Votes of confidence for President Arroyo

Votes of confidence for President Arroyo

and the Philippines

By Abdel Aziz Dimapunong

Chancellor, Islamic Banking Research Institute

President Macapagal Arroyo with the Palace as background

Politicians in the Philippines are now busy for the coming non-presidential elections on May 14, 2007. As the elections come closer, big names in the world of investments cast their votes of confidence in this country and the administration of Her Excellency, President Macapagal Arroyo. The investments are mostly coming from the Western world, China, Japan and the Middle East.

Few days ago, the President announced one of the biggest investments in the Philippines’ economic history to be made by the world’s biggest producer of mobile phone chips, the renowned Texas Instruments Inc. This was preceded by another investments entry from the world famous investor, Prince Alwaleed bin Talal bin Abdulaziz Alsaud of the oil rich kingdom of Saudi Arabia. The Prince arrived on his private jet and left right after a dinner with Her Excellency, the President at the Malacañang Palace.

Texas Instruments will build a $1 billion semi-conductor facility in the Philippine’s Clark Freeport Zone, a development that President Macapagal Arroyo dubbed a vote of confidence in the country, and of course in her administration.

On the other hand, the Saudi Prince of Investments came only to confirm his commitment and actually signed an investment agreement with the Ayala group of companies to put up a 300-room Fairmont Hotel, a 30-suite Raffles Hotel and 189 Raffles-branded residences at the corner of Makati and Arnaiz avenues in Makati City. This place is the financial center of the Philippines.

Yet even before the two world famous investors came in, sovereign investors had also made known their investments in this country. Last January, the so-called Cebu Declaration was signed by the leaders of the 10 member Asean, Australia, China, India, Japan, New Zealand and South Korea. The Declaration urges member countries to expand the development of biofuels and other sources of alternative energy. Japan was on top of biofuels interest.

The Asean Summit

In the last Asean Summit, Japan unveiled its US$ 2 billion package to assist Asian nations develops energy saving technology and reduces the regions’ dependence on traditional fossil fuel. China likewise heralded its investments to finance five ethanol projects in the Philippines, including one that has a capacity of 150,000 liters of ethanol per day. It also announced its involvement in the development of 40,000 hectares of land for ethanol, the produce of which will be exported to China.

Texas Instruments

The expansion of Texas Instruments in the Clark Freeport Zone (CFZ) involves an investment of $1 billion. Texas Instruments is known in the electronics industry as TI. It is an American company based in Dallas, Texas, USA. It is renowned for developing and commercializing semi-conductor and computer technology. TI is the No. 3 manufacturer of semiconductors worldwide after Intel and Samsung. It is the top supplier of chips for cellular handsets. It is also the No. 1 producer of digital signal processors and analog semiconductors. Other focus areas include chips for broad band modems and PC peripherals.

Texas Instruments has always been among the Top 10 of the semiconductor sales leaders. In 2005, TI was number 3 after Intel and Samsung. According to Wikepedia, TI was listed at number 167 on the Fortune 500 as of 2006.

Texas Instruments has a long history. It was founded by Cecil Green and Erik Jonsson, Eugene McDermott and Patrick Haggerty. In December of 1941, they purchased Geophysical Service Inc., a pioneering provider of seismic exploration services to the petroleum industry. During World War II, GSI built electronics for the U.S. Army. It was in 1951 that the company changed its name to Texas Instruments.

In 1954, TI designed the first transistor radio. Also in the 1950s the integrated circuit, more popularly known as the IC, was developed independently by TI and Fairchild Semiconductor.

TI also continued to manufacture equipment for use in the seismic industry and GSI continued to provide seismic services. TI finally sold the company to Halliburton.

TI continued to be active in the consumer electronics market through the 1970s and 1980s. In 1979, TI entered the home computer market. TI was also active in the Defense electronics market in the 1970s and 1980s, designing and manufacturing airborne radars sensor systems, missiles and laser guided bombs.

Prince Alwaleed bin Talal bin Abdulaziz

Prince Alwaleed bin Talal bin Abdulaziz

Only few days ago, Saudi Prince Alwaleed bin Talal bin Abdulaziz Alsaud arrived at Villamor Air Base in the Philippines. He arrived on his private jet and he left right after a dinner with Her Excellency President Macapagal Arroyo at the Malacañang Palace. President Macapagal Arroyo has said that the decision of Saudi Prince Alwaleed to invest US dollar 153 million in hotels in Makati City was a vote of confidence in the Philippines.

The President also said that the Saudi prince wanted to put up hotel resorts in the Philippines. President Arroyo said the $153-million investment in Makati was an offshoot of her visit to Saudi Arabia last year. He kept on stressing that this investment was also a vote of confidence in her administration.

It is said that Prince Alwaleed is worth over $20 billion. The US-educated prince, 50, is a nephew of Saudi Arabia’s King Abdullah. He is founder and chairman of Kingdom Hotel Investments, which on March 8 signed a joint venture agreement with Ayala Land Inc. Ayala Land president Jaime Ayala, said the project would break ground before the end of this year. With Fairmont and Raffles, the project marks the beginning of Ayala Center’s transformation into a world-class business destination as Fairmont and Raffles represent two of the world’s biggest luxury hotel brands.

We agree with President Macapagal Arroyo that the investments that are coming from world renowned investors are votes of confidence in her administration as much as they are for confidence in the Philippines. That could only mean that there is political stability in this country.