UK Investors keen on PH
Businessmen and investors in the United Kingdom(UK) are showing strong interest in the Philippines which is currently enjoying strong economic growth due to infrastructure spending and a skilled and relative cheap labor force.
During a media roundtable discussion, HSBC Philippines President and Chief Executive Officer Wick Veloso said his recent talks with the UK Government, business leaders and colleagues in HSBC headquarters generated “very positive” response for the Philippines.
Together with Infrastructure and BPO as some of the strongest sectors growing in the country, Veloso said the growth trajectory of the Philippines is attracting the attention of companies looking for opportunities in the ASEAN.
He noted that this interest in the Philippines has already translated into investments and noted that, of HSBC’s $45 billion in custodized funds, $5 billion is accounted for British investors.
“The amount could actually be higher since we expect some funds from other countries like Hong Kong to also have British origins,” Veloso said.
He said British investors are attracted by the Philippines’ growing economy backed by infrastructure investments and its strong demographics which is also spurring consumer spending.
Veloso noted that, aside from having skilled workers, the labor force in the Philippines, particularly those in the managerial level, cost much less than its ASEAN counterparts such as Singapore.
Because of this, Veloso said British businesses are seeking to invest in the Philippines or seek Philippine partners for
investments in infrastructure, education and other growth sectors.
He noted that the UK is also strong in engineering and this will jive with Philippine conglomerates’ thrust to invest in infrastructure projects being bid out by the government.
Veloso also noted that, because of the soft economy of Europe, assets in the UK now cost less, thus this is also a good time for Philippine companies to invest in the UK.
Meanwhile, Veloso noted that the local equities market is seen to continue moving up and down in response to global market forces.
He added that US interest rate expectations are playing a big role in the movement of stock prices and not recent developments in the local political front.