Exorbitant power price forces investors to back off
12 Mar '08
1 min read
The economy of Philippine is crumpling under the pressure of expensive electricity rates forcing American investors to look for better alternatives.
Officials from American Chamber of Commerce of the Philippines (AmCham) stated that foreign investors are finding it extremely difficult to set up their base in the country because of unreasonably high power prices as well as other factors like increasing cost of labor.
Investors are now eyeing ASEAN region and countries like Vietnam and Thailand instead of Philippines.
Even the textile industry which has suffered the same adversities for several years is found paralyzed because, policy makers have shown a defiant attitude leaving the situation without any suitable remedy.
Philippines has already lost its orders of shoe making to Vietnam and China and if concrete measure are not undertaken by the Government, it is likely loose the efficiency of its other thriving sectors as well.
A number of American companies have started pulling out of the country after the Government failed to bring down the rates of electricity in spite of making promises.
Presently, AmCham is giving full support to divestment of the remaining assets of the National Power Corporation (NPC).
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