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WATCHFUL BUT NOT YET GETTING OUT
International investors are not pulling out of the country AIM economist
Published September 23, 2016 3:21pm
Foreign investors are not at this point pulling out of the country, an economist at the Asian Institute of Management said on Friday.
His statement comes on the heels of a report by credit watchdog S&P Global Ratings on Thursday that the sociopolitical situation in the Philippines are starting to worry international investors.
In his latest diatribe agains the international community, President Rodrigo R. Duterte slammed the European Union, the United States, and the United National for voicing concerns about drug-related killings in the Philippines.
On Thursday, he also vilified credit ratings in an apparent response to the S&P report, saying in Pilipino that he doesn't care at all.
"Sa palagay ko hindi naman nag-pu-pullout. Siguro meron silang mga pangamba o mga pag-aalilangan kung papaano magpro-progress ang ating negosyo," analyst and economics professor Emmanuel Leyco said in an interview on GMA News' "Balitanghali."
"Overall, I think they remain the same and watchful, pero wala pang lumalabas," Leyco noted.
S&P noted in the September 2016 issue of "Asia-Pacific Economic Snapshots" that international investors may be getting worried about potential diplomatic complications and short-term law and order issues on the ground.
Concerns regarding the diplomatic front and law and order, particularly the spate of drug-related extrajudicial killings, are not primary factors for investors to get out off the country, Leyco noted.
"Sa tingin ko hindi pa rin enough ito para sabihin nila na hindi na sila makikipag-negosyo sa Pilpinas, bagamat nag-aalala na rin siguro sila," the economist said.
"Ang titingnan nila, in addition to how the President relates with other countries and the business sector, titingnan din nila 'yung overall business climate sa Pilipinas," he added.
Sociopolitical risks
For his part, Nicholas Antonio Mapa, economist at the Bank of the Philippine Islands, said that the Philippines suffered 21 straight days of capital outflows in the local bourse, however, "it's difficult to gauge if it's tied to sociopolitical risks. Maybe it's due to anxiety over the Fed."
"I do know sociopolitical stability is key in their decision to invest. We'll see if the outflows continue or reverse," Mapa said.
President Rodrigo R. Duterte had slammed both the European Union and the United States for voicing concerns about drug-related killings in the Philippines.
"Sa palagay ko kailangan na ring magbago ang mga tao at ang mga negosyante sa expectation nila sa presidente kasi ang presidente mukha talagang hindi siya 'yung typical na dati nating mga naging pangulo," Leyco said.
"Iba siya mangusap, iba ang kanyang mga terminologies at saka 'yung kanyang pakikipagrelasyon sa ibang bansa ay ibang-iba sa dati nating mga naging Pangulo," he added.
Despite pointing out what worries foreign investors at this point, S&P affirmed the Philippines' investment grade credit rating with a stable outlook. Ted Cordero/VDS, GMA News
WATCHFUL BUT NOT YET GETTING OUT
International investors are not pulling out of the country AIM economist
Published September 23, 2016 3:21pm
Foreign investors are not at this point pulling out of the country, an economist at the Asian Institute of Management said on Friday.
His statement comes on the heels of a report by credit watchdog S&P Global Ratings on Thursday that the sociopolitical situation in the Philippines are starting to worry international investors.
In his latest diatribe agains the international community, President Rodrigo R. Duterte slammed the European Union, the United States, and the United National for voicing concerns about drug-related killings in the Philippines.
On Thursday, he also vilified credit ratings in an apparent response to the S&P report, saying in Pilipino that he doesn't care at all.
"Sa palagay ko hindi naman nag-pu-pullout. Siguro meron silang mga pangamba o mga pag-aalilangan kung papaano magpro-progress ang ating negosyo," analyst and economics professor Emmanuel Leyco said in an interview on GMA News' "Balitanghali."
"Overall, I think they remain the same and watchful, pero wala pang lumalabas," Leyco noted.
S&P noted in the September 2016 issue of "Asia-Pacific Economic Snapshots" that international investors may be getting worried about potential diplomatic complications and short-term law and order issues on the ground.
Concerns regarding the diplomatic front and law and order, particularly the spate of drug-related extrajudicial killings, are not primary factors for investors to get out off the country, Leyco noted.
"Sa tingin ko hindi pa rin enough ito para sabihin nila na hindi na sila makikipag-negosyo sa Pilpinas, bagamat nag-aalala na rin siguro sila," the economist said.
"Ang titingnan nila, in addition to how the President relates with other countries and the business sector, titingnan din nila 'yung overall business climate sa Pilipinas," he added.
Sociopolitical risks
For his part, Nicholas Antonio Mapa, economist at the Bank of the Philippine Islands, said that the Philippines suffered 21 straight days of capital outflows in the local bourse, however, "it's difficult to gauge if it's tied to sociopolitical risks. Maybe it's due to anxiety over the Fed."
"I do know sociopolitical stability is key in their decision to invest. We'll see if the outflows continue or reverse," Mapa said.
President Rodrigo R. Duterte had slammed both the European Union and the United States for voicing concerns about drug-related killings in the Philippines.
"Sa palagay ko kailangan na ring magbago ang mga tao at ang mga negosyante sa expectation nila sa presidente kasi ang presidente mukha talagang hindi siya 'yung typical na dati nating mga naging pangulo," Leyco said.
"Iba siya mangusap, iba ang kanyang mga terminologies at saka 'yung kanyang pakikipagrelasyon sa ibang bansa ay ibang-iba sa dati nating mga naging Pangulo," he added.
Despite pointing out what worries foreign investors at this point, S&P affirmed the Philippines' investment grade credit rating with a stable outlook. Ted Cordero/VDS, GMA News