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33 Comments on "Loser mentality: Filipinos’ lazy development strategy of attracting foreign investment"

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Michael Rubio
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If true, this is staggering. Now the thing is, are these chunks of capital belonging to a highly diversified depositor base? If so, what is the best way to turn the blocks of funds into financing instruments for business? What seems to be the obvious answer is the local stock market, but no, not really. The listed companies tend to be either old and mature — and may not really need capital infusion as I haven’t really seen strategic expansion. The others are highly speculative, such as mining companies. An exciting area of investment is the startup community – whether… Read more »
libertas
Guest
“James Henry, a former McKinsey & Co. chief economist who now works with the Tax Justice Network, a non-government organization campaigning against tax havens, estimated that the stock of flight capital out of the Philippines reached $97 billion as of 2010. That is more than the country’s external debt of only $60 billion that year as estimated by the Bangko Sentral ng Pilipinas.” PCIJ 10 may 2013 It is also equivalent to 2 years govt budget. So easy to see why no inward investment/infrastructure projects or industry recapitalisation. When added to the 30% + skimmed from the budget for intelligence… Read more »
Amir Al Bahr
Guest

The BIG assumption underpinning all this “debate” is that more money will necessarily spell a better future for Filipinos. We assume that money in the hands of Filipinos will be well-spent.

More money = more opportunities to waste money.

If Filipinos don’t spend (and save) wisely what they currently have, what makes one think they will spend and save any wiser when they get more of it?

This reality simply goes inside one ear, and out the other, of some our society’s supposed “thinkers” and “solution finders”.

libertas
Guest
The business principle employed in the philippines is generally one of short term gains resulting in an extractive economy where there is not the confidence to reinvest nationally. Part of that may be explained by past political uncertainties, and the same was/is evident in other countries e.g russia. It also partly explains the constant resistance to economic charter change, which currently means foreign companies provide capital/risk but without full operational/fiscal control. This worked for global brands who wanted a presence and take a long term view, although even they are getting weary of the philippines, but lower down the pyramid… Read more »
Johnny Saint
Guest
“This worked for global brands who wanted a presence and take a long term view, although even they are getting weary of the philippines…” Most of the manufacturing jobs that global brands brought to the Philippines moved out nearly fifteen years ago. Johnson and Johnson, Procter and Gamble, Unilever all moved their manufacturing to Thailand, Vietnam and China. Where once the labels on the products made by these companies read “Made in the Philippines,” they now read “Made in Thailand.” Not only does this mean investments are flowing to our regional neighbors, it also means that the money that was… Read more »
OnesimusUnbound
Guest

And come ASEAN 2015, how on earth will the Philippines compete with other ASEAN nations with the country’s current economic policies.

ChinoF
Member

Lots of money? Most of it probably passes through the shadow economy that Ben Kritz talked about in Manila Times.

ChinoF
Member

Lemme add, before you say “Benign0 is against FDI…” nowhere in the article does he say we don’t need FDI. FDI is good! We certainly need it at this point. Question is, are we of the mentality that we can use it properly? Financial history of the country says it. And… look at Filipino lotto winners. How do they handle their “blessings from heaven?”

libertas
Guest

The only major infrastucture project/investment will be clark airport ( refurbishment/expansion) and high speed link to manila and extension to tarlac.
Uncle cojuangco and his new airline wants it and now the mid-term election is over then full steam ahead, and hacienda luisita will also move into another gear.

Gerry
Guest
it is SAD that Filipino’s will not prosper even when peso’s are available for investment. The price of GAS, the price of electricity NEGATE almost all profitable investments fro the average pinoy. A taxi-cab investment is stunted by high cost gas/fuel. Any type of factory is stunted for the price of electricity is the highest in the world and both are speculated on daily to produce the highest price possible and then lets not forget the TAXES on both those items is EXCESSIVE/OUTRAGEOUS. So while calling the Filipino at home:lazy, un-motivated, boozers etc.. Can anyone blame them? The Gov’t. taxes… Read more »
ChinoF
Member

But some still make it despite these taxes. The Sys SM brand, for instance, and many other companies that have lasted the years?

johndoenymous@gmail.com
Guest
johndoenymous@gmail.com

That’s cause those people are greedy and sold their souls to the devil.

But seriously, I think it has something to do with what they do AFTER taxes.

How much do they spend on gadgets, bags, trinkets, and clothes they do not need? Do they buy new phones because there’s a new model? Because their phone is old? Or because their phone is broken?

For some people, I suggest placing their money in stocks because in my case, it fulfills my urge to spend money, gives me a high similar to gambling, gives me (sometimes) an alternative source of income.

mcalleyboy
Guest

I used to shop at the SM but not anymore, leave that to the rich and shameless, tourist and other misc fools.

mcalleyboy
Guest

VAT Tax, never noticed just how much tax was getting collected till a couple of years ago when I brought home my groceries, not much to show for $400 of spending only to find out that my VAT tax took up half the bill, I think the VAT has eased up or they came up with certain items VAT free or VAT discounts on certain products.

Hyden Toro
Guest

It is very easy to circulate False Press Releases; especially from the YellowTard Press, to spin peoples’ mind. That they are in the era of Aquino prosperity.
Unfortunately, there are still people with eyes and brains; with some common senses left in their heads.
Infaltion is running wild in the Philippines. Soon, it will like in the Aquino KALIBAPI Japanese era. Where the occupying Japanese goverment , printed “Mickey Mouse” Philippine currency. To buy a ganta of rice. It cost 5,000 pesos of Japanese money – a “bayongful” of currency…

mcalleyboy
Guest

I don’t feel it matters who’s in charge, I used to buy into the Yellow team past but? They don’t own everybody here, it’s an everybody issue and I hope the peso keeps on dropping and way overdue, should be at 50 peso’s-$1 just like all Pnoy’s think it is and it should be, I look at the garbage 42 peso’s can buy and I’m getting ripped off.

