There is no doubt in the minds of regulators the job losses created by Hanjin’s woes can be made up for by foreign direct investments. CONTRIBUTED PHOTO
The Subic Bay Metropolitan Authority (SBMA) has attracted enough foreign direct investments as to make up for the unemployment vacuum created by the financial woes of one of the biggest shipping facilities in the country, the Bangko Sentral ng Pilipinas (BSP) on Wednesday.
“In addition to assurance that the Philippine banking system remains robust and stable, continuing confidence in the growth and development of the Philippine economy despite Hanjin Heavy Industries and Construction Philippines’s (Hanjin PH) closure may also be drawn from significant foreign direct investments (FDI) coming into the country,” the Investor Relations Office (IRO), an adjunct of the BSP, said in an e-mail.
According to the IRO, the unemployment vacuum resulting from Hanjin PH’s financial rehabilitation program should be adequately made up for by the approved foreign investments in the Subic Bay Metropolitan Authority (SBMA).
This notion is supported by the data from the Philippine Statistics Authority (PSA) that reported significant growth in the number of SBMA approved foreign investments reaching P786.6 million, an 83.4 percent growth for the January to September 2018 period versus the registered P428.8 million in the same period in 2017.
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“Out of the approved investments for Subic, 2,493 jobs are expected to be created, supporting employment resiliency in the region,” the IRO said.
“While Hanjin PH’s closure comes with some challenges, it remains a non-systematic event as substantiated by data from the BSP,” it quickly added.
Previously, the central bank showed data reflecting an 11 percent increase in the banks’ total assets in 2018.
“With its robust capitalization, the Philippine banking system is well-positioned to manage about $400 million in loan exposure to Hanjin PH which recently filed for voluntary rehabilitation before the Regional Trial Court in Olongapo City,” the BSP said.
“Overall, there is optimism that the government’s commitment to present reforms — particularly its “Build, Build, Build” agenda, which will bring about job creation and investment growth, tax reform and ease of doing business initiatives — keeps the Philippines on track as one of the fastest growing economies in the fastest growing region in the world,” the IRO said.
