Phl sees muted investments from US firms

The Philippines is likely to see muted investments from American companies over the next few months due to uncertainties over the policies of US President Donald Trump.

American Chamber of Commerce of the Philippines senior advisor John Forbes said US firms have turned more cautious on their investment plans as they wait for clearer policies from Trump.

“President Duterte created some uncertainties when he came into office with some of his statements but they were clarified by (Trade Secretary Ramon) Lopez, (Finance Secretary Carlos) Dominguez, and others in the administration so people have more confidence and now, you have the uncertainty of Trump,” Forbes said.

“But less uncertainty of policy here because in the first six months of the Duterte administration, there have been many reassurances that business is very welcome here to stay and to expand. Now, there’s new uncertainty in the United States of what may happen, so these two uncertainties that go back to back have made companies more cautious because they are uncertain in the future,” he added.

Since uncertainty deters investment, Forbes said he expects new investments from the US to slow down “for the very near term.”

“Investors want certainty so new investment in the Philippines may slow down. It is slowing down because of uncertainty created here. (And there is) greater uncertainty created now in Washington. Certainly, they may postpone expansion but I don’t expect withdrawals,” he said.

“Because of uncertainty, some companies will delay (their expansion). I think it’s an attitude that does apply to all sectors. But then you don’t know the individual companies and their considerations. We will get more clarity as the policies get legs,” Forbes added.

Forbes said American outsourcing companies, for one, want to find out what President Trump means by his “bring back the job” and “end of offshoring act” pronouncements.

Philippine Economic Zone Authority director general Charito Plaza has said a lot of American outsourcing companies that have expressed interest in expanding are now holding off investments because of unsettling declarations from the American leader.

Trump’s protectionist pronouncements such as “America first” and “buy American, hire American” have created jitters among markets worldwide.