Cebu business chiefs upbeat
Among moves they hope for is infrastructure boost
Wish list for 2017: more growth centers outside Metro Cebu, as one way to ease road traffic; successful hosting of events in connection with the Asean Summit Something to watch closely: changes in US economic policy after Donald Trump’s first term as president will begin on Jan. 20, 2017 (Related story, A4)
CEBU’S business community is upbeat about the local economy in 2017.
Officials of the different chambers of commerce spoke of thriving micro, small, and medium enterprises (MSMEs). A key retail official emphasized a more dynamic and competitive retail activity with some events of the Association of Southeast Asian Nations (Asean) summit bound to be held in Cebu.
A local Business Process Outsourcing (BPO) authority discussed the prospect of more jobs. Meanwhile, exporters are cautiously posi- tive about a probable recovery. The local banking sector expressed optimism even as it raised concerns on external developments, particularly on the new US president’s economic policies.
The government, meanwhile, as represented by the National Economic and Development Authority (Neda) 7 emphasized regional infrastructure, being one of the major thrusts of President Rodrigo Duterte’s administration, to pump-prime economic growth in 2017.
Neda 7 Director Efren Carreon said the government targets to see a growth in Central Visayas’ Gross Domestic Product (GDP) of between 6.4 and 6.9 percent, from the 5.6 to 6.1 percent growth projections in 2016.
Cebu Chamber of Commerce and Industry (CCCI) President Melanie Ng described 2017 as “a year of abundance” coming from “swirling opportunities.”
“(We) hope that the economic initiatives undertaken by the current administration will bear fruit and create positive results for the economy and business. We really see the strong PPP (public-private partnership) synergy and openness of the current administration to engage private companies to promote inclusive business, promote MSMEs, and create more jobs,” Ng said.
Mandaue Chamber of Commerce and Industry (MCCI) President Glenn Anthony Soco said he expects that 2017 will be the start of the implementation of Duterte’s 10-point socio-economic agenda, and he expects to see more infrastructure projects this time, especially to address road congestion and the need for better public transport.
“We cannot stop the momentum. The interest is there, the business is thriving and the goal of inclusive growth is happening,” Soco said.
Dispersal
But he also noted that the government needs to craft the right policies, with emphasis on the ease of doing business, to implement all government programs, especially those that aim to boost MSME development.
Cebu’s economy is expanding, as evident in the busier economic activities here, but the private sector has repeatedly pointed out gaps in infrastructure, particularly the worsening traffic and flooding situations.
“We hope to see more growth centers next year,” Carreon said, referring to areas outside Cebu’s major cities.
Cebu Chamber of Commerce and Industry (CCCI) Vice President for Business Development Virgilio “Nonoy” Espeleta said that while he personally does not expect immediate improvements in infrastructure in 2017, his view is that the government needs to address this in the short term as this is already causing inefficiencies in business and inconvenience to the public.
Worse, without the right and timely solutions to infrastructure problems, these gaps may discourage future investors and push them to do business in other parts of the country instead.
Global
Major international events anticipated in 2017 are the hosting of several Asean meetings, as well as one segment of the Miss Universe 2017 competitions. The Department of Tourism (DOT) 7 said it is confident with Cebu as the host destination, after the successful hosting of senior officials’ meetings of the Asia Pacific Economic Cooperation (Apec) forum in the last quarter of 2015.
Global events, however, may pose risks to the expansion of Cebu’s economy.
Uncertainties about the economic policies of the United States, under Donald Trump’s administration that will start on Jan. 20, will have an influence on the Philippine economy in general, said Cebu Bankers’ Club immediate past president Maximo Rey Eleccion.
The strong dollar could also spell higher inflation or more expensive goods in 2017 as the exchange rate hovers near the 50-level.
As the business community welcomes 2017 like everyone else, officials are praying that no major natural calamity would hit Cebu. Most calamities in unprepared communities take away lives, apart from causing economic losses, too.