tag:blogger.com,1999:blog-4370906785269759264.post2300011756357306533..comments2024-02-16T09:51:55.973-08:00Comments on Ask A Filipino!: Shouldn't the Philippines repeal the "60/40 Law" (and change its Constitution) to encourage investments?The Filipinohttp://www.blogger.com/profile/06411009013482740401noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-4370906785269759264.post-51908692907376977982012-04-29T00:32:24.901-07:002012-04-29T00:32:24.901-07:00I see both side of the arguments here, but I would...I see both side of the arguments here, but I would have to take against the 60/40 rule side. Having been from the states, and been in Philippines many times, I personally would not invest one single cent in to the Philippines. The corruption is high and 60/40 rule does not protect foreigner investments, because when it comes to voting power in a company foreigners will always get out voted. Protectionism is only good for certain industries, not all. Ricky S is right, these politicans say protectionism is for the good of the people in the Philippines, but it is a crock of lies, they are only trying to protect their own interests. Filipinos that actually believe those crock of lies that come out of the mouth of the Philippine politicans should have their head examined. Most Americans do not trust our politicans these days, we know most of them are liars and full of shit but we can vote them out. AS for Philippines the power only rest in the few corrupt elite families, and they are always the ones on the ballot. They are also the ones that have interests in Philippines that they want to protect, so I do not see this 60/40 going away. Also, I want to make an argument on the foreigner only looking to exploit Philippine natural resources. If foreign companies do not go in to mine for oil, silver, gold, natural gas, wood...etc. would Philippine companies know how to do it, do they have the technology to do it? From what I see, none of them can do it. One person says it doesn't create jobs, why wouldn't it, logging companies need workers, sames goes to oil, same goes for precious metals...etc. Plus if these companies set up shop in the Philippines, Philippine government will have more tax revenue to collect plus they get share of the profit from the natural resources, but as for how much it actually goes in to public projects that's a different story because of how bad the corruption is in the government there. Out of the $100 tax revenue probably less than $3 gets used for public projects, $97 goes in to corrupt politican's pockets. Politicans want to remain control there because that's how they suck common people dry over there, that's why when there is an election somebody always get shot. Maybe people who got shot are the ones that actually want to make the country better, but they would have to attack protectionism first, which would end up attacking other politican's interests. The funny thing is Filipino people keeps on voting for these Politicans who fucks up Philippines and make their life worse off. If protectionism is so good why is Philippine economy dead last in SE Asia for the last 3 decades or more. Also why do so many Filipinos have to go overseas to find a job, aren't there enough jobs in Philippines? I think these are the questions you guys need to ask every single one of your Senators and Representatives, if they don't know the answer then vote them out of office because those are the corrupt ones that are trying to protect their own interest and want to continue receiving tons of corrupt money.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-81997719695906639522012-04-29T00:31:18.490-07:002012-04-29T00:31:18.490-07:00I see both side of the arguments here, but I would...I see both side of the arguments here, but I would have to take against the 60/40 rule side. Having been from the states, and been in Philippines many times, I personally would not invest one single cent in to the Philippines. The corruption is high and 60/40 rule does not protect foreigner investments, because when it comes to voting power in a company foreigners will always get out voted. Protectionism is only good for certain industries, not all. Ricky S is right, these politicans say protectionism is for the good of the people in the Philippines, but it is a crock of lies, they are only trying to protect their own interests. Filipinos that actually believe those crock of lies that come out of the mouth of the Philippine politicans should have their head examined. Most Americans do not trust our politicans these days, we know most of them are liars and full of shit but we can vote them out. AS for Philippines the power only rest in the few corrupt elite families, and they are always the ones on the ballot. They are also the ones that have interests in Philippines that they want to protect, so I do not see this 60/40 going away. Also, I want to make an argument on the foreigner only looking to exploit Philippine natural resources. If foreign companies do not go in to mine for oil, silver, gold, natural gas, wood...etc. would Philippine companies know how to do it, do they have the technology to do it? From what I see, none of them can do it. One person says it doesn't create jobs, why wouldn't it, logging companies need workers, sames goes to oil, same goes for precious metals...etc. Plus if these companies set up shop in the Philippines, Philippine government will have more tax revenue to collect plus they get share of the profit from the natural resources, but as for how much it actually goes in to public projects that's a different story because of how bad the corruption is in the government there. Out of the $100 tax revenue probably less than $3 gets