AKLAN: THE PLACE TO INVEST*
*A paper presented during the
Aklan Investment Forum held on July 17, 2015, Grande Royale Restaurant, Andagao, Kalibo, Aklan.(last of
three parts)
But the issue of low productivity
has been plaguing the local coconut sector for decades and Aklan, which now
only accounts for 4 percent of the country’s annual coconut production, has not
been spared from this. There has been very limited effort made to reverse this.
There has been no massive replanting and fertilization of coconut farmlands. It
is estimated that around 14 percent of the country’s coconut trees or 44.8
million trees produce little or no yield. Here in Aklan coconut occupies the
largest area among major agricultural crops, so it’s a product that could be
more actively developed.
One agri product that I
particularly like is abaca because 35 years ago I was manufacturing rope made
of abaca: Manila hemp as it was called. It’s a great fiber, very strong and
manipulable. All kinds of products can be made from it. Pina, too, fits into
this area. A beautiful cloth, both grow well here. Then, there are food
products like banana, mango, and others. That are ripe (excuse the pun) for
greater development, both to grow and to process.
To attract more tourism and
agriculture investments Aklan needs to foster a business investment that is
conductive to business. And in this regard I’m glad to note that Kalibo,
Aklan’s capital, ranks well in the National Competitiveness Council’s (NCC)
annual Cities and Municipalities Competitiveness survey. In fact in 2013,
Kalibo was cited as the third most competitive municipality in the Philippines,
behind Daet in Camarines Norte and General Trias in Cavite.
The 2014 Cities and Municipalities
competitiveness Index (CMCI) ranked local government units (LGUs) based on 3
main categories: economic dynamism, government efficiency, and infrastructure.
Economic Dynamism scores were
based on data on the size and growth of the local economy. The number of
business registrations in Aklan has grown by nearly a third from 2011 to 2013.
For the first 3 months of 2014 business registrations in the municipality
already reached 1, 900, accounting for more than two-thirds of the total
registrations in 2013. The total gross sale of registered firms in 2013 were up
by nearly 60 percent from 2011 while the total number of employees in the municipality
increased by a third to 7, 324 in 2013 from 5, 336 in 2011 providing that you
can be successful in doing business here. The local business are flourishing
and increasing in number. As a result their contribution to the national
coffers has been growing tremendously over the years.
Government Efficiency scores were
based on data and transparency scores, local taxes and revenues, business
registration efficiency, investment promotion, compliance to national
directives, and delivery of basic services. Aklan topped this category in 2014.
Infrastructure scores were based
on data on existing road network, distance from city/municipality center to
major ports, Department of Tourism-accredited accommodations, health
infrastructure, education infrastructure, basic utilities, infrastructure
investments, ICT connection, ATMs, and public transportation. Aklan fared well
in terms of availability of public utilities (1st), health infrastructure
(2nd), education infrastructure (11th) and number of DOT-accredited
accommodations (13th).
But aside from tourism and
agriculture, there are other sectors that could drive Aklan’s growth. Among
which is the business process outsourcing-information and communications technology
(BPO-ICT) sector which is considered as among the Philippines’ most dynamic
sectors today. Both public and private
administrations have been implementing programs aimed at honing this province’s
ICT potential.
Last year the Department of
Science and Technology- Information and Communication Technology (DOST-ICT)
Office held a series of workshops in various provinces including Aklan to
promote online freelance jobs. The DOST-ICT Office said that the program is in
line with the government’s goal to produce 1.3 million jobs by 2016 in
IT-business process management.
Also in 2014 AMA Computer Group
through its Chief Operating Officer Arnel Hibo and Aklan officials led by Gov.
Miraflores and Congressman Haresco signed a Memorandum of Agreement to build an
AMA branch and a call center in Kalibo, Aklan. According to AMA, Aklan has been
producing enough graduates who are proficient in English. The province has also
vital infrastructure (Kalibo International Airport) and efficient internet
connectivity which are key prerequisites in setting up a call center. The call
center facility, when completed, will be the first in the province.
Aklan could be the next Cebu,
Davao, Bacolod, or Clark and be among Tholons’ Top 100 Outsourcing Destinations
in the world. Sitel, Teletech, Cognizant, Telstra, ADP, and DTSI are among our
clients and also among the most successful ICT-BPO companies today. They might
just invest here in Aklan in the near future.
The Philippines’ ICT-BPO
industry is definitely booming and Aklan must not be left behind. The
provincial government must ensure that Aklanons are equipped with the necessary
skills. This can be achieved by increasing the national budget for
Training-for-Work (TFW) programs that adequately provides college graduates
with the skills that make them more employable, skills that are in line with
what companies need. These TFW programs are not just BPO-centric, but also
cover other high-growth industries such as manufacturing, electronics, and
tourism, another major job- and livelihood-generating sector here in Aklan. I
suggest that Congressman Haresco pushes for the expansion of the TFW budget in
the nest national budget hearing.
Aklan has skilled manpower, an
attractive business environment, a transparent local government, and vast
natural resources. It is definitely heading in the right direction and
undoubtedly has the potential to become one of the country’s major business
hubs in the near term.
Thank You. /MP
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