Vol. XXI, No. 169 [ Business World Online ]
Monday, March 31, 2008 | MANILA, PHILIPPINES
DAVAO CITY — Despite adverse advisories from foreign governments, Mindanao cornered about P1.833 billion in foreign direct investment (FDIs) commitments last year, about seven percent more than the P1.712 billion recorded in 2006, the Mindanao Economic Development Council (MEDCo) reported last week.
Virgilio L. Leyretana, MEDCo chairman, in a forum late last week at the SM City Davao, attributed this to a "relatively peaceful environment" on the island which countered the formerly wide-spread impression of the entire Mindanao beset by violence. "Where there is peace, there is development," he said.
This, even as the seven percent growth last year paled in comparison to the 29.7% nationwide growth to P215.2 billion last year from 165.9 billion in 2006.
Mr. Leyretana said MEDCo tracking, based on data from the Board of Investments, showed a rise in FDI commitments since three years ago. He said that China has emerged as an increasingly key investor in Mindanao’s development. Most of these Chinese investments involved metal exploration, specifically projects in Zamboanga Peninsula, Davao and Caraga regions.
In previous years, Japanese firms involved in agribusiness were among the biggest investors, supporting expansion of banana plantations here. Last week, Sheik Adnan A. Zainy of the Saudi firm Abbar and Zainy Group said his firm is looking at putting in up to $60 million into the Philippines, including investments in banana plantations all over Davao Region and Central Mindanao, which has been the base of the Moro Islamic Liberation Front that is now in peace talks with the government.
Mindanao leaders have previously expressed concerns that foreign investors will continue to shy away from Mindanao because of travel advisories issued by several foreign governments. The Davao City Chamber of Commerce and Industry last year passed a resolution asking embassies to be specific in their travel advisories. — CQF
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