Business sector calls for stability amid political turmoil
Investors are generally more concerned about economic reforms continuing to move forward despite political tensions. ‘What’s really important is that priority reform measures are on track and not distracted by political noise,’ said RCBC chief economist Michael Ricafort.
RCBC chief economist Michael Ricafort, reacting to developments in the House, with the majority voting to impeach Vice President Sara Duterte for the second time even as a majority in the Senate replaced Senator Vicente Sotto III with Senator Alan Peter Cayetano as Senate President, reminded politicians that legislative predictability and governance reforms are what matter to foreign investors looking at the Philippines as a viable long-term investment hub.
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Business leaders and economists called for continuity in economic reforms and policy stability following major political developments, including the Senate’s 13-9-2 vote to replace former Senate President Tito Sotto with Alan Peter Cayetano, even as well the House of Representatives’ voted 257 in favor of advancing the impeachment case against Vice President Sara Duterte, versus 25 lawmakers against and nine abstaining.
Closely watching
Industry groups said investors are closely watching whether these political tremors could affect the passage of key economic reforms tied to energy, governance and investment competitiveness.
Federation of Philippine Industries (FPI) chairperson Elizabeth H. Lee said businesses remain focused on maintaining a stable investment environment regardless of leadership changes in government.
“It’s still too early to say, but businesses continue regardless of whoever sits in power — whether in Malacañang or the Senate,” Lee said.
“Companies will continue operating as long as the Senate remains conducive to business and investments,” she added.
Focus on reforms
Lee said lawmakers should focus on structural reforms, particularly measures that could reduce energy costs and strengthen industrialization to support long-term growth and employment generation.
“We need structural reforms, particularly in energy to lower down costs,” she said. “These are key reforms that must be pursued regardless of who sits in government.”
Meanwhile, chief economist of RCBC Michael L. Ricafort, said investors are generally more concerned about whether economic reforms continue moving forward despite political tensions.
“What’s really important is that priority reform measures are on track and not distracted by political noise,” Ricafort said.
Legislative predictability
He added that legislative predictability and governance reforms remain important factors for foreign investors assessing long-term opportunities in the Philippines.
“These factors are also considered by foreign direct invesments (FDIs) especially those legislative reform measures that pertain and benefit them,” Ricafort said. “Also part of the scoring system related to political factors.”