THE PHILIPPINES remains a viable destination for foreign investors as fiscal and economic policies remain intact despite political risks, international credit raters said, noting that an unblemished growth story should sustain optimism.
Credit analysts from S&P Global Ratings and Moody’s Investors Service yesterday said the Philippine economy is poised to remain upbeat despite political risks stemming largely from the “unconventional” ways of President Rodrigo R. Duterte and heightened global uncertainty.
“It’s true that perceptions of political risks have increased in the Philippines mainly because the current President is a relatively unconventional political figure by Philippine standards. For quite a while he’s been making public remarks that have raised concerns of certain people, particularly in his public announcement that he’s going to distance the Philippines from the US, its traditional ally,” analyst Kim Eng Tan said in an S&P webcast.
“On the other hand, while he has been making all these pronouncements publicly, we have not seen significant changes in macroeconomic policies in the country and we haven’t seen domestic policies turning more negative for foreign investors.”
The Philippines may even turn out to be a more palatable investment destination amid easing tensions with China under Mr. Duterte’s presidency, coupled with sustained economic policies and reforms.