Philippines resilient, Southeast Asia a beacon of growth – Sy-Coson

MANILA, Philippines - The Philippines remains resilient, while Southeast Asia stands out as a beacon of growth says SM Investments Corp. (SM) vice chairperson Teresita Sy-Coson at the recent Asian Financial Forum held in Hong Kong.

Sy-Coson said the Philippines continues to enjoy economic growth of between six and seven percent in the last three years. Main factors supporting this growth are robust overseas workers’ remittances, expansion in the business process outsourcing (BPO) and rapid urbanization of the Philippine countryside. 

Against a backdrop of global uncertainties, and economic slowdown in major parts of the world, Sy-Coson is optimistic that Southeast Asia offers opportunities for growth.

“The Philippines remains resilient. A slowdown in the developed economies is unlikely to hold back the development of the country in a major way. Our strong domestic private consumption will help insulate the country from extreme shocks and volatility,” Sy-Coson said.

Remittances from overseas Filipino workers and the income from the BPO sector have fueled consumption growth, and have also resulted in growth in real estate and domestic tourism. Despite the slowing down of agricultural production and of lower public spending, economic growth in the Philippines remains robust, supported by solid domestic demand.

Further upsides, she observed, would come from infrastructure spending, while the development of ports, toll roads, and mass transit systems would facilitate growth of peripheral industries.

For its part, SM is poised to take advantage of these growth opportunities, being a dominant player in Philippine property, banking and retail.

She also said that foreign direct investments could focus on what the Philippines could offer such as the abundance of quality labor, a good educational system that caters to technology and research, and a strong service provider industry and orientation.