Businesses weigh impact of Duterte arrest

MANILA, Philippines — Business groups are watching closely how events will unfold following the arrest of former president Rodrigo Duterte, with one view warning that political instability could further deter investments and another suggesting investor and business confidence may improve if peace is maintained.

Duterte was arrested last week and has made his first appearance before the International Criminal Court in The Hague on charges of crimes against humanity over his deadly war on drugs.

“If the arrest of former president Duterte results in massive mass actions and demonstrations, it might create an impression of political instability, which will further discourage investments - local or foreign,” Employers Confederation of the Philippines president Sergio Ortiz-Luis Jr. said in a text message.

At present, he said the Philippines is lagging behind its neighbors in Southeast Asia in attracting both investments and tourists.

He attributed this to impressions of erratic and inconsistent policies, red tape, high cost of electricity and recently, news of corruption.

When asked what would help reassure businesses, he said “it will help if the media (both the mainstream and social media) act with prudence and not allow themselves to be used by either side of the issue, especially because of the coming election,” he said.

For his part, Philippine Retailers Association president Roberto Claudio said in a Viber message that “for so long as there are no civil disturbances, it may even improve investor and business sentiment.”

Philippine Chamber of Commerce and Industry (PCCI) president Enunina Mangio said in a Viber message that the country’s largest business organization still believes it is too early to comment and see the effect of Duterte’s arrest on businesses and investments.

“The wait-and-see attitude of everybody is prevailing,” she said.

Last week, PCCI chairman George Barcelon also said that because what happened was unexpected, it’s too early to tell how it would affect business sentiment.

For now, Mangio said businesses are moving on and operating as usual.

She said the PCCI continues to conduct outbound trade and business missions to different countries like the United States, Mexico, Canada, Japan, Spain and in the Middle East.

Apart from forging business partnerships, the group is also promoting the country as the top investment hub in Southeast Asia.

“We also continue to accept inbound trade and business missions from different countries, trying to highlight and promote our country’s advantage over our other neighboring countries,” Mangio said, citing the Philippines’ skilled labor force, improvements in ease and cost of doing business, tax incentives and the government’s effort to reduce power cost.

Last week, Trade Secretary Cristina Roque said the Department of Trade and Industry remains focused on promoting trade and attracting investments to support economic growth, despite Duterte’s arrest.