US banking giant Citibank N. A. remains bullish on the Philippines as an investment site as it noted the stable economy and political landscape in the country.
“The Philippines is a fantastic market. There is a growing middle class market,” said Piyush Gupta, chief executive officer of Citibank South East Asia Pacific.
However, Gupta believes that financial markets across the globe will stay turbulent until next year given the financial woes in the US.
“The markets are going to stay turbulent until next year. Investors should be cautious and thoughtful,” he told a press briefing yesterday.
He said that investors would benefit if they park their funds in facilities wherein the principal investments are protected.
Financial woes in the US shook equities markets worldwide. American International Group (AIG) Inc., a US-based insurer is currently in deep financial trouble while investment bank Lehman Brothers filed for bankruptcy during the weekend. Its rival Merril Lynch & Co. agreed to be taken over by the Bank of America, also due to financial problems.
Gupta said he would not recommend investments in equities at this time.
Nonetheless, Citibank said it remains optimistic on the Philippines, particularly in the business process outsourcing industry and the real estate industry.
“The Philippines remains an outstanding place for us,” Gupta said, adding that Citibank is adopting a competitive strategy in the country by building partnerships with large corporations for their banking needs.
Gupta, recently appointed chief executive officer for Citi in the South East Asia Pacific region, is responsible for all of Citi’s businesses in Australia, New Zealand, Guam and the ASEAN countries.
He has held senior management roles across Citi’s corporate and consumer banking businesses, including chief of staff for Asia Pacific corporate bank, head of strategic planning for emerging markets and regional director for global transaction services for Asia Pacific.