Six prominent groups representing the business sector reaffirmed their commitment to invest and create jobs in the Philippines amid weakening sentiment in the economy, which is fueled by what they described as a “political turmoil” stemming from the ongoing corruption scandal.
In a rare joint statement sent to the media moments after a pivotal reshuffle in the administration’s economic team, the business groups emphasized that they remain committed to supporting the Philippine economy.
“While the current political turmoil raises understandable concerns, we stress that the country’s long-term fundamentals remain strong; anchored by a well-regulated financial system, a stable banking sector, and companies that continue to invest in and believe in the Philippines,” the groups said on Monday, Nov. 17.
The statement was signed by Makati Business Club (MBC), Management Association of the Philippines (MAP), Philippine Chamber of Commerce and Industry (PCCI), Financial Executives Institute of the Philippines (FINEX), Philippine Finance Association, and Institute of Corporate Directors (ICD).
In a statement that essentially serves as a pitch to potential investors, the six business groups said that the institutions safeguarding local markets “continue to operate independently and rigorously.”
The groups cited the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) as among the most reliable government partners when it comes to businesses.
Both the BSP and the SEC uphold regulatory frameworks aligned with global standards, ultimately ensuring market integrity, prudent risk management, and strong investor protection, they said.
“The Philippines continues to meet international benchmarks on capital adequacy, disclosure requirements, and corporate governance,” the groups said.
The business groups also took note of the corporate earnings of publicly listed companies, which reflect the economy’s underlying strength.
They noted that even during periods of global instability, such as the Covid-19 pandemic, companies continued to demonstrate resilience with growing revenues and stable margins.
Further, the groups said that investment sentiment in the country remains robust, with gross fixed capital formation ranging between 22 percent and 27 percent of gross domestic product (GDP) over the last 10 years.
“This ongoing level of capital spending, mainly driven by business growth, clearly indicates that Philippine companies continue to build capacity, expand operations, and invest in the country’s long-term prospects,” the statement read.
While upholding optimism, the six business groups stressed that investor confidence is influenced not only by economic fundamentals but also by governance.
“We therefore urge public institutions to ensure policy stability, uphold the rule of law, and address corruption quickly and decisively,” the groups stated.
“Clear guidance, consistent enforcement, and transparent decision-making are crucial to maintaining growth momentum and gaining the trust of both domestic and foreign investors,” they added.
In return, the groups said they will remain focused on responsible leadership, ethical practices, and constructive engagement with the government.
They also said they will continue investing, creating jobs, expanding industries, and strengthening the economy’s productive capacity.
“In a time of increased uncertainty, our message is clear: the private sector remains united in its belief in the Philippines’ long-term potential,” the statement read.
The groups’ statement was sent a few hours after President Ferdinand R. Marcos Jr. accepted the resignation of Executive Secretary Lucas Bersamin and Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman.
Both officials made their abrupt exit from the Cabinet “out of delicadeza” after their names were mentioned in the flood control scandal and budget insertion allegations, respectively.
Marcos has appointed Department of Finance (DOF) Secretary Ralph Recto as the new Executive Secretary, DBM Undersecretary Rolando Toledo as the new Officer-in-Charge (OIC) of the agency, and Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick Go as the new DOF Secretary.
These announcements coincide with the Iglesia ni Cristo’s (INC) protest for accountability and transparency, where the influential religious bloc called for prompt justice against those responsible for the corruption scandal.
