Investment News Analysis

Investors ignore lame-stream media

investments in the Philippines

Here’s a story you won’t read in The Economist – or in much of the rest of the mainstream media for that matter. Investments in the Philippines are up; way up. January to September 2016 saw a 49% increase on the same nine months of 2015. And last month, pledges approved by the Board of Investments (BOI) tripled from September last year – PHP51 billion as opposed to PHP17 billion. Disappointing news for the economy gurus at The Economist; great news for the Philippines and those investing in it.

To The Volatilian™ this comes as no surprise; we’ve been alerting investors to this economy’s potential since President Duterte unveiled his socio-economic agenda back in June. The only thing that does surprise us is how little impact the anti-Philippines coverage has had. But then it shouldn’t; investors are not so easily duped and few, if any, would have evolved their investment strategies based on what The Huffington Post or The Guardian or Time magazine had to say about the Philippines’ economic outlook.

Ceferino Rodolfo, Undersecretary for the Industry Development Group of the Department of Trade and Industry (DTI) and the BOI’s Managing Head, explained: “What we are seeing in the real sector, which is actually the more important one that relies on the fundamentals of the economy, is that growth is being sustained and even accelerated”.

Based on the year-to-date investment picture, BOI chairman, and DTI secretary, Ramon Lopez, expects that 2016 will record an increase in approved investment pledges of between 10% and 15% – that would put them somewhere in the region of PHP403.41 billion to PHP421.75 billion.

According to Lopez: “The investors look at the social economic agenda and the economic policies. As long as they are not changing, as long as it is safe to invest here, investments are protected, contracts are honoured, they see no problem”.

The same bullish investment pattern is being seen at the Philippine Economic Zone Authority (PEZA) – an attached agency of the DTI tasked with investments promotion. In the first nine months of the year, PEZA’s approved investments have risen by 3-5%. Most of this has come from the expansion programmes of existing investors, which is just about the best endorsement of any for entering this market. These are businesses which operate here; they have a true perspective of the risks and rewards of the Philippine economy as it is right now and their decisions have been based on that.

And so the mainstream media’s much anticipated – or possibly hoped for – economic Armageddon turns out to be yet another false prophesy and one that could have cost investors dearly if they’d paid it any notice. That doesn’t mean there won’t be any fluctuations; falls and rebounds in the future – it’s an economy; it’s a living beast. The Philippines is subjected to storms and winds like any market. But given this administration’s resolve and its willingness to use innovative approaches to grow the economy – and given the fact that the successful policies of the previous administration are also being continued – The Volatilian™ believes that the Philippines has a real chance of becoming an Asian Economic Lion.

President Rodrigo Duterte’s war on drugs is not just costly in terms of blood; it’s extremely expensive to fight in terms of cash. But if he doesn’t fight it, and if he doesn’t win it, this emerging market becomes a submerging market. And so for economic reasons as well as for obvious societal reasons this war will continue.

There’s too much at stake here – like the country’s future.

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  • If you are telling us that this good economic news is due to Pres. Du30 , WRONG ! This all begun during the presidency of Gloria Arroyo, that spelled over to PNOY’s and is still on tract today . Pres. Du30’s first 100 days in office could never claim credit for this .

    • It’s good thing that news like this are out and recognized now . It never mentioned effort during last admin coz it will give credit to Arroyo. I don’t think that Pres. Duterte are grabbing for the credit today. As he promised , he will continue programs of previous presidents that will boost Philippines. Hindi naman sya matakaw eh. Kung titino agad ang lagay ng Pilipinas baka sya pa kusang bumaba sa pwesto.

    • maaring tama sabi mo mula pa kay GMA o b4 pa ni President DUTERTE…pero yong matatlong doble sa buwan ng septembre ngayong taon ano ibig sabihin nun?…dahil ngayon lang sila nakaisip o dahil nakita nila masaayos mamuno ang kasalukuyan?

    • Hey manuel gonzales kahit cnong nakaupong presidente matuwa tau dapat magkaisa tau para sa ikauunlad ng ating bansa alisin na yang pagiging utak trapo tau lng nman pangkaraniwan anf naaapektahon yung sinasahod nila ay sa atin nangagaling sa buwis natin

    • 6 years of Aquino Admin – 34 deaths everyday. Most victims were law abiding citizens. Media, Human Rights advocates, CBCP, UN did nothing.

      Now, DUTERTE Admin – 20 deaths everyday mostly suspected criminals and drug pushers. Media, Human Rights Advocates, CBCP and UN were complaining foul.

      9 out of 10 Filipinos were supporting our President, please stop spreading false information as if our country is going down and the President is wicked. He’s not perfect but he’s doing his best and he’s brave. He is our last hope and the VP didn’t do anything she wants to take the power. Don’t let the Philippines be in favor with the suspects rather than the victims. Change for the better is coming. Economic is slowly rising in a span of short time with proven evidences in stock markets and mutual funds. so For those supporting yellow and delima BACK OFF!!!

    • I believed our economy are already working its way up. In our company , we are still hiring until now because market demands it. In fact , some of our employees are already venturing on stocks. Maybe these are the reason why our economy are booming.

    • That is the point……mainstream media all over the world has the same globalist agenda……so, kahit ano pang magandang pangyayari if salungat sa agenda nila, they will oppose…..makikita mo na lahat ng headlines puro negative, kung meron mang balita ukol sa magagandang ginawa ng Pangulo/Cabinet members, bihira ma headline……what is even worse, they twist the facts para angkop sa narrative nila………so huwag masyadong maniwala sa nababasa sa diyario…………….mabuti na lang strong ang Presidente natin at ang pinaka importante, “WALANG CORRUPTION!”

  • Kaya natin ito bastat kapit bisig ang masang pilipino sa gobyerno mong may puso at pantay pantay na pagtrato sa mga pilipino sapagkat sayo nakita ng diyos ang malaking puso ng pagmalasakit na ikaw lang ang makakapagtawid sa tanikalang kahirapan ng masang Pilipino. Ikaw ang sugo ng Panginoong sa kaganapan ng Espiritu Santo sa panahong ito na tatawaging bagong ELIAS sa Bagong Lilim ng PILIPINAS. M abuhay ka tatay Digong.