Business upbeat about economic team

The election of President Duterte was met with apprehension by the local business community, many of whose leaders were rooting for rivals of “known quantities.”

But a few days after the economic managers of the new administration assumed office and had the opportunity to communicate their agenda to their stakeholders, the skepticism and anxiety were replaced with reassurance and optimism.

For the most part, this optimism is due to the fact that Duterte’s economic managers have managed to convince the business community that the administration will focus on the execution of key policy thrusts that were neglected by the old dispensation.

At the same time, the business community’s familiarity with many of the Cabinet appointees is a source of comfort for its members.

“The head of the economic team, [Carlos] Dominguez is a businessman. So he understands what the economy needs,” said Philippine Chamber of Commerce and Industry (PCCI) President George Barcelon about Duterte’s finance secretary.

“At the same time, he’s been in government before, so that’s a good thing,” he added, noting that Dominguez owns businesses like the Marco Polo Hotel in Davao City and served as agriculture secretary in the administration of President Corazon Aquino. He is also a former president of flag carrier Philippine Airlines.

Barcelon said the new finance chief had made all the right pronouncements on the changes he would like to see in his department’s revenue agencies—the Bureau of Internal Revenue and the Bureau of Customs.

Traditional route bypassed

Most importantly, Dominguez bypassed the traditional route of newly appointed economic chief in the past by going straight to small businessmen early to hear their concerns, ahead of the usual path of wooing captains of industry first.

This was evident when Dominguez invited PCCI—the country’s largest business organization composed mainly of small and medium enterprises—to have a prominent role in consultative meetings with the business community in Davao City.

In contrast, the big business-oriented Makati Business Club played a relatively minor role in the event.

But even big business is optimistic about the economic managers of the Duterte administration.

Perry Pe, Management Association of the Philippines (MAP) president, said he was especially hopeful about the cohesive policies that would  be pushed forward by the triumvirate of Dominguez, Socioeconomic Planning Secretary Ernesto Pernia and Budget Secretary Benjamin Diokno.

“What’s clear is that these gentlemen will lord it over the administration’s policies as far as the economy is concerned,” he said.

Pe noted that although Mr. Duterte had conceded to not being familiar with the economy, he was thoroughly familiar with the personalities and characters of those he chose to help him run it.

“It’s very important that the President fully trusts you,” Pe said. “And it’s clear that he trusts these Cabinet men. Even the 10-point economic agenda was prepared by them, and you can see that the line of thinking is more or less the same.”

The MAP chief added that he felt “very comfortable” about the direction Duterte’s economic managers were charting, especially with regard to issues that remain unresolved from the previous administration like the country’s deteriorating infrastructure.

Friendly to business people

“The [Department of Transportation] is a tough job. But [Transportation Secretary Art] Tugade is friendly to business people. He looks like an implementor and that’s what we need,” Pe  said.

He was also hopeful that Energy Secretary Alfonso Cusi will make significant progress in improving the Philippine energy situation, especially in the Visayas and Mindanao, some areas of which still suffer outages because of insufficient generating capacity.

“Secretary Cusi has good business sense,” the MAP chief said. “It’s good that we have a businessman running the Department of Energy because the issue of power has become more business-oriented in recent years. It is a major economic issue.”

Benefit of the doubt

Even Mr. Duterte’s more controversial appointments are being given the benefit of the doubt by the business community.

Francis Chua, head of the Philippine chapter of the International Chamber of Commerce, said he was confident that the new team could execute much-needed projects and prove skeptics wrong.

In the case of incoming Public Works Secretary Mark Villar, for example, Chua said he was optimistic that the scion of a family whose wealth was anchored on real estate would put the larger interests of the nation above his own.

“These are good appointments, and they deserve to be given a chance,” he said.

Amid this optimism, however, the business leaders pointed out that none of them expected any miracles, given the magnitude of the challenges facing the new administration. But the open lines of communication between the administration and the private sector were a source of encouragement for the latter.

Consultation good sign

“The fact that they’re consulting the business community is a very good sign,” PCCI’s Barcelon said, explaining that there were times in the past when the businessmen felt marginalized and some agencies looked like they were operating in a vacuum. “I hope this administration takes us in as a partner. We would like to collaborate with and support them,” he said.

Pe said he was certain that Duterte was a hands-on President.

“I think you will see that in the economic managers as well.”

“They’re experienced,” he added, comparing the present team to the inner circle members of the previous administration, who were initially criticized for their inexperience. “For sure, there will be no criticism that this is a   ‘student council.’” TVJ

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