Monday, February 2, 2015

Philippines Carnage Scaring Away Investors



A bloodbath in the southern Philippines has placed at risk billions of pesos in potential investment.

At least three foreign firms looking to partner with local businessmen have put investments on hold after a deadly clash between Philippine forces and Muslim rebels.


The botched anti-terror operation on January 25 left 44 police commandos dead in the southern island of Mindanao, along with at least 11 rebels.



The value of investments on hold due to the fighting, in the real estate and agriculture sectors, is estimated at "billions" of pesos.

Malaysian businessmen due to arrive on Monday to inspect sites in Cotabato city have cancelled their trip. The group was looking to build small hotels and department stores.

Jordanian businessmen looking to invest in up to 50 hectares (123 acres) of banana farms left abruptly on Sunday without finalising a deal, he added, while Singaporean and Malaysian partners seeking to replicate their mini shopping mall business in Johor Baru said they were postponing their investment.


Philippine laws prohibit foreign nationals from owning a majority of local businesses.

The firefight between police commandos and Muslim rebels on January 25 broke a long-standing ceasefire and endangered a peace treaty signed in March 2013.

Agence France Presse


 

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