Obama win seen as boon to PH

SEVERAL Cebu  business leaders said Obama’s re-election won’t mean the reduction of outsourcing services from the US to the country despite Obama’s  support to a House bill for this purpose.

Cebu Business Club president Gordon Alan Joseph said even Obama can’t  stop the growth of outsourcing services to the Philippines even if the US government gives incentives for its companies to stop doing so.

“While the American government may give incentives to those companies who will locate in the US, the outsourcing phenomenon cannot be reversed,” said Joseph, adding that Obama’s reelection will still ensure recovery of the US economy.

“A US economic recovery means Philippine recovery, specifically the export industry,” he added.

Gregg Anthony Gabison, Cebu Educational Development Foundation for Information Technology (CEDF-IT) president, agreed, saying companies all over the world recognize outsourcing as a tool to stay competitive.

“He supported the bill last year but it continued and even prospered and grew more meaning it’s inevitable. It’s really the way to go,” he said.

Cebu Investments and Promotions Center managing director Joel Mari Yu said that he believes Obama’s support for the anti-outsourcing bill was just a “political” ploy and will not be the case now.

“Now that it’s over, Obama has four years to improve the economy. He knows that banning outsourcing is not a real alternative for the American economy to recover,” said Yu.

Yu and Joseph said Obama’s challenge now will be to heal political divisions in the US and achieve bipartisan support from a Congress divided between a Democrat-dominated Senate and a Republican dominated Lower House.

In Manila, the peso rose to its highest in more than four years yesterday as the market reacted positively to the reelection of  Obama, a development seen to allow the world’s biggest economy to pursue his administration’s reforms.

The local currency closed at 41.06 against the US dollar, up by 15 centavos from the previous day’s finish of 41.21:$1.

Yesterday’s close was the highest in over four years, market data showed.

The last time the peso closed stronger than 41.06 against the greenback was on March 7, 2008, when it finished at 40.85:$1.

Traders said the announcement of the results of the US presidential election has somewhat removed the cloud of uncertainty surrounding the supposed implementation of several fiscal reforms to help address the US government’s debt problems.

By the end of this year, taxes related to the Obama administration’s health care law, as well as certain budget cuts and lifting of some tax perks for businesses to help put the fiscal house in order are scheduled for implementation.

Traders said that with the election over, some investors went out of the sidelines and purchased emerging market assets, thereby lifting Asian currencies, including the peso.  / Reporter Aileen Garci-Yap With an Inquirer report