LOWER LABOR COST IN PHILIPPINES THAN CHINA

 

Here's some news about wage and labor costs comparison of the Philippines and China: http://positivenewsmedia.net/

JETRO report boosts Manila over some Chinese cities

MANILA, Sept 1 (PNA) -- A recent comparative survey of investment-related costs in the Asian region conducted by the Japan External Trade Organization (JETRO) revealed that Manila boasts of being cost-efficient specifically in terms of wages more than the key cities of Shanghai and Shenzhen which are at the forefront of China’s march to progress and industrialization.

The latest JETRO report conducted in January 2010 on 29 major cities in Asia pointed out that Manila commands a $ 130 minimum monthly wage rate compared to Shanghai’s US $ 141 and Shenzhen’s $ 139.

The rise of wages in these Chinese cities for ordinary worker-class employees can be attributed to the growing competition to secure much needed human resources.

But when ranged against wages in other Chinese regions, Manila could still be competitive as wages are in the $ 117-141 range.

The results of this survey show that Manila is still one of the best value-for-money investment destinations in the Asian region.

More than comparing its capital city with the rest of its Asian neighbors, the Philippines boasts of a generally liberalized economy particularly in the services sector where it already has considerable edge among others with the exception of India among BPO services.

Cost-efficiency then comes to mind in terms of wages over labor standard expectations ratio and lower operational costs.

With the country being marketed as a strategic business hub within the ASEAN itself, it is but natural that a sufficient pool of talents and culturally adaptable human resources prime the country in attracting foreign investments from all corners of the globe.

The country is even marketed as an alternative site for Asian investors looking for profitable returns and stable investment environment.

The Philippines strives to sustain positive investor sentiment by taking a more proactive role to fill the gaps and to cushion the challenges that lie ahead.

With the country emerging relatively unscathed during the recent global recession and with the renewed confidence of investors in the new administration, the country is more than ready to take on all investment comers especially through public-private partnerships (PPP) in boosting investment levels to unprecedented figures.

Initiatives are already in place to fast track business processing and curtailing red tape in the process would lead to a more business friendly climate and no sooner, investors will come in droves to see that the Philippines has what it takes to be at par with its even far more advanced Asian neighbors in terms of attracting investments.

The survey was conducted by JETRO’s overseas offices in cooperation with Japanese chambers of commerce and industry, local government agencies and relevant companies in each country. (PNA)
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