Philippines: Economy ‘in a good spot’ amid war on drugs

(File) New Philippine President Rodrigo Duterte takes the oath during his inauguration ceremony in Malacanang Palace. Pic: AP.

23rd August 2016

PHILIPPINES president Rodrigo Duterte has been given a thumbs up by the business community due to his prolific economic policies, despite widespread publicity on his war on drugs which has claimed nearly 1,800 lives since he took office less than two months ago.

According to Reuters, business executives are cheering the new administration’s focus on making new infrastructure projects, saying it would likely serve as a catalyst for a long term economic boom.

Other executives, the news agency reported, also view Duterte’s violent war on drugs in a positive light.

Antonio Moncupa Jr., president and CEO of East-West Banking Corp, one of the top 10 lenders in the country, said the Philippines was currently “in a good spot”.

“The pronouncement of government prioritizing infrastructure spending, accelerating it and cutting red tape, solving peace and order, I think all point to very good prospects ahead,” he was quoted as saying.

SEE ALSO: Philippines: Nearly 1,800 drug suspects slain in 7 weeks, inquiry hears

The Philippines’ economy grew to its highest level in three years at 7 percent in the second quarter of this year, compared to the same period in 2015, the government announced last week – making it one of the fastest growing countries to report their growth for the second quarter.

Six weeks into his presidential tenure, Duterte has recorded a staggering 91 percent approval rating in the latest public survey. Businesses were also said to be lining up to announce expansion plans.

Reuters pointed out that the mainstays of the economy – remittances and the outsourcing sector – are flourishing and boosting domestic consumption.

Alan Richardson, Hong Kong-based investment manager at Samsung Asset Management, said: “Investors have been positively impressed by Duterte.”

“He will likely receive positive reviews for his first 100 days presidency. Clear and consistent policy implementation should strengthen business and investor confidence and in turn sustain superior economic growth relative to the Asia region,” Richardson was quoted as saying on Bloomberg.

Although Duterte has been making headlines over ‘unsavory’ remarks, Soo Hai Lim, investment director at Baring Asset Management in Hong Kong, said: “Investors probably see the new president in a favorable light, especially with regards to the economy.”