Friday, May 30, 2008 [ sunstar.com.ph ]

 

THE House committee on economic affairs believes that Cebu is a promising area for future global investments, especially since the province is the "hub" of three major potential products in the country.

Committee members, however, admitted having apprehensions about the effects of the US economic slowdown, wage hike and oil price increases on local businesses.

The committee, which convened yesterday to conduct an ocular inspection and consultative meeting with locators of Cebu Mistumi Industries Inc. in Danao City to learn more about special economic zones, identified Cebu's three major potential products as the gun industry (in Danao), shipbuilding (in Balamban) and information technology (IT) infrastructure.

Rep. Roilo Golez of Parañaque City explained that Danao's "home-grown and growing" gun industry is one of Cebu's advantages since other areas cannot easily replicate it.

He also lauded Tsuneishi Heavy Industries that can build a bulk carrier in about 45 days and the Aboitiz-owned FBMA Marine Inc., which produces world-class boats for international clients, including the British Navy.

"If Tsuneishi and (South Korea's) Hanjin (Heavy Industries and Construction) in Subic will work together, the Philippines will become the fourth largest shipbuilding (industry) in the world, (next to) China, Japan and Korea. It used to be Norway, Poland, US and England. Now, we are very much in the picture," he said.

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"Cebu is contributing to the Philippines (becoming) a major shipbuilder."

Having a good IT infrastructure, Golez said, enables hundreds of workers to work in call centers and animation development. He noted that Cebu "has a very good connection" with the foreign movie industry with the presence of Bigfoot Entertainment facilities here.

"I think the committee is not the only one eyeing Cebu as a priority area (for development), but also future investments of companies," he said.

Committee Chairman Ramon "Red" Durano VI (Cebu, 5th district) admitted that the body is aware of the apprehensions of the business sector to invest, expand or hire more workers with the looming US recession and the increases in oil prices and wages.

The Bangko Sentral ng Pilipinas (BSP) reported that Philippine companies are shelving plans to expand and hire more due to these factors.

This was based on a survey of 1,258 firms among the country's top 7,000 companies. The results showed fierce competition and weak demand as "key risks to business activity" from March to May.

"We are trying to come up with resolutions to tackle these. We will be having hearings to discuss how we can deal with these (factors)," Durano said in a news conference.

The House committee on economic affairs asked the management of Cebu Mitsumi Industries Inc. for recommendations on how the government can help industries.

Initially, Cebu Mitsumi director and corporate secretary Januario Seno asked the government to bring back the incentives that used to be extended to companies that put up facilities in the countryside, as well as to lower power rates. (NRC)

Courtesy from: Land Asia Institute Philippines

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