used for public projects, $97 goes in to corrupt politican's pockets. Politicans want to remain control there because that's how they suck common people dry over there, that's why when there is an election somebody always get shot. Maybe people who got shot are the ones that actually want to make the country better, but they would have to attack protectionism first, which would end up attacking other politican's interests. The funny thing is Filipino people keeps on voting for these Politicans who fucks up Philippines and make their life worse off. If protectionism is so good why is Philippine economy dead last in SE Asia for the last 3 decades or more. Also why do so many Filipinos have to go overseas to find a job, aren't there enough jobs in Philippines? I think these are the questions you guys need to ask every single one of your Senators and Representatives, if they don't know the answer then vote them out of office because those are the corrupt ones that are trying to protect their own interest and want to continue receiving tons of corrupt money.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-81006945808455772462012-03-19T10:23:44.553-07:002012-03-19T10:23:44.553-07:00Then Senator Biazon and erstwhile Chairman of Nati...Then Senator Biazon and erstwhile Chairman of National Defense and Security said that foreign investors have been known to buy large tracts of land in other countries and might do the same if we allow them 100% ownership. It can be used to influence politics and be a national threat.<br /><br />My answer: Why don't we start with industrial land that foreigners can use to build their factories employing locals to construct and run it. They should also be free to own residential land for own use.<br /><br />Ody dela Merced <a href="http://www.myphilippineproperty.com/Who_we_are/page_2045197.html" rel="nofollow">What I do for a living</a>Ody dela Mercedhttp://www.myphilippineproperty.comnoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-79011533006666647082011-11-09T09:17:54.382-08:002011-11-09T09:17:54.382-08:00"Who among the locals can pony up the require..."Who among the locals can pony up the required 60% in big capital-intensive projects to allow them to serve as joint venture partners of foreign investors willing to enter the Philippine market?"<br /><br />But we can finance them locally. Why do we have to let foreign investors usurp and exploit the local terrain, resources and labor when we should be providing average Filipinos to do just that.Jay A. Verisennoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-56216422281175541142011-02-10T02:17:34.797-08:002011-02-10T02:17:34.797-08:00Finally, the Department of Trade and Industry is r...Finally, the Department of Trade and Industry is realizing what some of the true deterrents to investments are in the Philippines:<br />1) lack of predictability, or long term policies - we change the rules too often<br />2) lack of coherence - different government agencies have overlapping rules which go in different directions<br />ex. BOI grants tax incentive, but BIR men will come to assess because they claim that they are not 'informed' of the BOI incentives<br />3) irrational rules made by bureaucrats who have no business experience (except for electioneering or commissioneering)<br />4) poor info dissemination and implementation of national polices vis a vis regional or local polices for investment<br />ex. Local government code was passed in 1991 for implementation in 1992. This covers revenue allotments for the local government units that are hosting investments like mines, geothermal plants, oil wells. Even if these companies are headquartered in Makati, a portion of their taxes and fees must accrue to the area where their resource base is located.<br />This is to devolve policy making to the local government units and provide for its financial support<br />These are already in our laws, but not many have read them or care to implement correctly <br /><br /><br />http://business.inquirer.net/money/topstories/view/20110209-319400/Passage-of-investor-protection-law-pushedBrouha Hanoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-56538593523678896102011-02-08T08:45:44.238-08:002011-02-08T08:45:44.238-08:00Im an american with familly in the Philipines. I w...Im an american with familly in the Philipines. I would never spend one red cent in investment there. Unlike here in the states, I can't own anything and given the corruption that is so obvious why would I start a business there. Foreiners that want to buy a house and live in the Philipines also would like to start businesses there. We have the skills and the money to do so. We want to live there and be part of the Philipino culture. This would help the economy and put people to work. I can say that until this changes you wont get the investment needed. So as it stands your #1 source of income are the poor little girls that marry old fat american men and send home $ to familly and thats the truth....how awfullAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-38599821565707510332011-02-03T19:58:16.039-08:002011-02-03T19:58:16.039-08:00The Philippine plutocrats are aided first and fore...The Philippine plutocrats are aided first and foremost by the ignorance of the people, even by the well educated, supposedly sophisticated, well meaning, and well known national politicians considered "good guys". Many of the latter do believe sincerely in the "Filipino First policy" that provides investment killing, job destroying, poverty insuring policies that only serve to keep prices high in the domestic economy through blatant "rent seeking" laws of the economically privileged few, which results in self perpetuating dominance!<br /><br />We need a couple dominant social and economic social class to take the long view who are willing to take a socially responsible, less greedy economic model that will free up pent up humungous resources of the country, currently hijacked by a rapacious few. And in the end, just like many in the US a century ago and plutocrats in our neighboring successful Tiger economies have found out, 90% of $1 Billion is really much less than 10% of $500 Billion!Ricky S. (via email)noreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-14067929163031224812011-02-03T09:41:34.044-08:002011-02-03T09:41:34.044-08:00Dear Mike T.,
