Business leaders “still optimistic” despite criticisms against Duterte
The Philippine Chamber of Commerce and Industry is more concerned on the economic policies of President Rodrigo Duterte than his being foul-mouthed.
In a forum in Manila, PCCI President George Barcelon said their group was "still optimistic" with Duterte despite criticisms against him by some groups locally and internationally with the way he speaks.
He noted Duterte’s economic planners are working on some important issues, like tax reforms.
He said Duterte "deserves a good grade" in trying to address crimes and illegal drugs.
"Our economic fundamentals are still very strong," he added.
Sergio Ortiz-Luis, president of the Philippine Exporters Confederation, Inc., former chairman of PCCI, expressed belief Duterte's pronouncements have "no connection" with what is going on in the stock market and depreciation of the Philippine currency to the US dollar.
He believed investors were not concerned about the alleged increasing number of extrajudicial killings "for as long as their profits won't be reduced."
He also shrugged off the depreciation of the peso, saying that the belief before that "a strong peso is a strong Republic" is passe.
Ortiz-Luis noted a huge number of Filipinos, particularly on the middle class who are dependent on remittances from their relatives abroad, the business process outsourcing and the exporters, among others, are benefiting from the peso depreciation.
However, the PCCI officials have raised concern on some of the economic policies being pushed by the Duterte administration, such as the moratorium for two years of the conversion of agricultural lands to non-agricultural lands, across-the-board P125 wage increase, end of contractualization, and on the audit on some mining projects.
Ortiz-Luis said the plan to suspend the conversion of agricultural lands has made investors to be "on a wait-and-see attitude," citing that he knew of a local businessman who was supposed to partner with a foreign investor. But because of the planned moratorium, the foreign investor has a second thought of pouring in his investment here.
Donald Dee, president of the Employers Confederation of the Philippines, warned of the negative effects on the economy if the proposed P125 across-the-board wage increase would materialize as being pushed also by an "undersecretary" of Duterte's Cabinet.
If this happened, he said this could reduce the country's gross domestic product by 2 percentage points.
On ending contractualization, Ortiz-Luis said it was "only good to hear," but in reality it would be hard to implement because there are sectors where workers could notbe made as regulars.
Benedicto Yujuico, PCCI chairman said Duterte's pronouncements could also somehow have effect on investors.
He said there were investors who were "looking for stability" and they rely on what the country's leaders have been saying.
But he welcomed Duterte's pronouncement that he would open up the Philippines to other countries, such as Russia.
Yujuico, who had been to Russia, said that he knew some Russians were interested in having business in the Philippines.
However, he also warned of the possible effects on business if Donald Trump would win the US elections.
He said the Philippines should be ready if Trump would make true his promises which could affect the BPO industry. "We have to prepare for that eventuality," he stressed.
Trump has said that he would bring jobs back to the US. A number of American BPO companies are operating in the Philippines. Celerina Monte
