Martial law could rock business confidence

With investor confidence in the country soaring at present, businessmen cited the declaration of a martial law and the softening of the president’s political will as the only potential factors that could rock such bullishness.

“If he doesn’t show political will, then that could shake business confidence. He campaigned on it, worked on it, and is doing it,” Management Association of the Philippines (MAP) president Perry Pe said.

“But if he lacklusterly handles this concept of political will, then business will no longer have confidence in him. Business is confident because there is political will,” Pe said.

Isla Lipana & Co./ PwC Philippines chairman Alexander Cabrera, meanwhile, said a declaration of martial law should zap optimism out of investors.

“That may give him the power to disregard the legislature and disregard the judiciary and then act as the executioner and judge all at the same time. If you disturb the democratic institutions of the country, set that aside, regardless of how well you mean, that’s going to have a great impact to the confidence of the private sector,” he said.

The country is currently under a state of lawlessness after a bomb explosion killed 15 and wounded hundreds in a night market on Roxas Avenue in Davao City two weeks ago.

Last week, separate surveys and reports released by the PwC and the US Chamber of Commerce revealed a strong private sector confidence in the country’s investment and economic prospects.