There is CAPITAL in the Philippines...Dear Mike T.,<br /><br />There is CAPITAL in the Philippines, but its not all in the stock market. Many companies don't list because our stock market is small and can be manipulated by someone or institutions that have blocks of change. Take the BW scandal etc.<br /><br />If you add our funky justice system to the equation , you have a great disincentive for foreigners or risk-adverse locals to come in.<br /><br />Add our very uncontrolled press and its unfiltered disclosures, and you have a very zany atmosphere for investment.<br /><br />Add our poor institutional regulation - the best agencies that 'money can buy', and you have unliscenced securities dealers and scams, kotong cops and fixers, customs crocodiles, etc that absolutely scare away the uninitiated westerner.<br /><br />I think that these are the reasons that big companies don't come in, and not because we have a 60/40 law.<br /><br />We also don't have an anti-usury law, so shitty banks that charge 9% per annum on credit cards, in developed nations, charge 3.35% per MONTH, or up to 7% per month if you've got a balance and are a few days late on the monthly payment.<br /><br />Private lending investors charge 5 to 6% per month with security or co-signer. Banks used to charge 42% per annum in the late 80's, it went down to about 24% in the 90's and must be fully secured and with personal surety.<br />They charge these rates, not because there is a lack of capital - but because they are greedy, and there is no law to stop them. <br /><br />I don't think that it's 'Nationalistic' policies that have driven 12 million Filipinos abroad - it is in fact our lack of Nationalistic policies that have done it.<br /><br />When the 60/40 laws were put in place, the big investors were oil companies, logging companies and mining companies. In other words, they had come for our natural resources, not necessarily to provide employment. I believe that investment safeguards should continue to exist in this type of area.<br /><br />The other big players were after our retail markets because of 90+ million consumers. Even if we have A,B,C,D,E segments, bottomline, our purchases add up. This category is open for foreign ownership, as long as they bring in big investments. I think Pinoy said $2.5M and up (which is only about one sari sari store in the US). <br />Anyway, Koreans, Chinese, Singaporeans etc, all come in daily into these sectors - and I really don't think anyone is stopping them,even if they aren't putting in the necessary investment. So that 60/40 law isn't stopping them either.<br /><br />Companies with legitimate interests and technology can set up within our PEZA zones, or if they are exporting, they can set up almost anywhere and avail of the incentives of the BOI.<br /><br />I think what the Filipinos need is not a change in the laws (if it takes too long), but a change in the mindsets. We don't have much of a shared national identity, apart from that of being a colonized victim.<br />We did throw our Nationalism into the dustbin, that's exactly where it has been ( except for a few glorious moments of awakening.)<br /><br />We need to rediscover the greatness of our race and to reach out and begin to fulfill our true destiny.<br />We are not the only nation that suffered diaspora, it just so happened that it was our generation that got the brunt of it. We cannot change that history, but we can still write the future as we wish it to be. <br /><br />We have to assume that we have strengths, we have to grit our teeth and make the effort to move forward. The government cannot do this for us - this effort must come from each Filipino, wherever in the world s/he is, and yet we must move as one body, if we really want positive change. <br /><br />We do this for ourselves, our families, our communities, our Nation. <br /><br />Yes, we can change the law, but I think first, we must change our minds. Believe that the Filipino can be great!<br /><br />Brouha HaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-21580531420544725992011-02-02T18:55:24.005-08:002011-02-02T18:55:24.005-08:00We've discussed this issue quite a few times a...We've discussed this issue quite a few times at AFBP and is so obvious to those involved in international business. In the 90s, I tried to get many of my American clients to invest in the RP, which involved actual due diligence trips to the country. <br /><br />But after legal review of the investment climate and the very poor reputation of the Judiciary in terms of integrity and potential safeguards against arbitrary rulings against foreign capital, every single one passed and invested in China, Thailand, Taiwan, and even Malaysia! They simply felt it wasn't worth the trouble when other countries were so welcoming. So here we are, at the bottom of FDI lists.