January 1, 2025 l Business Mirror
Thirteen business and professional organizations led by the Financial Executives Association of the Philippines and the Institute of Corporate Directors issued a joint public statement last month expressing their profound concern over recent statements and actions that threaten the security of our country and its constitutional order.
“The resolution of political disagreements must adhere to legal and democratic processes. Resorting to threats, incendiary rhetoric, or any form of violence has no place in a nation founded on the rule of law. To this end, we strongly urge all public officials and political leaders to demonstrate restraint, uphold the dignity of their offices, and prioritize the welfare of the Filipino people above political interests,” their strongly-worded manifesto said.
This came in the wake of an escalating conflict between the camps of President Ferdinand Marcos Jr. and Vice President Sara Duterte, who have been at odds since mid-2023. The rift between the Marcoses and the Dutertes has deepened to the point that the erstwhile UniTeam partners during the May 2022 elections are now constantly attacking each other.
For its part, the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) emphasized the importance of political stability in maintaining investor confidence and ensuring the growth of the Philippine economy. In a recent media interview, FFCCCII President Dr. Cecilio K. Pedro said the ongoing feud between the two highest officials of our country might drive foreign investors away if left unresolved. “Whenever tension is projected or perceived, it is not good for business because investors are sensitive to that. They easily get scared and would instead bring their investments to other countries,” he pointed out.
FFCCCII spokesperson Wilson L. Flores lamented that if the international news reports regarding the Philippines always pertain to military exercises and territorial disputes, these could scare away some investors to the detriment of our economic development. He was referring to the geopolitical issues between our country and China regarding sovereignty over the West Philippine Sea.
Despite these problems, the Filipino-Chinese business community remains optimistic about the country’s economic outlook in 2025. Anvil Business Club President Eduardo Cobankiat believes the Philippine government is doing its best to encourage foreign investments and promote a business-friendly environment. Flores chimed in by saying that the Philippines has an advantage in terms of having a relatively young population compared to our Asian neighbors. He cited the more dynamic growth in Filipino consumers’ spending on food, clothing, and lifestyle products.
Michael Wong Ho, President of NP Software Solutions Inc., shared his concerns about the looming trade war between China and the United States as an offshoot of the tariffs on Chinese products being planned by incoming US President Donald Trump next year. He thinks the Philippines may end up as collateral damage in the competitive devaluation battle between the two superpowers, and is worried about a probable second round of inflation stemming from Trump’s protectionist policies.
It may be noted that local financial markets have yet to digest the full effects of the first round of inflation on electricity, water, and toll road rates. The Philippine business sector should thus prepare for the second Trump presidency that is anchored on a comprehensive ultranationalist agenda called Project 2025.
Going back to the 13 major business groups that called on Filipinos to remain vigilant and steadfast in upholding the rule of law amidst political tensions in these challenging times, their joint manifesto concluded: “The strength of our institutions and the resilience of our democracy depend on our collective resolve to remain loyal to the Constitution and reject efforts to erode public trust in good governance.”
*** The views expressed herein do not necessarily reflect the opinion of these institutions and the Business Mirror. For comments, email the author at nextgenmedia@gmail.com. Photo is from Pinterest.