‘Multinationals give vote of confidence on RP economic stability’

Multinational firms have given their vote of confidence to the country’s economy and are not bothered by the latest political troubles bedeviling the Arroyo administration, Trade Secretary Peter Favila said yesterday.

Favila issued the statement following a meeting with President Arroyo and Nestlé Philippines chairman and chief executive officer Doreswamy Nandiskishore and Nestlé Philippines senior vice president Mabini Antonio in Malacañang.

Nandiskishore told Mrs. Arroyo that Nestlé is pouring P2.3 billion worth of fresh investments into the country this year alone.

"Talking to these big businesses, these multinational firms, they do not really talk or ask me about politics or the current political situation," Favila said. "These CEOs or company presidents know that political situations change and what they really give weight to are economic figures."

Aside from improving economic indicators, Favila said the country’s economic stability is aided by the fact that the economic team has always been "consistent in insulating itself from the business of politics."

Favila said he made it a point to directly communicate with CEOs of foreign and local corporations and inform them of the country’s improved economy and the commitment of the Arroyo administration to insulate the strong economy from politics.

He said the CEO and top officials of multinational companies have responded positively to government initiatives to promote business and appreciate the sound economic fundamentals found here.

The fact that most foreign companies have long-term business plans in the country indicates that they consider political ups and downs as normal and fleeting. He said multinational companies have investments in other countries that also have political troubles.

"As we have seen, the manner by which big business are reacting to our invitation for them to retain their presence here, then to expand their businesses and bring in new investments, tells us that, just like the economic team, they are not bothered at all by political events," Favila said.

Nestlé, which employs about 3,500 Filipinos, has poured in a total of P10 billion in investments to the country in the last five years.

The multinational food and beverage company is seeking to expand operations and increase its sourcing of raw materials in Mindanao and Southern Luzon for the production of new Nestlé products.

Mrs. Arroyo thanked Nandiskishore and expressed her desire to visit the Nestlé plant in Cabuyao, Laguna.