Aboitiz still optimistic under Duterte admin
The Aboitiz Group, one of the country’s prominent and influential business clans, remains optimistic about the business environment under the Duterte administration despite mixed political signals and tirades against trading partners that have sent jitters to foreign investors.
Aboitiz Equity Ventures EVP and COO Sabin Aboitiz said the conglomerate was also hopeful President Duterte’s state visit to China would help boost the local economy.
AEV is keen on participating in airport, rails, roads and other projects that is expected to benefit from the expected growth in the country’s tourism.
“It’s the first 150 days. We’re in full support. Whatever would bring in more investments to the country. If the Chinese have one million tourists to the Philippines, the effect is so large so the China angle is very, very positive. One million tourists would have direct impact. It’s so inclusive. It would have direct impact on people. And that’s just one example. We’re hearing other investments. We’re here for the long term. There will always be complaints but the minute that stabilizes, we expect higher growth,” Aboitiz said.
“The group is interested in tourism and the airport space,” said Roman Azanza II, first vice president for business development at AEV.
Other conglomerates have also publicly expressed support to the Duterte administration but have been quietly raising concerns about the President’s inconsistent policies that are affecting the different sectors.
These mixed political signals are causing uncertainties that investors will have to navigate through next year, First Metro Investment Corp. (FMIC) and UA&P Capital Markets Research said in the latest issue of the Market Call.
The report noted that the local equities market and the peso were likely to remain volatile given the string of uncertainties coming from local and global fronts.
The New York-based Global Source also said that President Duterte’s presidential style of policy-making driven by impulse rather than study and full consultation has caused much unease in the business community.
“At a minimum, it puts his economic managers in perpetual damage control mode and diverts attention away from more productive endeavors. Despite his economic managers’ repeated guidance for investors to look at the fundamentals rather than “political noise,” the President’s loose speech cannot but give investors pause and his antiAmericanism is fueling leftist militancy and empowerment that, if left unchecked, would have real business consequences,” Global Source said.