Senate chaos rattles business sentiment

Business groups on Thursday warned that recent political tensions in the Senate, including the chaotic delivery of impeachment articles against Vice President Sara Duterte, a reported shooting incident near the proceedings, and the controversial exit of Senator Ronald “Bato” dela Rosa from the Senate premises, may weigh on investor confidence at a time when inflation and global risks are already straining the economy.

Industry leaders said the developments highlight the sensitivity of political stability in shaping long-term investment decisions, with governance and rule of law remaining central concerns for both local and foreign investors.

Economic resilience rests on adherence to constitutional processes

One business group, the Federation of Philippine Industries (FPI) said the country’s economic resilience rests on strong institutions and adherence to constitutional processes.

“Recent events at the Philippine Senate remind us that democracy is tested not only in moments of consensus but also in times of discord,” the FPI chairperson Elizabeth Lee said in a statement.

It added that investor confidence depends on consistent governance and respect for the rule of law.

“For business and industry, the assurance we seek is that institutions remain resilient, laws are upheld, and governance continues to function with transparency and accountability,” she added.

The FPI stressed that markets closely track how institutions behave during periods of political stress, not just economic indicators.

Investor confidence is built where rule of law is upheld 

“Investor confidence is built through consistent quarters of transparent governance, credible reforms, and where the rule of law is upheld,” Lee said.

A separate joint statement by major business and civic organizations also underscored the importance of institutional stability amid the unfolding impeachment process.

“We, the undersigned organizations, respectfully call on the Senate of the Philippines to fulfill its constitutional duty to convene as an Impeachment Court and conduct a fair, impartial, and transparent trial based on the evidence and the law,” the statement, with signatories including the heads of such organization as the Management Association of the Philippines, Makati Business Club, Financial Executives Institute of the Philippines, Justice Reform Initiative, the Federation of Philippine Industries, and other industry and civic groups, read.

The organizations warned that failure to convene the impeachment court or dismissing the case without hearing evidence would undermine public trust and weaken democratic institutions.

“Any refusal to convene the Impeachment Court, or any attempt to dismiss the case without hearing the evidence, will undermine the rule of law and weaken the trust in the Senate as a key democratic institution,” it said.

Due process must be observed

In the statement, the signatories emphasized that due process must be observed and that the impeachment trial should not be interpreted as a presumption of guilt.

“For the business community, the implications are significant. Economic stability, investment, and long-term growth depend on credible institutions and consistent adherence to constitutional processes,” the statement said.

The business leaders cautioned that prolonged political uncertainty could divert attention from urgent economic challenges, including energy costs, inflation, employment and industrial competitiveness.