WHOEVER wins the elections in May is unlikely to affect foreign investments in the Philippines, according to the government’s Investor Relations Office (IRO).
The IRO quoted John F. Maisto, a retired US ambassador who heads the US-Philippines Society (USPS), as saying that “any incoming administration is expected to keep the good economic policies,” at the Philippine Business and Investment Forum (PBIF) held in New York City on March 3.
Maisto is a former director of the US Department of State’s Office of Philippine Affairs and had also served at the US Embassy in Manila.
Formed in 2012, USPS is “a private sector initiative organized to broaden and expand interaction and understanding through research in the areas of security, trade, investments, tourism, the environment, history, education and culture between the United States and the Philippines,” according to its website.
It is cochaired by former US Ambassador to the Philippines John D. Negroponte and Filipino business tycoon Manuel V. Pangilinan.
For Maisto, “all of the presidentiables seem to embrace the same overall economic agenda of the Aquino administration, except that their styles in pursuing the same goals could be different.”
Attractiveness
Hence, “the attractiveness of the Philippines as an investment destination is not affected by the pending leadership transition.”
Debt watcher Standard & Poor’s (S&P) shared the same view that it would be business as usual amid the coming national elections in May.
“Our assumption is that a change in leadership is unlikely to reverse the economic reforms in the Philippines,” John Chambers, S&P sovereign debt committee chair, was also quoted by the IRO as saying.
According to Chambers, “S&P does not see the pending change in leadership disrupting the favorable credit standing of the Philippines” as “whoever wins the presidential election in May is unlikely to initiate a reversal of the existing economic and business policy environment, which has proven beneficial for the Philippines.”
At present, S&P assigns a rating of “BBB” or one notch above investment grade, with a “stable” outlook, to the Philippines.
The IRO said “legislative and administrative reforms over the past six years are credited with helping the Philippines achieve economic milestones, including investment grade credit ratings and a leap in the country’s rankings in various global surveys on competitiveness.”
According to the IRO, the laws enacted under the Aquino administration aimed at sustaining economic progress included the Sin Tax Reform Law, the Foreign Banking Liberalization Act, amendments to the Cabotage Law, the Tax Incentives Management and Transparency Act, amendments to the charter of Philippine Deposit Insurance Corp., GOCC Governance Act of 2011, as well as the Philippine Competition Act.
No matter who wins
“In addition to the legislative measures are key administrative reforms, including those that rationalize and make more transparent the budget process, strengthening of the Public-Private Partnership (PPP) program, enhancement and modernization of the procurement processes for better transparency, and initiatives that expand the taxpayer base for improved revenue collection,” the IRO said.
A separate statement issued by the Philippine embassy in Washington quoted Bangko Sentral ng Pilipinas Deputy Governor Nestor A. Espenilla Jr. as saying during the PBIF that “the BSP, which is mandated to operate as an independent monetary authority, will remain committed to responsibly managing the financial dynamics affecting the Philippines no matter who becomes president.”
The PBIF was spearheaded by Philippine Ambassador to the US Jose L. Cuisia Jr.