Foreign Ownership Issues

[Malcolm Graham]

Well they've opened up the banking sector for full foreign ownership.  So that's a start.  Sort of foot in the door.

 

http://www.gov.ph/downloads/2014/07jul/20140715-RA-10641-BSA.pdf

[Methersgate]

Well they've opened up the banking sector for full foreign ownership.  So that's a start.  Sort of foot in the door.

 

http://www.gov.ph/downloads/2014/07jul/20140715-RA-10641-BSA.pdf

 

This is the result of a very specific bit of lobbying by Maybank.  

[Methersgate]

I just read an article in the paper today. They are discussing charter change to allow more outside land ownership. I have no doubt that the rich are a big influence so that they can keep the power to themselves, but the article referenced some wording of the charter that made me stop and think a bit. The charter refers to "protecting the patrimony" of the Philippines. I can see how if outsiders went out to the proviences where everyone is dirt poor and offered large sums of money the small farmers (pick your definition of land owner) would most likely sell out in a heart beat and leave nothing to their family. Like I said, it just made me stop and think a bit.

 

And what do you think is happening right now?

The farmers cannot manage on the land they have - they cannot afford to mechanize, but they have to spend a fortune on Roundup and on Monsanto's GM rice, or they get no crop. And seven kids to feed..

A family member gets ill, there is a hospital bill to pay and a loan is needed - the local bank  or a local money lender is happy to oblige - for a mortgage - and so the family farm is lost and another family ends up landless in a squatter area.

It does not need foreigners to do this.

 

My father in law is a dirt poor rice farmer in Mindanao - I KNOW what I am talking about. 

Edited August 19, 2014 by Methersgate

[alsuave]

 

Side note. I've read that Singapore actually encourages foreign entrepreneurs to move there and start businesses. That's smart

 

True, but do they have land available in Singapore for sale? Agree they are smart in letting foreign owned businesses in. But I am sure you recall the uproar in the 70's and 80's in the states when the Japanese were coming in and buying up all the property and big malls in the cities.

 

Scott, you are correct, of course. But that doesn't make it any less frustrating for an expat, who sees business opportunities all over the place, and can't do anything about it. The laws are unnecessarily strict on foreigners, and even if I could get around that, the business climate is such that I wouldn't feel comfortable owning a business here anyway. The PI is ripe with opportunity. It has a lot of things going for it. But I think it's missing out on a lot of young entrepreneurial talent from overseas, that could help bootstrap the economy, because of dumb laws and high corruption.

 

Who wouldn't want to live (and spend money) in this beautiful country? The people who are likely to spend the most money by starting businesses and creating jobs, that's who.

 

I know expats who wanted to start a local business. But since that's impossible at worst and a pain in the ass at best, they instead figured out a way to make their business work entirely online. It's not optimal, but it works. And guess what, no money got reinvested into the PI and no for Filipino jobs were created. Great job Philippines! This hurts everyone, but it hurts Filipinos a lot more than it hurts foreigners.

[scott h]

But that doesn't make it any less frustrating for an expat, who sees business opportunities all over the place

 

Spot on Alsuave.......example on point. We had a drain clog up, called the plumber to snake it. He used the ole hand jam, poke a hole in the clog and off he goes. I made some inquiries about the roto rooter type machine plumbers. The only folk that use them, clean large factories and malls and such. I floated the idea of a mobile roto rooter drain cleaning business for residential areas. (two guys in a truck, did this for a bit working my way through college. 30 bucks a drain in the early 80's). Absolutely zero interest lolol. They all would love to INVEST in a business like that, but to actually get their hands dirty?? no way :1 (103):