PRRD good for PHL in the long run

TOP fund manager Mark Mobius said economic risks remain “benign” in emerging Asian markets, including the Philippines, where he believes the assumption to office of President Rodrigo Duterte would be “good” for the country in the long run.

Mobius, who has spent more than 40 years working in emerging markets all over the world, said in a television interview that investors should not be overly concerned over Duterte’s firebrand image, given that the Philippine president belongs to a new wave of “more populist leaders” across the globe who are effective in implementing law and order in their respective countries, “which is a good thing.”

“I think the marketing impact is going to be good to longer term. Once he (Mr. Duterte) gets his house in order….I think he’s going to be softening and you’re going to see the reform taking place,” said Mobius, who is executive chairman of the Templeton Emerging Markets Group.

When asked if he does not see anything negative about Mr. Duterte’s use of colorful language, Mobius said: “No I really don’t. I think we’re seeing this globally, more populist leaders, people who are effective in pushing down crime and corruption. You’re seeing that all over

the world, which I think is a good thing.”

In his interview with Bloomberg, of which excerpts where published in the local media, Mobius said concerns about the Philippines and Duterte are “overdone” considering that other countries in Asia, like Indonesia and Thailand, are also dealing with their own political issues.

“I don’t see downside anywhere, because there are individual problems in each country. There’s concern about Duterte and the Philippines which I think is overdone. There are concerns about reform in Indonesia; in Thailand, the political environment may be questionable. But all in all, the situation looks pretty benign in Asia,” he said.

This “benign” situation, Mobius said, also includes the Philippines, where a successful campaign against crime and corruption spearheaded by Duterte “will be very positive for the [country].”