Page 63 - Forbes - Asia (October 2019)

Under what Manila has dubbed its “Build, 43.
Build, Build” program, infrastructure spending ERRAMON ABOITIZ
grew by 35% in 2018, rising to 5.5% of GDP $165 MILLION 3
Build It from 4.5% a year earlier. The government aims ABOITIZ EQUITY VENTURES
AGE: 63
(or They Won’t Come) to raise it to above 6% by 2020. Supporting this
investment push is the government’s easing of
The Philippines’ infrastructure on a per- FDI restrictions. Firms with up to 40% foreign 44.
capita basis, a key prerequisite to growth, ownership can now bid to work on locally PHILIP ANG
has fallen far behind other countries. $160 MILLION 3
funded infrastructure projects. The govern- AGE: 78
Capital stock per capita ment has also signaled that it will push for
(in constant 2011 dollars) changes to make the Philippines’ constitution
2000 45.
more friendly to FDI. JULIETTE
2015
COUNTRY | % INCREASE The main source of this upturn in infra- ROMUALDEZ
structure investment is China. China has so far $150 MILLION S
Japan | 65%
pledged $9 billion in infrastructure investment in BANCO DE ORO
60,507 the Philippines, including the $4.3 billion expan- AGE: 83

99,837 sion and upgrade of the road and railway net-
works around Metro Manila, equivalent to 1.2% 46.
of GDP. Beijing and Manila have inked roughly FELIPE GOZON
Malaysia | 39% $300 million loan agreements to fund water and $145 MILLION S
GMA NETWORK
irrigation projects, equivalent to 0.1% of GDP.
34,364 AGE: 79
However, the relationship between China
47,766 and the Philippines is complicated by their rival 47.
territorial claims in the South China Sea, and BETTY ANG
by domestic opposition that characterizes rising $141 MILLION T
China | 365%
investment from China as “neocolonialism.” MONDE NISSIN
9,864 Resistance is also fueled by concerns that, when
some countries fell behind on debt repayments 48.
36,002
to China, they had to swap debt for equity, as BIENVENIDO
Tajikistan did in 2011 and Sri Lanka in 2017. TANTOCO
Indonesia | 54% So far Philippine President Rodrigo Duterte $140 MILLION 3
is not backing away from working closely SSI GROUP
15,902 AGE: 98
with China to drive infrastructure investment.
24,489 China’s financing is the best option for address-
49.
ing the Philippines’ deep infrastructure deficit ANTONIO LEE TIU
quickly and on a massive scale. Barring a major
India | 54% $135 MILLION Ì
policy U-turn, it is clear that the Philippines is AGRINURTURE
6,788 at a tipping point. Rising investment by China AGE: 44
in Philippine infrastructure is a powerful cata-
10,453
lyst for stronger FDI growth. 50.
The productivity of the Philippine economy MENARDO JIMENEZ

The Philippines | 18% is poised to improve as better infrastructure $130 MILLION WX
eases constraints. When coupled with a better GMA NETWORK
8,786 AGE: 86
welcome for foreign companies and investment,
10,360 the Philippines’ anemic manufacturing sector
could get a powerful boost, giving the economy
a more balanced foundation supported by both
Vietnam | 260%
industrial production and services. Accordingly,
3,319 the Philippines’ merchandise exports would
pick up, making the current account more stable
8,630
and the peso more resilient. A new and stronger FOR MORE INFO,
economy could emerge, spawning new opportu- GO TO FORBES.COM/
SOURCE: IMF AND UN (DATA AS OF JAN. 2017) nities for wealth creation. F PHILIPPINES

OCTOBER 2019 FORBES ASIA | 61