Phl-New Zealand ties gaining strength
New Zealand’s relationship with the Philippines is in great shape, Ambassador David Strachan said.
“I think the political relationship between our countries is in excellent shape… in the last five to seven years there has been an enormous increase in people-to-people contact,” Strachan said.
Filipino- born New Zealand trade and enterprise commissioner Hernando Banal II, who has previously spent a lot of time in New Zealand as a contract worker said the two countries’ relationship has come a long way.
“In my experience – 15 years ago – not many Filipinos would have known where New Zealand is. It’s quite common that they would think of New Zealand as part of Europe for some reason,” Banal said.
“During that time if you mention Anchor milk or Anchor butter they would suddenly connect that to snow- capped mountains, green fields, meadows and the dairy industry to visualize New Zealand,” Banal said adding that “thanks to the Internet, globalization and a certain Kiwi film series, Filipinos are now more aware of New Zealand.”
Tourism
Philippine- New Zealand ties are expected to grow stronger following Air New Zealand’s announcement to fly direct to Manila, starting in December.
“The thing to watch now is the nonstop air services which will have a springboard effect to inject greater momentum into the relationship,” Strachan said.
“If you look at some of the figures in tourism, there’s been a 25 percent growth in tourism flows to and from our countries,’’ he said.
Business networks
There are 20 established and active Kiwi companies in the Phillippines. These include Datacom, Steel Pencil, Fonterra, Griffins and Goodman Fielder.
Banal said the Philippines is a great option for Kiwi companies wanting to gain entry and expand into Asian markets.
“Some New Zealand companies are now realizing that the Philippines is a very strategic gateway to Asia as it is located in the middle of East Asian and South East Asian economies like China, Japan, Korea, Singapore, Thailand and Vietnam,” Strachan said.
“The business language here is English and the culture is very western- friendly, so a lot of New Zealand companies are realizing there is a good opportunity to expand in Asia,” he added.
NZ-based firms like Steel Pencil and Datacom are using the Philippines for back office operations for global customers, Banal said.
“We have Steel Pencil and Datacom. They are here riding on the flourishing BPO industry,” he said. “These are New Zealand-owned companies expanding their capacity by doing their back office productions in the Philippines,” he said.
It is estimated that around 2,000 Kiwi expats are living and working in the Philippines.
Over the last couple of years there have been two major investments from Philippine companies in New Zealand.
“Griffins was acquired by Universal Robina Corp. for about NZ$730 million, while First Pacific bought Goodman Fielder for about NZ$1.4 billion,” Strachan said.
“That’s very promising. Dynamic businesses here (in the Philippines) see New Zealand as a land of opportunity – they are investing in our country and creating jobs and using the New Zealand brand to enter other markets in the ASEAN region,” he said.
Over the next 10 years, Strachan and Banal said they would like to see more New Zealand labels and brands in local supermarkets including more confectionary, frozen meats and Kiwi wines.
Partnerships outside the dairy, healthcare and construction sectors are also flourishing.
New Zealanders and Filipinos currently work closely in geothermal, dairy, healthcare and construction sectors, but Banal said he expects to see more Filipino collaborations in the ICT and construction sectors in New Zealand.
“There has been a big jump in the number of construction workers coming from the Philippines and I can see also the New Zealand ICT sector taking in more Filipino workers.”
In terms of other sectors with potential for collaborations, Strachan said food safety and governance are likely candidates.
“What we’re (New Zealand) good at is governance and our models of governance – sustainable development of fisheries, what we do in terms of qualifications and food safety, business registration, vocational training – these are all things that are of interest to Filipinos,” Strachan said.
“Regulators in New Zealand and the Philippines over the years have got to know each other pretty well and that’s the best way to sustain trade that is business friendly,” he said.
Trade relations
Trade between New Zealand and the Philippines is worth $1.3 billion per year including services.
In 2014, trade between New Zealand and the Philippines rose 6.4 percent to $ 553 million.
New Zealand predominantly imports horticultural products including bananas, pineapples, mangoes and electrical appliances and gadgets from the Philippines. New Zealand, on the other hand, shipped large amounts of dairy, meat, forestry products, confectionary items and wines to the Philippines.
The Philippines, along with India and Vietnam, is increasingly seen as one of the three most promising economies in Asia.
Aside from work opportunities, New Zealand’s environmental conditions make the country an attractive option for Filipinos looking for a holiday or to immigrate.
“If you ask Filipinos now what attracted them to New Zealand, they will say nature and the outdoors and of course the kind and welcoming people,” Banal said, adding that “I can attest to that. New Zealanders are generally very welcoming to visitors.”