Vol. XXII, No. 114 [ Business World Online ]
Monday, January 12, 2009 | MANILA, PHILIPPINES
Investment commitments to Clark Freeport in 2008 grew nearly five times more than the previous year’s level on the back of big-ticket tourism developments, the Clark Development Corp. (CDC) said.
But implementation of some of the investment plans may slow as locators grapple with the global economic downturn this year, experts said.
Registered investments at the freeport hit P9.643 billion by yearend, CDC Vice-President Ernesto S. Gorospe said in a phone interview late last week.
The figure is up by 386.3% from the P1.983 billion recorded in 2007, Board of Investments data show.
Investments for tourism activities made up the bulk of the pledges, Mr. Gorospe said, citing the Philippine Amusement and Gaming Corp. casino hotel (P1.07 billion), the retirement estates and health resorts of Korean firms CPR Palm Resort and A-PECH (P210.8 million and P237 million, respectively) and eco-tourism resort of Green Canyon Leisure Farms Corp. (P40 million).
"Maybe electronics investments will be affected and those from Korean investors will slow down because of the weakening of the Korean won. Those financed by banks may also have delayed implementation," Mr. Gorospe said in Filipino.
"But, so far, there have been no requests for deferment or extension of the grace period."
Officials from the Korean Chamber of Commerce of the Philippines, Inc. were not available for comment.
Investments from Taiwan firms to the freeport may have been delayed as well, at least in the short-term, the Philippine representative office in Taiwan said.
"Some plans may be delayed because they will be raising capital. [Taiwan-based] electronics firms will be the first to scale down plans," Manila Economic and Cultural Office Commercial Affairs Director Bernadita A. Mathay said in a phone interview yesterday.
"But those with mature products, mature technologiesthat need little research and development will go to the Philippines still," Ms. Mathay said.
"They will look for a place that have surplus of labor at good rates like India, Bangladesh and also the Philippines."
MECO Commercial Affairs Deputy Director Nicanor S. Bautista, said in the same interview: "On whether they will push through, that is not the issue. Yes, there will be some thinking going onBut the crisis highlights the need for them to consider the Philippines and the [rest of] ASEAN [Association of Southeast Asian Nations as alternatives to the US market]." — Jessica Anne D. Hermosa
