By Cai U. Ordinario & Catherine N. Pillas
The President’s economic team will meet with investors and the international media during the International Monetary Fund (IMF)-World Bank Meetings this week, according to the National Economic and Development Authority (Neda).
This developed as two other members of the Cabinet sought to placate the 27-member European Union (EU) bloc, whom President Duterte reportedly-cussed following the issuance of a statement condemning the rising incidence of drug-related killings in the country.
“When we talk to foreign investors, we talk about business and economic stability. We don’t talk about those things [like alleged extrajudicial killings]. We look at the long term. We don’t base our decisions on short-term…[incidents]… Now is the time to really come to the Philippines,” Trade Secretary Ramon M. Lopez said at the sidelines of the first European Union-Philippines Business Summit on Tuesday.
For our part, he added, “It is imperative we enhance our trading relationship through an FTA [free-trade agreement] with the EU to ensure the continued market access in goods, services and investments.”
Palace Spokesman Ernesto C. Abella said that businesses are looking for economic stability, which, he said, is a “separate issue” from that of the administration’s campaign against drugs.
Socioeconomic Planning Secretary and Neda Director General Ernesto M. Pernia recently told reporters that the economic team wants to emphasize that the country’s situation is “much less problematic” in reality.
“[We will meet with the credit rating agencies] and also the media because we want to counter the adverse media reports coming out,” Pernia said.
“I just met with two representatives from Moody’s and one from Goldman Sachs [recently]. They were quite amazed or surprised that they observed [that] it’s not what people are saying outside in the international media, the situation here is much less problematic than portrayed in media,” he added.
Pernia also belied reports that investors are leaving the country, as he blamed the reported flight of “hot” money with the strengthening US dollar.
The Neda chief said even local businessmen, including members of the Makati Business Club and the Philippine Chamber of Commerce and Industry (PCCI), are “less concerned” about the economic situation.
Pernia said even embassies have not lost faith in the Duterte administration, saying that foreign governments and their businessmen are keen on working with the Philippines through the provision of official development assistance or investments.
“The macroeconomy is robust, continues to be robust and the government is focused on reducing inequality and poverty and its instruments are the zero to 10-point agenda, including peace and order, which is number zero, and that, by itself, will also attract investors in addition to improving investment climate with better infrastructure and reducing red tape, reducing corruption and the war on drugs is really aimed at promoting peace and order,” he said.
British Ambassador Asif Anwar Ahmad told reporters at the signing of the agreement on Project Repeal on Tuesday that allowing the economic team to spread the word about the administration’s economic policies could allay investor jitters.
Ahmad said the Philippines “has a great story to tell” and there are a lot of economic opportunities still in the country, despite the negative comments made by the President.
He added that the British government agrees with every single point of the Duterte government’s 10-point economic agenda.
“What I told the President was that its time that you allow Secretary Mon [Ramon] Lopez, Secretary Sonny [Carlos] Dominguez and others to travel abroad to explain the economic plans of this country so the confidence building actually continues from the last administration to the new one,” Ahmad said.
The British ambassador said there are a lot of positive things that are going for the country right now. This includes solid macroeconomic fundamentals, a young population and efforts to address infrastructure gaps.
He added sectors, such as tourism, hold great potential in the country, as well as expanding trade relations through the export of agriculture and nonagriculture goods.