Sokor investors keen on infra, energy projects in Philippines

Board of Investments (BOI) Managing Head Dr. Ceferino Rodolfo told the visiting South Korean delegation in the country that the Philippine economy is ripe for foreign investments.

Ambassador Kim Young -Sun, secretary-general of the Asean Korea Centre (AKC) led a delegation of 14 South Korean companies keen on investing on infrastructure and energy projects in the Philippines.

Rodolfo said now is the best time for foreign investors to invest in the Philippines, as the country continues to ex­perience growth and stability.

He said the government’s expenditure on infrastructure contributes significantly to economic growth, adding that Philippine infrastruc­ture spending has increased from 1.8 percent of GDP in 2010 to 4.1 percent of GDP in 2015.

“The upward trend of GDP (gross domestic prod­uct) growth presents tremen­dous opportunities for further investments in infrastruc­ture,” Rodolfo said.

Philippine GDP has been experiencing a 6.2-percent growth rate in the past five years, the fastest since 1970s. This year, the government is targeting GDP growth between 6 percent and 7 percent.

“This is one of the means to maximize the gains from the AEC (Asean Economic Community). With stable macroeconomic funda­mentals, expanded market access, and advances in infrastructure and human capital development, we gain leverage to position the Phil­ippines as a manufacturing hub to service the Asean market,” Rodolfo said.

He added that the Asean-Korea Free Trade Agreement (Akfta) facilitates South Korean investments in Southeast Asian countries.

Formally established on Dec. 31, 2015, the AEC aims to establish a single market and production base with free movement of goods, services and investments across the ten Asean members.

Southeast Asia is one of the world’s fastest-growing regions, with a combined population of 600 million people and a GDP of more than $6.2 trillion.

Won-Jik Kwon, minis­ter and consul general and deputy chief of mission of the South Korean Embassy in the Philippines, expressed his appreciation for the dele­gates’ decision to choose the Philippines for its investment mission, saying the country is a strategic gateway to an integrated Asean market.

Meanwhile, Young-Sun said the Philippines emerged as one of the most attrac­tive investment destinations in the infrastructure and energy sectors. He said the volume of investments in these sectors more than doubled from $18 million in 2013 to $40 million in 2014.

Investments in infra­structure and energy com­pose some 40 percent of South Korea’s total invest­ment in the Philippines.

South Korea is the fifth largest investor of the Phil­ippines, with interests in manufacturing, shipbuilding, retail, gaming and software development, tourism, infra­structure, agriculture, agri­business, energy, and banking and finance.

During their visit to the Philippines, the delegates vis­ited the Raslag Photovoltaic (PV) Power Plant, the Ninoy Aquino International Airport Expressway, and the Daang Hari Expressway.