The Philippine Star

Phl-New Zealand ties gaining strength

- By AIMEE SHAW

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.”

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