Business sector optimistic about Duterte's econ team

As the Aquino administration must relinquish key Cabinet and other co-terminus positions at the stroke of 12:01 p.m. on June 30, incoming President Rodrigo Duterte is scrambling to fill the posts before taking over the reins of government.

GMA News Online sounded out the business community on the immediate line up of Duterte's economic managers and found out that the initial feedback was basically positive.

Based on their respective statements, the Philippine Stock Exchange (PSE), the Makati Business Club (MBC), the American Chamber of Commerce of the Philippines (AmCham), and the Joint Foreign Chambers of the Philippines were optimistic about the newly appointed officials who will steer the economy in the next six years; and so were a couple of economists.

On the other hand, the Philippine Chamber of Commerce and Industry (PCCI) was brief with its comment.

"They were all very well received," PCCI President Donald Dee said in a text message. He did not elaborate.

"We are pleased with some of the names that have already been mentioned like Secretary  Carlos Dominguez as Department of Finance head and Dr. Ernesto Pernia as NEDA (National Economic and Development Authority) chief," according to the PSE.

"They are the voice of reason and can very well promote the Duterte administration's economic policy agenda," the PSE added.

Duterte on Tuesday convened his chosen Cabinet men in Davao City, noting the positions are 80-percent filled.

Also part of Duterte's economic team are Benjamin Diokno as Budget and Management secretary, and Nicanor Faeldon as Bureau of Customs chief.

"We welcome President-elect Duterte's assurances to the public that his choices for Cabinet positions are of men and women of proven integrity," MBC Executive Director Peter Angelo Perfecto said.

Truly inclusive growth
   
"We look forward to working with his economic team to ensure our continued upward trajectory as a shining emerging economy, address gaps that weigh down on our growth potentials and build the systems and programs that can make this growth truly inclusive," he said.

"The business community looks forward particularly to working with DOF Secretary Dominguez and NEDA Secretary Pernia to continue our Open Government Partnership commitment to hold regular public private high level dialogues to pursue our shared agenda for inclusive growth," he added.

Foreign business groups espouse the same sentiment of open to working with the Duterte economic team.

"I can say that AmCham and other foreign business groups very much look forward to meeting President Duterte's team and working with them to grow the economy through more investment, trade, and jobs," John Forbes said in a separate text message.

Forbes is the senior adviser of the AmCham and a representative of the JFC.

Economists noted the Duterte economic team has qualified members.

"These are the men he has chosen. I think they are qualified," Ateneo de Manila University economics professor Alvin P. Ang said.

A salient point among the appointees is their expertise in their respective positions.

"I support his choice of economic team... I think our economic think tanks are the right people in their offices. These people have track records in their respective fields," said John Paolo Rivera, program manager at the Asian Institute of Management.

"Hopefully, they can help President Duterte instigate economic reforms," he added.

Keep economy from stagnating

On the economic reforms the incoming administration should be prioritize, Rivera said it must reduce the budget deficits, maintain the path to economic growth, continue to improve the ease of doing business, and better tax reforms.

Ateneo's Ang said he looks forward to tax reforms and the standardization of the cost of doing business in the country.

Despite such vote of confidence, the economic team must be able to keep the economy from stagnating in order to have a real impact the will benefit the equities market.

"It's really about economic growth," said Luis Limlingan, business development head at Regina Capital Development Corp.

He noted that the continuity of the economic performance of the Aquino administration under Duterte's leadership may be good for financial markets in the long-term.

"They have a credible background and experience and it looks more continuity than change, meaning they're qualified," he said.

Duterte has yet to come up with replacements for the Department of Trade and Industry, the Governance Commission for Government-Owned and -Controlled Corporations, and the National Anti-Poverty Commission.

The appointed Cabinet officials are subject to confirmation by the Commission on Appointments.

Section 16, Art.VII of the 1987 Constitution notes those appointments of heads of executive departments, ambassadors, other public ministers and consuls, officers of the armed forces from the rank of colonel or naval captain needs confirmation.

The CA is an independent constitutional body that acts as a restraint against the abuse of the appointing power of the president by approving only those who are fit and qualified to ensure the efficient and harmonious functioning of the government. – With Jannielyn Bigtas and Ted Cordero/VDS, GMA News