THE shipping and telecommunications in the Philippines are likely to receive an increase in EU investment after a law removes 40 per cent foreign equity cap in various industries, reports Manila's BusinessWorld.
European Chamber of Commerce (ECCP) president Lars Wittig declared that 'when it comes to shipping, we already know that the interest is keen; actually, I will say extreme.'
Despite the high freight rates in the Philippines, Mr Wittig stated some of the largest international shipping companies still had access to domestic freight.
Freight charges increased 25 per cent this year, reflecting the impact of higher oil prices.
The presence of foreign companies here is because of their enthusiasm, while Mr Wittig said 'because they had to go through a lot of challenges in order to get the advantages that they already had before the Public Service Act was signed.'
This was possible because of their size and decades of operations, which allowed them to find ways to work around obstacles.
'We want everybody, without any limitation, to be able to do it, not just the biggest because they have the money to find a way,' said Mr Wittig.
'It has to be equal, fair, even playing field for everybody - foreign and local alike, not just a few foreign and all the locals.'
Mr Wittig stated foreign interest in telecommunications was apparent from the 2018 bid to become the third player in the telecommunications industry.
'There were multiple European telco providers that came here, but none of them won the tender, also because many of them didn't even submit their proposal. Why? Because of the 40 per cent ownership cap,' said Mr Wittig.
'40 per cent into something like telco is a massive investment, but it's not enough ownership to control your own destiny. And therefore, that was won by the Chinese.'
Now that the Public Service Act has been passed, European telecommunications companies have indicated renewed interest.
'They are very eager to return now and give it another try, and they will be dead serious about it. I guarantee you,' said Mr Wittig.
'I also believe personally they will succeed in doing this.'
SeaNews Turkey
European Chamber of Commerce (ECCP) president Lars Wittig declared that 'when it comes to shipping, we already know that the interest is keen; actually, I will say extreme.'
Despite the high freight rates in the Philippines, Mr Wittig stated some of the largest international shipping companies still had access to domestic freight.
Freight charges increased 25 per cent this year, reflecting the impact of higher oil prices.
The presence of foreign companies here is because of their enthusiasm, while Mr Wittig said 'because they had to go through a lot of challenges in order to get the advantages that they already had before the Public Service Act was signed.'
This was possible because of their size and decades of operations, which allowed them to find ways to work around obstacles.
'We want everybody, without any limitation, to be able to do it, not just the biggest because they have the money to find a way,' said Mr Wittig.
'It has to be equal, fair, even playing field for everybody - foreign and local alike, not just a few foreign and all the locals.'
Mr Wittig stated foreign interest in telecommunications was apparent from the 2018 bid to become the third player in the telecommunications industry.
'There were multiple European telco providers that came here, but none of them won the tender, also because many of them didn't even submit their proposal. Why? Because of the 40 per cent ownership cap,' said Mr Wittig.
'40 per cent into something like telco is a massive investment, but it's not enough ownership to control your own destiny. And therefore, that was won by the Chinese.'
Now that the Public Service Act has been passed, European telecommunications companies have indicated renewed interest.
'They are very eager to return now and give it another try, and they will be dead serious about it. I guarantee you,' said Mr Wittig.
'I also believe personally they will succeed in doing this.'
SeaNews Turkey
