The Philippines has a lot to brag about these days – strong economic growth, a talented local labor force and vast improvements in governance. All of those things have made it an increasingly attractive destination for foreign companies.
But the lights could, very literally, go out on its foreign investment potential, if it doesn’t take quick action to improve its inadequate power grid.
The high cost and sketchy reliability of electricity supplies in the Philippines are now the main deterrents to investing in the country, according to foreign business leaders, who see the problem as a persuasive reason to invest elsewhere.
“Power is the biggest problem we have right now, both in terms of supply and price,” said Dong Joo Kim, chief finance officer at Phoenix Semiconductor Philippines Corp., a Korean firm that manufactures components for Samsung in the Philippines.