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Anti-US sentiment triggers anxiety among investors
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Filipino indigenous people shout slogans during a rally in Manila, Philippines, Oct. 21, 2016. (AP/Aaron Favila)
P
resident Rodrigo Duterte’s announcement of a “separation” from the United States has caused anxiety among foreign businessmen in the Philippines, a business leader here said.
As a result, some were considering either to postpone expansion plans or just leave the country altogether, said Gordon Alan Joseph, president of the Cebu Business Club.
Joseph said he had received calls from European, American and Japanese businessman who could not understand what was going on.
“They are worried,” he said. During his recent visit to China, President Duterte told state and business leaders that he was going to “separate” from the United States, in both military and economic aspects.
But Joseph said there was no reason for the Philippines to cut ties with the United States, one of the country’s biggest trading partners, as this would lead to capital flight and decrease foreign direct investments here. Exports would drop and unemployment would unnecessary increase, he added.
He also said that with the change in the Philippines’ foreign policy, foreign investors were also starting to get worried about their personal safety amid the brewing anti-foreigner sentiment.
“Their customers [abroad, particularly in Europe] are even asking why they should buy goods from the Philippines,” Joseph said.
Cebu Chamber of Commerce and Industry (CCCI) president Melanie Ng, who witnessed Duterte deliver his announcement, said it was probably his strategy to gain more support from China.
Still, she added, it would be prudent to maintain good relations with the United States considering the business opportunities in that market.
Federico Escalona, executive director of the Philippine Exporters Confederation, Inc. (Philexport) in Cebu, said Duterte’s rhetoric was “confusing.”
“Members of his Cabinet are saying something else. Duterte also did not say that the mutual defense treaty was voided. He said he would end economic relations, but not social relations,” he said.
In Bacolod City, Senator Juan Miguel Zubiri also expressed his apprehension over the possible backlash of President Duterte’s pronouncements.
He said it might affect the business processing outsourcing (BPO) industry that benefits 1.1 million Filipinos.
“My worry is the possible backlash of the business community, especially the BPO sector. The number one market of the BPO sector is the United States,” he pointed out.
The “separation” might also result in the Philippines’ losing its share of the US sugar quota, and markets for its other products, said Zubiri, who was in Bacolod City last week for the MassKara Festival.
“I am one with former President Fidel Ramos in saying we can have an independent foreign policy without making enemies,” Zubiri said.
