Investors likely to put off plans until after elections

CEBU, Philippines - Investors’ interest will likely slow down in the next few months until after elections as capitalists are now holding off plans until the turn-over to a new administration.

Business leader Philip N. Tan made this assessment, although outside observers and economists are seeing good economic prospects in the Philippines, regardless who will sit as President after the election next year.

Tan said it is businesses' initial reaction to temporarily hold-off any major business plans, while the country is bound to be led by another set of officials.

"We are just minimizing, slowing down our moves, or adapting once again the 'wait and see attitude' while election is coming," said Tan who the past president of the Mandaue Chamber of Commerce and Industry (MCCI).

 Meanwhile, Tan also agreed that the next President should be an "infrastructure advocate", otherwise the Philippines will lose its grip in the long term economic buoyancy.

 Recently, economist Bernardo Villegas said that for the Philippines to seize its growth opportunity, it has to elect a President who has serious commitment on boosting the infrastructure.

"Choose a President who will solve problems in infrastructure," said Villegas reiterating the important role of infrastructure to economic growth.

 However, he clarified that the Philippines will achieve a moderate and encouraging growth in the medium term, regardless of who will be elected. If infrastructure were to be given utmost attention, the Philippines' will accelerate in achieving its projected position as the "New Tiger in Asia."

The next 20 years will be a good economic story for the Philippines, Villegas assured, explaining that within this period the country could grow within the range of six to seven percent GDP.

Drivers will continue to be the growing outsourcing sector, overseas Filipino workers' remittances, tourism and the renaissance of manufacturing industry in the country.

 Expansion of these sectors, which will strengthen the economic backbone of the country will happen regardless who will be elected as President next year. (FREEMAN)