Economic team off to counter negative perception abroad

MANILA, Philippines – Philippine economic managers would seek to overturn the negative perception of the international community on the Philippines during the annual meetings of the World Bank Group and the International Monetary Fund (IMF) in Washington this week.

While in Washington, the Philippine delegation would meet with prospective investors, business groups, banks, credit rating agencies and even foreign media which include the Washington Post and New York Times, said Socioeconomic Planning Secretary Ernesto Pernia.

“We want to counter the adverse media reports (about the Philippines),” he said.

On its Facebook page, the Philippine Embassy in Washington said Pernia would guest in its “Talakayan sa Pasuguan” to discuss the current economic conditions in the country, growth prospects and ongoing reforms of the Duterte administration.

Foreign credit rating agencies have expressed concerns about rising uncertainties in the diminishing policy predictability and stability of the Duterte administration as well as the government’s strong focus on law and order which has allegedly resulted in numerous instances of extrajudicial killings.

Debt watchers fear this would undermine respect for the rule of law and the legitimacy of democratic institutions.

Pernia said the Philippine delegation would continually assure the international business community of the country’s macroeconomic stability and ongoing efforts to improve the business climate.

“The macroeconomy is robust, continuously robust, and the government is focused on reducing inequality and poverty and is promoting peace and order. That in itself would attract more investors. And in addition to improving the business climate, we want to put up more infrastructure and reduce corruption,” he said.

The negative perception, he said, comes mainly from the negative stories churned out by international media and is not shared by the local business community.

“But we already talked to the local businessmen. They are still cheering the President on the war on drugs,” he said. “With business groups like the Makati Business Club and the PCCI (Philippine Chamber of Commerce and Industry), they are not concerned.”

Describing his recent meeting with representatives of Moody’s and Goldman Sachs, Pernia said they were “pleased or surprised” that the situation on the ground is “really much less problematic than what was created by international media.”

Even embassies, he said, keep sending representatives to his office to inquire about investment opportunities in the infrastructure and transportation sectors. Among countries that inquired recently were France, South Korea and Belgium.

Investor confidence in the country, he said, also continues to be strong in terms of direct investment.

“They say investors are leaving the Philippines. That is really just the stock market, not hard investments, most because of the strengthening of the US dollar or what the Fed might do. Investors are not pulling out their factories or their equipment. The stock market is very sensitive to perception and sentiment,” he said.