Vincent
Guest
How can a Filipino save money if his income’s not enough to feed his family 3 square meals a day? They keep talking about saving like there’s excess money to save. These OFW’s don’t earn much, most earn just 20-30 thousand pesos a month, and minus living expenses on said countries, that’s barely even enough to put one kid through college. Most OFW’s are investing through education. Putting their kids through school is better than letting cash sit in a bank. This article is ignorant, stupid and insulting, the author is some well-to-do moron who isn’t living in the same… Read more »
fabulous
Guest
Agree. The ordinary employee, which comprises the bulk of working Filipinos, does not earn much to be able to set aside something for the so-called “rainy days.” What they earn is only enough to tide them over till the next payday. But most of the time, they even have to resort to usurious moneylenders for other big financial requirements of the family that cannot be addressed by their salaries. Personally, I guess, the right way to address this economic constraints of the Filipino is to allow foreign investors to come in and compete with our native oligarchs to widen the… Read more »
Gerry
Guest
@Fabulous, you are correct. the present business climate in the country is such that ‘local’ business’s(inter-changeable term:political dynasty) have a monopolistic hold on the local economy. it is not in the interests of the richest in the country to allow any type of ‘foreign’ investors to come in and challenge the indigenous business’s for fear of losing their monopoly. OR to allow local competition to thrive, for the same reason. do not let the idiotic comments made to you about “if Filipino’s don’t trust the local economy, foreign investors won’t either” because, as you stated: the average Filipino can not… Read more »
Miriam Quiamco
Guest
Good rebuttal to Mr. Johnny Saint’s argument below. It really is pointless to belabor the point that we need to revise the constitution to allow more FDIs to come in: it is clear as daylight, we need FDIs inflows badly. I see this more pressingly in the energy sector. If only we let the German companies come in and build the grid for solar power generation in our country, our energy crisis will be solved. It has been said time and time again that it is cheaper for this alternative power source to be built in a country like ours… Read more »
Johnny Saint
Guest
Vincent, fabulous, Did you actually read the article? Did you comprehend it? There are two salient points that you should focus on. First, there is some TWO TRILLION PESOS — up to US$48 billion — parked with the BSP in the form of SDA accounts. This money comes from anyone — the so-called elite, the middle class, OFWs — who has some amount of disposable income or savings and are looking to invest in a short term placement that pays better than the regular deposit accounts. We aren’t talking about day laborers or casual workers at the low end of… Read more »
Vincent
Guest
“46% goes to debt repayment. The rest goes to expenses, including basic needs, consumer spending, including the purchase of high-end luxury items, and savings.” There’s nothing wrong with my comprehension, thank you very much. So you’re implying there’s something wrong with paying off debts? Paying for basic needs? Just how much of the percentage there goes to what YOU consider “luxury” items? And just how much percentage should YOU think the Filipino spend on them? Give that OFW’s work abroad for years on end, away from their family, they have the RIGHT to buy a little “luxury” item. If the… Read more »
Vincent
Guest

Filipinos are NOT Lazy” why no edit button?

mcalleyboy
Guest
I run into these OFW’s that buy luxury items such as a brand new SUV, they look pretty rich as they drive and park it at the grocery store and then come out with a full family and a tiny package of food, lol. Living like a big shot has its downers and wasting your money on junk that will eventually break down and not business is the normal, showing up the neighbor is an everyday event and then back to work and debauchery with other women in another country… you guys tell the family your return date but it’s… Read more »
Johnny Saint
Guest
Apparently, Vincent, you have very poor comprehension. And it’s colored by your personal bias against the article’s author. There’s just no call to degenerate into name calling. First off, you are completely disregarding the main point of the post. There is up to $48 billion parked with the BSP. Money that is not being used for investment in the real economy. Regardless of what political slant you or Miriam Quiamco or Gerry may have, the fact is THERE IS MONEY AVAILABLE for investing locally that does not have to come from FDI sources. NONE of your posts deny this; they… Read more »
Johnny Saint
Guest
“With more disposable income, Filipinos can begin to save for their future. “Filipinos are lazy, Filipinos can live and be hard working citizens in other countries, the here is that they can’t work locally because THERE ARE NO JOBS.” Further indication, Vincent, that you failed to understand the article. The SDA money parked in the BSP IS DISPOSABLE INCOME AND/OR SAVINGS. If this money could be channeled into the local REAL economy, there WOULD BE JOBS in the Philippines that actually produced something of value. And this could be done without having to wait for a multinational corporation to tell… Read more »
mcalleyboy
Guest
There are jobs for skilled workers and college graduates but the same issue with the Philippine citizen is the same is with the Mexican they want to make more money and don’t want to wait for changes to happen they need change now, sadly it hurts both countries when its top players leave country and don’t have the patience to improve their own country. Hard to create jobs when nobody wants to let foreign investors in, the whole 60/40% business investment isn’t gonna work and mom and pop shops with limited funds, that’s what we have now it really sucks.
Johnny Saint
Guest
“There are jobs for skilled workers and college graduates but the same issue with the Philippine citizen is the same is with the Mexican they want to make more money…” This assertion is erroneous. The implications are that the only reason Filipinos work abroad is the higher pay. Putting aside the issues of greed and impatience, you should first take a look at the labor situation in the Philippines before posting baseless comments. The fact is the current economy is not producing the required number of jobs that pay real wages and contribute to inclusive growth that help bring people… Read more »
Johnny Saint
Guest

The first line of that last paragraph should read “What we require is the application of a strategic approach to encourage Filipinos to invest that $48 billion in the local REAL economy.”

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