Business sector calls for stability amid political turmoil

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.”