RCBC sees thriving business this year

MANILA, Philippines – The top official of Rizal Commercial Banking Corp. (RCBC) said more business sectors would boost the Philippine economy this year, particularly as the election season starts.

RCBC president and chief executive officer Lorenzo V. Tan said the sectors anticipated to thrive this year include telecommunications, broadcasting/advertising, retail trade, food and beverage manufacturing, fast food/restaurants, personal care products and apparel.

“Electronics, appliances, power/utilities, transportation, and logistics are also expected to thrive in 2016, along with the health (pharmaceutical companies, medical services, etc.) and tourism industries (hotels, travel/leisure/recreational services, and the like),” Tan said.

Expectedly, the business process outsourcing (BPO) industry, the financial sector including insurance, remittances and educational institutions will remain the leaders as these are the prime movers of consumer and business spending.

“The Philippine economy could still continue to remain resilient amid sound economic and credit fundamentals, as it is expected to be among the fastest growing economies in ASEAN and in the rest of Asia for 2016,” the bank executive said.

Meanwhile, he said the ASEAN Economic Integration (AEC) poses a great opportunity rather than a major challenge for all local businesses and industries.

It will open more markets for the domestic economy and it will attract more business into the steadily growing economy, he said.

Investors are looking to move their money to safer havens and so far, the Asia Pacific region has become more attractive than the rest of the emerging markets, Tan said.

Also, tourist arrivals to the Philippines have been steadily increasing, surpassing the five-million arrival target for 2015.

Tan said the bank remains optimistic this year despite external risk factors both in the local and global levels such as El Niño drought in early 2016, La Niña expected in the latter part of the year, and the sharp decline in oil and other commodity prices.