Philippine execs turn more bullish on economy

President Aquino(second from left) at a luncheon conference with Philippine businessmen at Malacañang presidential palace in Manila on September 17, 2010, together with Finance Secretary Cesar Purisima (right). According to the head of the Makati Business Club, Filipino business executives are more upbeat about the country’s economic prospects in 2012, with about 81 of them expecting to see higher investments approved by investment promotion agencies this year. AFP PHOTO/JAY DIRECTO

Filipino business executives have turned more upbeat about the country’s economic prospects this year and, according to the head of the Makati Business Club, the Aquino administration’s drive to impeach Chief Justice Renato Corona has contributed largely to it.

In its biannual Executive Outlook Survey, the umbrella organization of the country’s biggest corporations, said that eight out of 10 senior business executives believed that gross domestic product growth would be better this year.

This view offers little surprise since the local economy grew by only 3.7 percent in 2011 due to the government’s decision to tighten its purse strings as it sought to clean up processes it said were prone to corruption.

“What we’re seeing here really is a surge in confidence in the business community and this is due to a large degree to the impeachment trial,” MBC chairman Ramon del Rosario Jr., a staunch supporter of President Aquino, said in an interview with the Inquirer.

“What we really want to see is for people in government to be made accountable, and I think we’re seeing that now,” he noted, adding that the impeachment trial—though poorly executed by the House prosecution team—was “an important first step” toward making the country experience inclusive economic growth.

The MBC—formed in the early 1980s at the height of power of the Marcos regime—has been a staunch backer of President Aquino and has cheered his administration’s decision to impeach the Supreme Court chief, an appointee of former President Arroyo.

According to the MBC, about 81 percent of polled business executives also expected to see higher investments approved by the country’s investment promotion agencies this year, compared to the P757.3 billon registered last year.

“Businesses are more bullish now compared to the 76.1 percent of respondents who expected higher investments in 2011,” the group’s paper said.

The MBC pointed out, however, that business sentiment in terms of exports—the country’s main source of foreign currency along with remittances from overseas Filipinos—was dampened by the 6.9-percent drop in merchandise exports to $48 billion in 2011.

“Almost 41 percent of respondents believe exports will remain at the same levels in 2012 as the previous year,” it said.

More importantly, however, the MBC survey showed that more firms were on “hiring mode” this year, with 61.3 percent of respondents planning to expand the size of their workforce, compared to only 37.3 percent of respondents in 2011.

More companies also plan to make additional investments in 2012 as 63.4 percent of respondents’ plan to make more investments compared to only 56.7 percent in 2011.