DEPARTMENT OF FOREIGN AFFAIRS 
P R E S S  R E L E A S E
www.dfa.gov.ph                                                                             2330 Roxas Blvd., Pasay City, Philippines                                                                        Tel. No. 834-4000 


SFA-AGR-030-07                                                                                                                                                            19 January 2007
InfoTech emerging as further possibility for RP-Croatia partnership 

19 January 2007 – Philippine Ambassador in Austria Linglingay F. Lacanlale reported to the Department of Foreign Affairs that the Philippines and Croatia could further explore avenues of trade in the information technology (IT) sector of Croatia, aside from tourism and construction of hotel/leisure facilities. 

Trade and Investment Promotion Agency Director Slodoban Mikac recently announced that Croatia is still lacking in investors in big commercial projects. “The Agency monitors the markets in English-speaking countries like the Philippines,” he said, adding that Croatia will "be increasingly oriented towards medium and small investments, both local and foreign."  

Ambassador Lacanlale stated that according to business forecast reports in Croatia, there would be an increased requirement for skilled, English-speaking IT professionals due to the growing IT industry in telecom, the government, and in private home users in Croatia. 

The "e-Croatia" initiative of the government of Croatia is aimed to complete the computerization of the education systems and networking of government systems and bring key services like health and justice on­line.  

The total size of the Croatian IT market is expected to increase from US$ 672 million in 2005 to around US$ 985 million in 2010, with software and services growing on the back of a steady rise in private sector investments and consolidation. 

Internet penetration is still relatively low in Croatia, with only an estimated 230 private Internet users per 1,000 among the Croatian population. 

“While Croatia has a small labor force of 1.71 million, it is of high quality and professionalism,” Director Mikac stated. 

World Bank data show that it takes 12 procedures and 49 days to start a business in Croatia, compared with the European average of 8 procedures taking 43 days. Reforms related to its EU accession process will improve these figures and lessen the incidence of corruption as the decade ends.  END

/jay


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