AUSTRALIAN Ambassador Amanda Gorely, 10 months into her tour of duty in the Philippines, admits she is still adjusting to her new life.
Gorely is a career diplomat who has just been promoted as an ambassador. Her choice of the Philippines as her first country of destination as Australia’s top diplomat also represents a major shift after having been previously assigned in First World countries.
Gorely has been in the Philippines before, but there have been things that she admits need time to getting used to, like the country’s humid weather and the Metro Manila traffic.
She said there are correct and inaccurate perceptions about the Philippines for those who have actually not set foot yet in the country.
“What has been correct is the thing most people talk about the Philippines in a bad way is the traffic. It is pretty bad. I have got very good drivers, and I have to learn to be patient and I try to use the time like everybody else. Just to catch up on the e-mail and read the newspaper, so I do not feel like I am wasting my time. I work while stuck in traffic,” Gorely said.
Beyond the traffic mess
The Aussie diplomat said Australians see the country as a good place to invest. Still, she said the ceiling will be tremendously higher if concerns over restrictions on foreign ownership are addressed.
“Definitely, the Philippines is on the radar. Australian companies are already here, and in quite significant numbers. About 250 or so are operating here, and that goes from the really big companies to medium-sized and very small family companies. A couple of big mining companies are working here, as well,” Gorely said.
She added, “There are some issues around foreign investment, which I hope the government will address to make it easier for foreign companies to set up here, including reducing the constitutional ownership stake, which they said they will do, and that will make a difference to the ability of companies to come here and invest.”
Gorely also commended the position of the current government on mining and its stricter regulation, but urged “transparency” for the sake of Australian mining companies that are legally operating in the Philippines.
“The approach of the administration has caused some issues with the Australian mining companies here. They are operating on a business-as-usual set-up at the moment, but the whole process and some of the outcomes of that have caused uncertainties. We want the Philippines to implement the law in a transparent way and a fair way, so companies have certainty in their operating environment,” Gorely said.
She then added, “We have no problem at all with the Philippine government seeking to ensure mining companies are environmentally responsible. They treat the communities well and contribute to the development. I am absolutely confident that the Australian mining companies are doing all of those things.”
Advantage Philippines
Gorely also allayed fears about the rising workers salary here in the country, explaining the Philippine labor force remains one of the biggest incentives for companies to start operating in the country.
Furthermore, despite a depreciating peso and instability in the stock market, Gorely forecasts positive economic results for the Philippines, if ever President Duterte’s administration will be able to fulfill its 10-point economic agenda.
“The Philippines is still competitive from a wage point of view. I have heard that wages are going up in other markets, in parts of India, which is competitive with the Philippines in the voice-services industry, and wages in China are increasing, as well, but at the moment certainly when you compare Philippine wages with Australian wages, there are clearer advantages in doing certain functions here,” she said.
Commenting on Duterte’s first 100 days in office, Gorely said he is still in the honeymoon phase and that much of the economic growth of recent months can still be attributed to the past administration.
Gorely said she hopes the promise of an inclusive economic growth will be fulfilled in the current government.
“There is the perception that it is a very poor country. Of course, it does have a very high rate of poverty but there are also very highly developed areas in the Philippines. I think a lot of people who come here are surprised at how this sort of area, I guess, has a modern state of the art kind of development, so it is a country of contrast,” she said.
She added, “I think, the momentum is still positive in the Philippines, unless there will be some potential external shocks or some significant development here, which have a big impact on investor confidence,” Gorely added.
Evident by the Jollibee franchises opening up and the news of Swedish furniture store Ikea putting up its first shop in the Philippines, Gorely said the trickling down of the economic growth to the grassroots level will happen sooner than expected.
Image credits: Jimbo Albano