Investors adopt wait-and-see attitude ahead of 2004 polls

Local and foreign investors have taken a wait-and-see stance on the country’s economic environment as the positioning for next year’s national elections further put a drag on the business sector’s prevailing perception of political instability, Trade and Industry Secretary Manuel Roxas II said.

He said with the adverse effect of investors staying in the sidelines, a subsequent slowdown in investment inflows would be felt by the economy next year.

This year, the Board of Investments (BOI) is already factoring in a lower investment commitment than last year due to a host of other factors: the US-Iraq war, the outbreak of SARS (severe acute respiratory syndrome) and the July 27 mutiny.

Roxas pointed out that as the May 2004 polls gets nearer, the political mud-slinging also heightens, affecting the performance of the three branches of government – the Executive, Legislative and Judiciary.

The "Jose Pidal" bank account controversy and most recently, the impeachment proceedings against Chief Justice Hilario Davide Jr. both caused more apprehensions about the state of politics in the country.

Various business groups, for instance, have expressed their "deep concern and outrage" over the House of Representatives’ moves to impeach the Chief Justice for his alleged mismanagement of judiciary funds.

These groups include the Makati Business Club, the Federation of Filipino-Chinese Chambers of Commerce Poll positioning and Industry, the Management Association of the Philippines, the Philippine Computer Society, the Cebu Business Club, the Iligan Bay Chamber of Industries, the Mindanao Business Council and the Muslim Business Council.

Industrialist Raul Concepcion, the chairman of the Consumer and Oil Price Watch, has urged the leaders of the three major branches of government to "exercise the highest degree of statesmanship."

"They should set aside amor propio, legal technicalities and vested self-interest, if any. They must act now - for the sake of the nation which they are sworn to serve," he stressed.