President Duterte’s Stance Sends Shivers Down the Spine of US Companies
Investor concerns regarding Philippine President Rodrigo Duterte’s confrontational approach towards the United States are reverberating through American businesses, leading to delays and withdrawals of investments in the country.
According to Dan Lachica, head of the Semiconductor and Electronics Industries in the Philippines, Inc (SEIPI), the situation is troubling, stating, “The issue is that we are losing momentum. Investments are being put on hold, and orders are being canceled. Hopefully, it won’t escalate to the point of business closures.” These apprehensions were reported by Bloomberg on Monday.
Duterte’s recent actions have also caused the stock market and exchange rate to plummet. The successive and relentless verbal attacks launched by the Philippine President against the US since September 2016 have had a distressing impact on foreign direct investment.
SEIPI, the largest organization representing local and foreign electronics companies in the Philippines, shares the same concerns as the American Chamber of Commerce. The business group has issued warnings, expressing that Duterte’s ascension to power from Davao City has created an environment of unease and obstacles.
Lachica has urged for an audience with the President to voice the worries of industry leaders. However, he refrained from disclosing the specific companies that have halted their investments. Among those affected are prominent US electronics companies, including Texas Instruments Inc. and Moog Inc., which maintain manufacturing facilities in the Philippines.
In a separate statement, Trade Secretary Ramon Lopez emphasized that Duterte’s intentions are not anti-US but rather anti-US interference. Lopez stated, “He is advocating for the promotion and protection of investors, as well as the facilitation of exports.”
Finance Secretary Carlos Dominguez echoed these sentiments, assuring top US business executives that no American companies are intending to abandon the Philippines. Dominguez further affirmed that the economic ties between the Philippines and the US will persist, regardless of the prevailing circumstances.
The electronics sector, which constitutes nearly half of the Philippines’ exports, experienced a revitalization in September 2016 after a prolonged downturn of 17 months. During that period, electronic and semiconductor exports saw a growth of 0.7 percent compared to the previous year’s figures.
