Feb 24, 2014

Check: FDI and Power in Philippines

Power Struggles in the Philippines - Southeast Asia Real Time – WSJ


The high cost and sketchy reliability of electricity supplies in the Philippines are now the main deterrents to investing in the country, according to foreign business leaders, who see the problem as a persuasive reason to invest elsewhere. "Power is the biggest problem we have right now, both in terms of supply and price," said Dong Joo Kim, chief finance officer at Phoenix Semiconductor Philippines Corp., a Korean firm that manufactures components for Samsung in the Philippines.

The one thing the Philippines does seem to have in its favor is its lack of subsidies, said Francis Giles B. Puno, president and chief operating officer of First Gen Corp., a power generation company. And that could make the country more competitive in the future as other Southeast Asian governments find that they can no longer afford to subsidize their energy sectors.


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