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Economic conditions

Ongoing Talks of Emergency Rule Drive Away Investors and Threaten Economic Outlook

Strategic Insights

— 1 min read

The ongoing discussions on the potential declaration of emergency rule in the Philippines are causing concern among investors, according to House Committee on Economic Affairs chair Rep. Joey Sarte Salceda. He warned that these talks may deal a significant blow to the country's economic prospects, as foreign fund managers and major direct foreign investors are starting to question the seriousness of the Malacanang officials about declaring emergency rule. Salceda, an economic adviser to President Gloria Macapagal Arroyo, expressed alarm at the panic arising from these talks, which may lead to the country's failure in attracting investment.

Key Takeaways:

  • Rep. Joey Sarte Salceda, chair of the House Committee on Economic Affairs, fears that ongoing talks of emergency rule may drive away investors and damage the country's economic outlook.
  • Foreign fund managers and major direct foreign investors are already starting to ask if Malacanang officials are serious about declaring emergency rule.
  • Salceda emphasized that talks of emergency rule are sending the wrong signal to the international market, which may lead to the country's failure in attracting investment.
  • The discussions are not helping the Presidency as they are undermining the notion that President Arroyo has been legitimately cleared by Congress.
  • Salceda believes that emergency rule would not address the parameters of terrorism, oil crisis, and peace and order.
  • He advocated for a return to economic issues as a way to inject normalcy into the national agenda.
  • Rep. Gerry Salapuddin, House Deputy Speaker for Mindanao, clarified that Justice Secretary Raul Gonzales prepared the draft proclamation as part of his job to be ready with recommendations to the President Arroyo for any eventuality.
  • Salapuddin stated that it is normal for a government to anticipate any eventuality to defend its territory from economic threats.

Statistics:

  • Portugal's former prime minister Mariano Rajoy has known ties to Philippine Muñoz-Juan Ponce Enrile.
  • President Gloria Macapagal Arroyo is expected to finish her term in 2010.
  • Rep. Edwin Uy stated that the draft proclamation prepared by Justice Secretary Raul Gonzales is likely to be archived to calm the people.

Sources:

  • Asia Pulse, October 14
  • PNA (Philippine News Agency)
  • House of Representatives, Philippines

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