Survey: Philippines Viewed By Japanese As One Of The Riskiest Places For Business

Manila, Philippines (AHN) - A survey made by the Japan External Trade Organization has shown that majority of Japanese businessmen consider the Philippines as one of the riskiest regions to do business because of the appreciating peso, lack of key infrastructure and intellectual property rights issues.

The survey of international operations of Japanese firms, 66.4 percent of those polled said they have plans to expand offshore operations, but the Philippines was their least choice among 18 countries.

Countries that were included in the survey as likely destinations for overseas expansions were: China, the United States, India, Thailand, Western Europe, Korea, Taiwan, Vietnam, Russia, Hong Kong, Central and Eastern Europe, Singapore, Brazil, Malaysia, Indonesia, Canada, Mexico and the Philippines.

It was gathered that Japanese firms place the Philippines on its last among the list when it comes to business sales expansion. The Philippines placed 13th in production expansion of low-end product and also the 13th choice to expand production of high-end products.

The poll placed Manila the 15th best place to conduct primary research and development in, and, worst place to conduct new product development.

The survey, conducted between November 27, 2007 and January 4, 2008, was participated by 733 Japanese firms. Most of them were involved in manufacturing, trading and wholesale/trading.

But there was some positive news for the Philippines as the firms gave plus points to the Philippines in the areas of little language barrier, second; fifth in full set of preferential measures and incentives; fifth in low business costs; and fifth in easy to access local information and services.