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The Bright Side
By Michael Alan Hamlin
July 22, 2002

It's not easy to find cheerleaders for the Philippines outside of government. So when I do come across one, and after I've picked myself up, I try to help spread the message. The past week or so, recent remarks made by Robin Martin, Intel Manufacturing general manager in the Philippines, have been circulating on the Internet. I'm sharing them in hard copy, below, with some minor editing.

"Filipinos (including the press, business people and myself) tend to dwell too much on the negative side and this affects the perception of foreigners, even the ones who have lived here for a while (MAH: Very true.). The negative perception of the Philippines is way disproportionate to reality when compared to countries like Columbia, Egypt, Middle East, Africa, etc (MAH: Actually we're not so bad compared to quite a number of developed economies either, but let's let Martin get on with his argument.).

"Let us all help our country by balancing the negative with the positive especially when we talk to foreigners, whether based here or abroad. Looking back and comparing the Philippines today and 1995 (the year I came back), I was struck by how much our country has progressed physically. Consider the following:

1. The great telecom infrastructure that we have now did not exist in 1995. 1995 was the year the telecom industry was deregulated. Since then billions of dollars have been invested in both fixed line and cellular networks producing a system with over 5,000 kilometers of fiber optic backbone at a world competitive cost. From a fixed line capacity of about
900,000 in 1995 we now have over 7 million (lines). Cellular phones practically did not exist in 1995; now we have (a line capacity of) over 11 million.
2. The MRT, many of the EDSA flyovers (including the Ayala Avenue
flyover), the SKYWAY, Rockwell and Glorietta 4, the Fort, NAIA terminal 2 and most of the new skyscrapers were not yet built in 1995.
3. If you drive to the provinces, you will notice that national roads are now of good quality (international quality asphalt roads). I just went to Iba, Zambales last week and I was impressed that even a not so frequently traveled road was of very good quality.
4.

Philippine exports have increased by 600% over the past eight
years. There are many, many more examples of progress over the last eight years. Philippine mangoes are now exported to the US and Europe.

"Additional tidbits to make our people prouder:

1. INTEL has been in the Philippines for 28 years. The Philippines
plant is where Intel's most advanced products are launched, including the
Pentium IV. By the end of 2002, Philippine operations are expected to be
Intel's biggest assembly and testing operations worldwide.
2. TEXAS INSTRUMENTS has been operating in Baguio for over 20 years.
The Baguio plant is the largest producer of DSP chips in the world. DSP
chips are the brains behind mobile phones. TI's Baguio plant produces the
chip that powers 100% of all NOKIA mobile phones and 80% of Ericsson
mobile phones in the world.
3. TOSHIBA laptops are produced in Santa Rosa, Laguna.
4. If you drive a BENZ, BMW, or a VOLVO, there is a good chance that the ABS system in your car was made in the Philippines.
5. TREND-MICRO, makers of one of the top anti-virus software solutions, PC-cillin, develops its 'cures' for viruses right here in Eastwood City. When a virus breaks in any computer system in the world, they try to find a solution within 45 minutes of finding the virus.
6. By the end of this year, it is expected that a majority of the top ten U.S. call center firms in the U.S. will have set up operations in the Philippines. This is one area in which I believe we are the best in the world in terms of value for money (MAH: Note that he didn't say low cost.).
7. America Online (AOL) has 1,000 people in Clark answering 90% of AOL's global e-mail inquiries.
8. Proctor & GAMBLE has over 400 people right here in Makati (average age 23 years) doing back-office work for their Asian operations including finance accounting, human resources, and payments processing.
9. Among many other things it does for its regional operations network in the Asia-Pacific region here in Manila, CITIBANK also does its global
ATM programming locally.
10. This is the first year ever that the Philippines will be exporting cars in quantity courtesy of FORD Philippines.
11. The government is shedding off graft and corruption slowly but
surely. This is the first time in our history that a former president is in
jail and facing charges of plunder. Despite all odds, we are still
pursuing the ill-gotten wealth of Marcos now enjoyed by his unrepentant heirs (MAH: More impressive for me was a recent expat executive who told me he has never had a problem with corruption in customs!).

"Next time you travel abroad and meet business associates tell them the good news. A big part of our problem is perception and one of the biggest battles can be won simply by believing and by making others believe."

And making people believe is critical to establishing the momentum the Philippines needs to finally breakout and reach its potential.

(Michael Alan Hamlin is the managing director of consultancy TeamAsia and the author of three books on Asian economies and companies. His latest book is Marketing Asian Places, of which he is a co-author (Wiley, 2001). He can be e-mailed at mahamlin@teamasia.com.)
Copyright © 2001 Michael Alan Hamlin. All Rights Reserved.


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