Continuity of government policies critical to investors outlook

CEBU, Philippines – The change of administration next year will possibly create uncertainty and a change in perspective among investors, a Cebuano economist warned.

Fernando Fajardo, economics professor at the University of San Carlos, emphasized the continuity of policies and programs of the present administration is very critical for the next.

"There will be change in perspective. First from the point of view of investors: 'What would be the thrusts and priorities of this new administration?' So there is now uncertainty," Fajardo, who is also executive director of Cebu Business Club, said in an interview.

And when there is uncertainty, the economist pointed out that investors might temporarily adopt the "wait and see" attitude.

Fajardo believes that one of the legacies the Aquino government will leave is the good economic growth the Philippines has experienced under President Aquino's term.

The economy, he said, had experienced an average 6% growth in the last five years.

"That is the reason why continuity is very important," he added.

In an earlier interview, Former Finance Secretary Jose Isidro Camacho said one of the programs that the next government should continue is the public-private partnership (PPP) which Aquino started to accelerate infrastructure and development services to sustain economic growth.

"The new government should be able to continue that PPP program. So we should expect more infrastructure building in the next government regardless of who the next president will be," said Camacho, who is the current vice chairman of Credit Suisse Asia Pacific and chairman of Sun Life Philippines.

Camacho said the government still has to improve its spending especially in infrastructure.

"The government has not been able to contribute as much because they have not been able to spend as much as the budget over the last years," the former finance chief said.

"It has taken years for this government to prepare itself for the PPP program. It's just recently that many of the projects are coming on stream," Camacho also said. (FREEMAN)