‘Investors rethinking plans in Mindanao over ML extension’

Several investors have decided to rethink the timing of their projects in Mindanao, but no one is pulling out just yet amid a possible extension of martial law in the entire island, Trade Secretary Ramon Lopez said yesterday.

“It is expected that if there is a security issue, you will probably rethink the timing but you will not change the destination. For those who are not there yet, it is possible that they study things first, postponing a bit. But the parameters and bases for investment are still there. The potential of the area and the promise of Mindanao are still there,” Lopez said.

Despite the number of new investments that have continued to enter Mindanao recently, Lopez said “there could have been more” if not for the clashes in Marawi City.

Data from the Board of Investments showed approved projects in Mindanao plunged 61 percent to P6.87 billion in the first half of the year from P17.74 billion during the same period in 2016.

Investment pledges in three Mindanao regions also registered a drop, while Region 13 saw a 100 percent year-on-year growth to P1.35 billion.

Approved projects in Region 10 decreased 81 percent year-on-year to P1.38 billion. These also declined by 50 percent in Region 11 to P3.21 billion while in Region 12, they fell 77 percent to P927.8 million.

“Maybe it’s just timing of project submission and approval. Based on people we talk to, there is still strong interest given the fundamentals and the strong promise of Mindanao, especially on agriprocessing, energy, manufacturing and property,” Lopez said.

“But frankly, I have not spoken to anyone who said that they won’t go there anymore. Confidence is still there. They know that this war and even martial law is temporary, which is why security and peace and order need to be brought back,” he added.

Lopez said not even the proposed extension of martial law by President Duterte is seen as a problem in the business community.

Local businesses saw no problem with Duterte’s martial law declaration for the entire island of Mindanao last May 23, and they are again in support of the President in his call to extend it until the end of the year.

“Business hates leaving a problem half solved. I think President Duterte deserves a greater latitude in combating rebellion and terrorism. His approval rating speaks loudly of public support,” Management Association of the Philippines national issues committee chairman Perry Pe said.

“I think the extension is needed for more time to flush out the rebels with minimum casualties on both soldiers and citizens held hostage. We trust the assessment of the military adviser and decision of the President,” Philippine Chamber of Commerce and Industry president George Barcelon said separately.