Filipino wealth: Nowhere to run

The fear and panic that’s happening all over the world due to Standard and Poor’s credit rating downgrade of the United States – the world’s largest economy – is almost making people feel like the roof is literally falling over their heads. Worldwide markets are fidgety and investors are nervous, with small businesses anticipating glum prospects due to cuts in federal spending coupled with raised taxes. It’s clear that tightened credit access will slow job generation even more particularly for small businesses. As the dollar continues to weaken, the cost of gasoline and other imports will surely keep going up.

The situation is starting to convince people that there seems to be a lot of truth to the oft-quoted saying that, “When America sneezes, the whole world catches a cold.” For some, it looks more like they’re experiencing the onset of pneumonia. Even the world’s richest man Carlos Slim has not been spared. The Mexican billionaire lost over $8 billion in just one week – $6.7 billion over the weekend and another $2 to $3 billion in the last two days with his largest US asset America Movil showing a decline and stocks continuing on a downward spiral. Pardon the pun but apparently, Carlos’ wealth is getting slimmer. Which just goes to show that a man’s riches can be wiped out literally in a matter of minutes. As the saying goes, “You snooze, you lose!”

The only country that is literally spared in the western world is Canada which is being hailed as the “last great frontier” on account of its natural gas and oil-rich deposits located in the Western Canadian sedimentary basin. Nowadays, Canada has become a favorite destination for foreign investors due to its very conservative economic policies. The only other frontier for investors is Asia which includes the Philippines. President Noy’s optimistic outlook should be encouraging to investors – which in turn should spur wealthy overseas Filipinos to take a closer look at prospects in their native land. We are told that slowly, several millions of dollars have been creeping back into the country mostly in real estate. Which probably explains why properties in Metro Manila particularly in Makati are going for as much as P180,000 per square meter.

The estimated Filipino wealth parked outside the Philippines as of 20 years ago was estimated at $30 billion.

Maybe the BIR can encourage more Filipino investments by coming out with a tax amnesty program to attract legitimately acquired Filipino wealth. A lot of balikbayans, in preparation for their retirement, are gobbling up condo units – driving up prices as a consequence. The bottom line is that the time has come for Filipinos to “put their money where their mouth is.” Or more precisely - put their wealth back to where it belongs: their own country.

What’s up with Mar?

Since his appointment, Mar Roxas has been quietly working to put the DOTC back into shape, so to speak. The agency has one of the biggest budgets and is alleged to be one of the most corrupt in the country, with seemingly endless scandals trailing it like a shadow. Allegations of wrongdoing continue to hound DOTC, from crooked LTO employees conniving with carjack gangs to big-ticket projects like the NAIA 3, the ro-ro (roll-on, roll-off) port facilities etc. – and it’s not surprising that Mar finds all of these extremely stressful.

So to de-stress and combat the enervating effect of such a toxic Cabinet portfolio, Mar Roxas almost every weekend puts on his earphones, listens to music and hits the golf ball – all by his lonesome self. Aside from the exercise he gets from playing golf, he also tries to keep fit by carrying his own golf bag. Whenever Mar Roxas is asked by fellow golfers why he carries his own bag, his standard answer: “Government pays too little so I have to carry my own bag. Can’t afford to pay for a caddie!”

Spy tidbit

– We continue to receive emails in reaction to our “wheeler dealers” columns, and readers are requesting us to reveal the identity of the American car dealership mentioned in our Aug. 9 column. Peng Perez de Tagle gave us permission to disclose the name of the said dealership where he reportedly had the unfortunate experience. It is the Ford Libis dealership in Quezon City.

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