Powering Up The Economy: Tackling High Energy Prices To Attract Foreign Investments

In a recent development, Thailand proudly unveiled a staggering $4.54 billion investment commitment from four Japanese car manufacturers, including industry giants Toyota Motor, Honda Motor, Isuzu Motors, and Mitsubishi Motors.

Tackling High Energy Costs to Spark Economic Growth – A Call to Action for the Philippines in the Global Investment Arena.

This significant investment is earmarked for the production of electric vehicles, aligning with the global shift away from combustion engines in the fight against climate change. Notably absent from this windfall was the Philippines, underscoring a critical issue that has been hindering the country's economic growth — high energy prices.

Mr. Lito Gagni, in a compelling column recently published in the Business Mirror, highlights the adverse impact of the Philippines' exorbitant electricity costs on attracting foreign direct investments (FDIs).

He emphasizes that the country's elevated energy prices serve as a deterrent, preventing the influx of investments that could catalyze job creation, revenue generation, and poverty reduction.

Comparing the Philippines' energy prices to that of Japan, Gagni reveals an alarming reality: the Philippines surpasses even Japan in energy costs, making it less attractive to potential investors.

With rates soaring at 18.1 US cents per kWh compared to Japan's 17.9 US cents per kWh, the country finds itself at a disadvantage in the competitive landscape of ASEAN nations.

Gagni argues that while the government has made strides in reducing bureaucratic red tape, the high cost of electricity remains a formidable obstacle. He calls on the Marcos administration to focus on addressing this issue, asserting that sustainable economic growth hinges on investment-driven strategies rather than consumption-led ones.

The veteran editor contends that the Philippines stands out in many aspects that appeal to investors — an English-speaking population, hospitality, a compassionate community, and a youthful labor force.

However, the stumbling blocks of bureaucratic impediments and soaring energy prices put the nation at risk of becoming an investment pariah in the region.

Gagni proposes a comprehensive examination of the energy sector to pinpoint areas where costs can be curtailed. Urging the government to identify and alleviate the "bottlenecks" hampering investment, he stresses the need for a concerted effort to make the country more attractive to potential investors.

As the nation grapples with this economic conundrum, Gagni urges the government to prioritize resolving the energy price issue in the New Year. Not only does this problem deter foreign investments, but it also stymies the growth of local enterprises grappling with the same challenges.

In conclusion, Gagni's column serves as a poignant call to action for the Marcos administration to reassess the energy landscape.

By mitigating the high costs of electricity, the Philippines can position itself as a prime destination for foreign investments, ushering in a new era of economic growth, job creation, and prosperity for its citizens.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem