It is not a well-known fact that the Makati Business Club serves as the secretariat of several regional and bilateral business councils established to promote not only business and investment between the Philippines and other countries, but also the exchange of views on policies of mutual concern. I have written many times about the Apec Business Advisory Council where the country is ably represented by Jaime Augusto Zobel de Ayala, Doris Ho and Tony Tan Caktiong. The MBC also services the Philippines-US, Philippines-UK, Philippines-France, Philippines-Singapore and Philippines-Malaysia Business Councils. As there are a number of other countries with which we do business, the Philippine Chamber of Commerce and Industry (PCCI) acts as secretariat for the other councils. Often, the MBC and PCCI help organize business delegations for official state visits as part of this role of investment promotion.
Early this week, the PCCI and MBC contributed to the success of a Philippines-Malaysia Investment Partnership Forum organized by the Philippine Embassy in Malaysia jointly with the Asian Strategy and Leadership Institute and the AIM Alumni of Malaysia. The forum was a key initiative pursued by Ambassador Eduardo Malaya, who took on his assignment only in September 2011. I understand that in less than nine months, the good ambassador has improved delivery of services to our huge OFW community in Malaysia and completed much needed renovations of the embassy and its grounds aside from making the investment forum possible.
The investment forum saw Vice President Jejomar Binay giving the keynote address to some 200 representatives of the Malaysian business community. The Vice President was joined by a delegation of 35 Filipino business leaders, including Washington SyCip, Miguel Varela and Edgardo Lacson.
The day before the forum, a luncheon meeting started the revitalization of the Malaysia-Philippines Business Council (MPBC). The meeting was also organized by Ambassador Malaya and was also joined by Vice President Binay. The MBC, as the secretariat of the Philippines-Malaysia Business Council (PMBC)—the counterpart of MPBC in the Philippines—was asked to address the luncheon. I took the opportunity to remind the group that it was on the occasion of the Apec Business Forum in Manila on Nov. 23, 1996, that both the MPBC and PMBC were launched in the presence of then President Fidel V. Ramos and then Malaysian Prime Minister Dato Seri Dr. Mahathir Mohamad. Under a memorandum of understanding, the two parties established a Supreme Council that committed to the same objectives we both have to this day.
I also told the group that: “On the Philippine side, our founding chairman, Atty. Ricardo Romulo, has retired from active participation in the Council since last year. The Malaysian ambassador to Manila is also scheduled to end his tour of duty soon. With these transitions on our end, we are challenged to continue PMBC’s mission as we look forward to Asean’s economic integration by 2015. Thus, today’s meeting rekindles hope and a spirit of cooperation based on our common private sector goals to further bilateral trade, investments, SMEs (small and medium enterprises), and information exchanges.”
Indeed, there is so much that must be done for trade and investment promotion. In the recent World Bank East Asia and Pacific Economic Update, foreign direct investments to the Philippines in 2011 totaled only $1.3 billion, compared to Vietnam’s $7.3 billion, Thailand’s $8.4 billion, Malaysia’s $10.8 billion and Indonesia’s $18.9 billion. Though its foreign direct investments increased from a measly $700 million in 2010, the Philippines’ 2011 numbers paled in comparison with the rest of the region.
The good news from the forum in Malaysia is confirmation that AlloyMtd Group of Malaysia will invest in nine hydropower projects in Agusan. CIMB Group also recently acquired a majority stake in Bank of Commerce, which now means that the two largest Malaysian banks (May Bank is the other) are now doing business here. Incidentally, AlloyMtd’s president and CEO, Azmil Khalid, will initially chair the revitalized MPBC, in which CIMB will also sit.
While the National Competitiveness Council focuses on improving our global competitiveness rankings that impact on investment decisions, business groups must support government efforts to attract more investments. And this is why a group of about 20 of our top CEOs will be joining President Aquino in his visits to the United Kingdom and the United States next week. The Philippines-US and Philippines-UK Business Councils have been tapped by the government to organize the business delegations that will join the President and help convince investors in the two countries that investing in the Philippines “can be more fun, too!”
The business councils that the MBC works with have members outside of the MBC family. In fact, the council chairs hope to get more interest and support from the private sector, so that by the coming together of more business leaders, so much more can be done to promote trade and investment. Ramon del Rosario, Jesus Tambunting, Anton Huang and Guillermo Luchangco, who chair the Philippines-US, Philippines-UK, Philippines-France and Philippines-Singapore Business Councils, respectively, will certainly welcome support from the larger business community, just as our PCCI friends would. For the PMBC, a meeting will be convened soon to restart our efforts here and work very closely with the MPBC.
For sure, investment promotion work in the country is one public-private partnership (PPP) that seems to be moving full steam ahead!
Peter Angelo V. Perfecto is the executive director of the Makati Business Club.