COMPANIES abroad, such as those in the European Union (EU), are starting to realize that it is more cost-efficient to invest in the Philippines than hire Filipino workers to work in Europe.
In a discussion with the BusinessMirror and the news outlets under the Aliw Media Group on Wednesday, EU Ambassador Franz Jessen said investing in the Philippines and hiring workers locally is a “win-win situation” for both companies and the workers.
Jessen said one such European company now operating in Davao was among the first to think about this option. He said by locating to the Philippines, the company saves on airfare allowances and does not separate workers from their families.
“I would rather that you attract foreign direct investments [FDI] so that your compatriots can work in their own country and they can create [the work here] and not go abroad and use their skills there,” Jessen said.
“In a sense it is a win-win situation. I think we are looking forward to more of that type of development in the Philippines,” he added.
The key to increasing investments, however, is infrastructure. Jessen said that, while he cannot pass judgment on whether the government’s massive infrastructure program is progressing, he can say that it is a step in the right direction.
Jessen added addressing the country’s infrastructure constraints can ease congestion in ports, airports, and even the streets of Metro Manila, which are costing billions in lost revenues due to delays and man-hours lost.
The study made by the Japan International Cooperation Agency (Jica) last year estimated that traffic in Metro Manila costs P3.5 billion daily as of 2017. This is higher than the P2.6-billion estimate made by Jica in 2012.
“That type of change, it does take a couple of years. So we have to see how they perform, longer than 2.5 years. But clearly, they have a lot of attention on the infrastructure issue. And if they do succeed, which I hope very much they will, you’ll be in for a bright economic future, there’s no doubt about that,” Jessen said.
Based on the 2016 Survey on Overseas Filipinos (SOF), the Philippine Statistics Authority (PSA) said there were 2.24 million Pinoys working abroad.
Of this number, around 6.6 percent or 147,840 are working in Europe. The largest concentration of Filipinos abroad or 85 percent are located in Asia, particularly Western Asia at 56.9 percent.
In Western Asia, the most number of OFWs are located in Saudi Arabia at 23.8 percent followed by the United Arab Emirates at 15.9 percent.