<br /><br />And when we talked to even sophisticated Congresspersons, they gave me the impression that they fully subscribed to the so-called "Filipino First" investment policy, and saw nothing intrinsically wrong with the thinking that gives rise to the 60/40 Law. Bottom line, it's the people in power protecting their privileged investment positions at all costs, and the hell with the country. As in the US, it will probably take "traitors to their own class" to break this logjam or simply a revolution of the disempowered.<br /><br />We'll need the equivalent of people like Teddy Roosevelt, Andrew Carnegie, Franklin D Roosevelt, JFK, Warren Buffett, et al, who espoused laws and principles for the good of the country and its unemployed, even when those enlightened policies, on the surface, appeared to militate against their own interests. These people are driven to do what is right and often to do what is in their long term interest!!!<br /><br />For the wisest Capitalists know in the long run, their economic interests are furthered when business invest (either domestic or foreign) generates strong economic growth putting more money in the hands of the masses and the middle classes who comprise approximately 70% of the GDP. Ergo, more investment, ceteris paribus, means more employment, which means more Aggregate Demand, which then means MORE PROFITS, THE CAPITALIST END GAME!<br /><br />But we need traitors to their class, which will not easily give up their control of THE BEST CONGRESS MONEY CAN BUY! And who has the most money to buy them with? A rhetorical question.Ricky S. (via email)noreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-27999437348913979412011-01-31T22:33:33.272-08:002011-01-31T22:33:33.272-08:00I say change the constitution to let it fall in th...I say change the constitution to let it fall in the hands of those running the country (the Executive). I think they would know better when to repeal it or when not to. Perhaps they can even use it as bargaining chip with some countries who have vested interests coming in on some industries.<br /><br />-Dapo GiAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-14994079689560671872011-01-31T19:28:28.751-08:002011-01-31T19:28:28.751-08:00@Brouha Ha:
Ideas are good but in the real world,...@Brouha Ha:<br /><br />Ideas are good but in the real world, CAPITAL is needed to put ideas to action. How will you hire and employ workers without CAPITAL?<br /> <br />That is one of the most important issues in the Philippines today.<br /> <br />A million people have to leave the country to find employment.<br /> <br />And in order to generate employment, an economy needs Capital.<br /> <br />Where will that Capital come from if the local oligarchs are not able to provide the necessary Capital?<br /> <br />That is why attracting foreign investors becomes necessary and crucial.<br /> <br />Question: Is it really "Nationalism" to have policies designed to protect and foster an economy where 12 million people have to work abroad for foreign bosses because the fact of the matter is this 12 million can not find employment locally because of this "Nationalistic" investment policies?<br /> <br />Shouldnnt "Nationalism" be defined as a policy that fosters employment in our own country and not condoning a situation that forces the Filipinos to become vagabonds abroad - even tolerating the idea of working as illegal aliens abroad just to find menial employment?<br /> <br />Whose "Nationalism" is it where the Philippines harbors and nurtures 2 classes of Filipinos - one class that reaps the rewards of patronage, cronyism and a feudal despotic system where wealth is forever the monopoly of this class, and another class that is the unintended victim of the ruling elite that does not have the privilege, power, prestige and access to this Encomienda system (except by marriage and perhaps by using the government machinery to essentially extort or be the beneficary of bribes and extortion) a practise perpetuated and favored by the elite and its oligrachy of cronies and politicians and bureaucrats?<br /> <br />In other words, if it is the kind of pseudo "Nationalism" that keeps 90% of the people poor and ignorant - let's burn that "Nationalism" to the dustbin of history.Mike T.noreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-28620931027254973522011-01-31T17:44:39.955-08:002011-01-31T17:44:39.955-08:00Dear Pinoy,
I hate to say this to you, but your b...Dear Pinoy,<br /><br />I hate to say this to you, but your blogs that I enjoy most are those that answer naive, humorous and nonsensical questions.<br /><br />Please bring back the fun.<br /><br />Sincerely,<br /><br />Lady in WaitingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4370906785269759264.post-6493120802708070752011-01-31T09:52:36.545-08:002011-01-31T09:52:36.545-08:00Dear Mike T.,
Pinoy's answer is so long, and I...Dear Mike T.,<br />Pinoy's answer is so long, and I haven't read it but since you are in the States I thought the answer would be obvious.<br /><br />Why should any nation follow the example of the US and have everyone else own the real estate? Of course the argument is that they can't take it out of the country - but what if they buy it all up and not do anything with it since they would rather stay wherever they are right now. Where is the development there?<br /><br />Why should we give up real assets for paper which devalues? or is not tied to anything else, but more paper, or a bunch of zeroes on a computer?<br />That law could stand some ammendments, but personally I think that it's repeal is not the answer for the Philippines.<br /><br />What we are in need of is GOOD IDEAS. True original thought is capital, the rest is just money.<br />Then we need to get off the beach or the golf course and put some real muscle and sweat into turning our ideas into something that works.<br />If we do that, the money will come.<br /><br />Brouha HaAnonymousnoreply@blogger.com