Miriam wants limit set on entry of hot money

MANILA, Philippines - Sen. Miriam Defensor Santiago, speaking at the economic briefing recently held by BDO Unibank, Inc. (BDO) in Bacolod City, impressed around 600 attendees with her wit and sharp views on the Philippine economy.

In her keynote speech, the senator mentioned the need for Bangko Sentral ng Pilipinas (BSP) to continue to limit the seemingly uncontrollable entry of hot money into the country as one way of getting past the challenges caused by the uncertainties of the world economy.

“Because of the gloomy world economic outlook and the rock bottom or near zero interest rates in the developed world, investible short-term funds are in search of the best place or places where they can park their funds.

The Philippines happens to be an attractive place for such short-term funds. With its relatively high interest rate and strong likelihood that the peso will continue to appreciate in value, it makes sense to park ones investible funds in the Philippines. But while it is good for short-term foreign investors, it wreaks havoc on the domestic economy,” she said.

Meanwhile, Sen. Santiago, an Iloilo native, lauded the performance of the Western Visayas region, which currently ranked 5th in terms of contribution to the country’s GDP and 4th in terms of GDP growth rate. But more can be done, according to the senator.

“Growth can be improved and more people will benefit from such growth if only agriculture can be made more robust and productive. Agriculture and its related industries such as food processing and agro industrial manufacturing should be the focus of lending in the region,” she said.

Before ending her speech, the senator imparted this inspiring message to the attendees who mostly came from Bacolod and Negros Occidental: “I have no doubt you are going to be the leader in this part of our country in achieving economic self-sufficiency one day soon or during our lifetime at least.”