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Uncertainty and apprehension gripped the business community immediately after President Duterte was sworn into office in June due to the “changes” that had come.
From controversial rhetoric against known allies, conflicting policy pronouncements, alleged extrajudicial killings, to this administration’s pivot to China despite existing territorial disputes, the “changes” were then feared to derail key reforms and slow down economic growth.
But the latest numbers are telling a different story.
Trade Secretary Ramon M. Lopez, for one, expects the local economy to grow by 7.1 percent in the last quarter of 2016 and into 2017.
“From all indications, we continue to have a robust economy with a strong demand, lower unemployment rate. And with more people getting employed, you can expect a stronger spending power. The momentum is here and leading into 2017,” Lopez explained.
As of end November, the value of investments approved by the BOI rose by 35.5 percent to P324.5 billion.
It was estimated that the agency’s investment approvals will grow by as much as 20 percent for full year 2016.
Net inflow of job-generating foreign direct investments likewise increased by 25.3 percent in the first nine months of 2016 to $5.9 billion from the $4.7 billion recorded a year ago, reflecting investors’ confidence in the country’s economy.
Meanwhile, merchandise exports finally recovered in September to end 17 consecutive months of year-on-year decline.
Preliminary data from Philippine Statistics Authority (PSA) showed that outbound shipments of local goods grew 5.1 percent to $5.211 billion in September from $4.96 billion a year ago.
“I think this administration is off to a good start,” Lopez added.
The trade chief added that despite the “political noise,” foreign investors continued to flock to the Philippines.
Local businessmen were similarly placing their confidence in the Duterte administration.
“If you talk to investors, they are placing full confidence and trust in the Duterte administration because they’ve been getting assurances from our President himself. We tell them, do not listen to the rhetoric, understand the context, and look at the long-term economic fundamentals of the Philippines. We tell them, don’t get affected by the political noise. We haven’t changed any policies that may affect business,” Lopez stressed.
“President Duterte is not anti-investor. In fact, during his talks with the investors, he would personally assure investors that if they encounter any people who will make it difficult for them to do business in the Philippines, he will deliver their papers to the proper agency for processing. He is guaranteeing to investors that everything is in order,” he added.
And even the local business community seems to agree.
Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc., is bullish about prospects next year, noting that there “has been an improvement in a lot of things.”
“Foreign direct investments are increasing noticeably under the Duterte administration and despite all negative things that came out, the latest GDP growth was at 7.1 percent and I have a good feeling that we can even easily hit a GDP of 7.5 percent next year,” Ortiz-Luis told the Inquirer.
“There is a huge potential for increased trade and investments from China next year and even in tourism as well. Since the President’s state visit to China, there has not been a month that we did not receive delegations from China, all looking at the things they can do here. I think there’s a delegation coming in twice or even thrice a month,” Ortiz-Luis added.
The Philexport official opined that this “administration will do better” as seen in its initial performance over the past six months.
“We see investments fast coming in and these are real and concrete investments that create the jobs. We’re feeling optimistic about the Duterte administration,” Ortiz-Luis said.
George T. Barcelon, president of the Philippine Chamber of Commerce Inc. (PCCI), admitted that there were concerns raised earlier which may have triggered some uncertainties.
However, these had not been material enough to spook investors.
The Duterte administration, in fact, has managed to bolster investor confidence in the country with its aggressive drive against crime, corruption and drugs.
The Makati Business Club, for its part, is banking on the fulfillment of the administration’s 10-point economic agenda, with the group “looking forward to a more aggressive rollout of the projects and programs that will ensure that that country and our people will feel the impact of the agenda through more jobs, a more enhanced climate for doing business and more globally competitive Philippines,” said its executive director Peter Angelo V. Perfecto.