Analyst: P.Noy needs to sustain RP's current economic strength

CEBU, Philippines – While the Philippines enjoyed a good impression from the international investment community for its strong economic structure, the new government has to sustain the current economic strength in order to establish credit for both local and foreign investors.

Market analyst Wilfred Son Keng Po, the manager director and general manager for AIG Global Investment Corporation-Philippine branch, said that sustainability of the economic vibrancy of the Philippines is very vital in getting the trust and attractiveness as investment location especially for global investors.

Son Keng Po, who was in Cebu recently to hold an economic briefing for Phil-Am Asset Management Inc. (PAMI) clients held at the Radisson Blu Hotel in Cebu, said the Philippines is on the right track for growth, if the vibrancy of the new government will be sustained in the next six years.

“Hopefully, the sincerity of the new government now to try to do better will continue,” he said adding that one of the important moves that will be pursued is to implement changes in the constitution.

Changes in the constitution may not be in the political scene, but most importantly the amendments for change in the constitution to attract investments should be implemented.

He said the government should consider changes in some of the investment policies, such as the 40 percent ownership cap of the foreign investors, and the limitation of foreign nationals to own properties in the country.

There is a need for the new government, to inject changes in the constitution, specifically for investment laws, in order to make the Philippine much friendlier to foreign investors.

Although, the international investment community is seeing a positive economic state for the Philippines, foreign investors need to see a long-term structural change and does not depend on the changes of political leaders.

Despite the positive trend right now, foreigners still doubt if the Philippines will be able to continue to positive economic movement, regardless of who may sit as leaders in the Philippine administration in the future.

In the next two to three years, the Philippines should manage well the fixture of infrastructure, “this is what the Philippines clearly needs in the next few years.”

He said the government should lead in pump-priming the infrastructure development for the country, in strong support by the local investors, so that foreign capitalists will be attracted to come.

In general, he said the Philippines is still an “exotic” country for big ticket investors worldwide, the government and local capitalists should start the “ball rolling’ in starting to invest in infrastructure.

He said foreign investors will not come here and put their businesses 100 percent, it has to partner with local players. Thus, confidence among the Filipino investors is very important in attracting foreign direct investments (FDIs).

So far, he said the new government is still trying to find its way to do things properly. Unfortunately though, it started on a “bad note”, referring to the tragic hostage crisis that happened in August of this year. (FREEMAN)