MANILA, 24 May 2005 — Foreign Secretary Alberto Romulo yesterday urged local companies to be prepared to compete as more American companies are looking for opportunities to outsource services.

In a speech at the official launch of the Philippine Coalitio n for Services Development and Promotion Conservatory in Manila yesterday, Romulo noted that on April 21, more than 50 US services firms gathered at the Philippine Consulate in New York City to attend a half-day conference on “golden opportunities” in outsourcing to the Philippines.

“The heavy turnout was welcome but unexpected. There was a good mix of attendees consisting of firms from banking, finance, and communication. Included were those in the upper echelons of US businesses such as Citigroup, JP Morgan Chase, MCI, John Goldman & Co., to name a few,” he told the gathering.

Romulo said the opportunities from growing global services trade are real. Citing records of the World Trade Organization, he said growth in trade in services has grown faster than trade in goods, accounting for more than 60 percent of global economic output and employment — one-fifth of the world’s total trade.

“Notably, the Philippines is in the middle of these global developments. Services is now the largest sector in the Philippine economy, accounting for 50% of its GDP, amounting to more than 500 billion pesos.

“Services employ at least 42% of the total labor force and have been the constant recipient of most of the country’s foreign direct investments.

“Doubtless, the services sector now represents the fulcrum for our country’s economic growth and development,” Romulo said.

However, he warned, the local industry needs to be proactive because the opportunities are not being offered on a silver platter.

“There is no discounting that the total global foreign direct investment pie is getting smaller. Countries are now finding themselves in an environment of increasing competition. While we are assured successes today, we cannot say the same for tomorrow. We have to respond, and we have to respond effectively soon,” he said.

“Relentless competition is a looming threat. We must acquaint ourselves with the challenges that are unique to the entire services sector,” he said, noting that other countries such as India are also in the forefront of the outsourcing market.

Kofi Annan’s Visit

Prior to his speech, Romulo yesterday issued a press statement on his recent official travel to New York and Washington D.C. and said United Nations Secretary-General Kofi Annan has confirmed his acceptance of the invitation of President Gloria Macapagal Arroyo to visit the Philippines this year.

Romulo spoke at the UN, where he said the Philippines went along with the consensus for a peaceful solution to the issue of nuclear proliferation on the Korean Peninsula.

He also pushed for inter-faith dialogue and that the Philippines will co-sponsor the regional Interfaith Dialogue Initiative to be held in Bali, Indonesia in July.

Romulo said he briefed Annan on the progress of the peace negotiations between the Philippine government and the separatist Moro Islamic Liberation Front (MILF), which is being brokered by Malaysia and supported by the US government.

In the US capital, he said he met with Secretary of State Condoleeza Rice, and also with Attorney General Alberto Gonzales, National Intelligence Director John Negroponte, and other senior officials, including USAID Director Andrew Natsios and Veterans Administration Deputy Secretary Gordon Mansfield.

“In Washington I received assurances of continued support for our war against terror and defense reforms, support for our peace process, particularly development funding for conflict and post-conflict areas, expressions of confidence in our fiscal, economic and good governance reforms, commitments of strong support for the cause of our veterans, great interest in trade and investments in the Philippines, and numerous reiterations of the importance that the United States government and the American people give to our strategic relationship,” he said.

He further said Secretary Rice was receptive to his invitation to visit Manila.

New Ambassador

Romulo also confirmed yesterday the nomination of Cameron Hume as the next US ambassador to the Philippines.

Romulo, however, stressed that the appointment of Hume had yet to be submitted by the White House to the US Commission on Appointments. He said the Philippines has not objected to the appointment.

Hume was special adviser to the permanent US representative to the United Nations and served multiple assignments overseas prior to his appointment as US ambassador to South Africa. (Additional input from Inquirer News Service)