Foreign investors put PHL investments on hold after Duterte's remarks – AmCham official

Foreign investors have put on hold their planned investments in the business process outsourcing sector (BPO), after the recent pronouncements of President Rodrigo R. Duterte against the United States, the American Chamber of Commerce of the Philippines (AmCham) said on Monday.

"(They) have decided not to go ahead is what we were told," AmCham Senior Advisor John Forbes said in a text message. He noted some investors looking to set up shop in the Philippines, specifically in the BPO sector, have decided not to push through with their plans at this point.

The President said earlier this month he might "break up" the Philippine alliance with the United States, and warned the US would lose its alliance with the country if it would not stop treating the Philippines like a "doormat."

He also lashed out at international bodies, daring the US, the European Union, and the United Nations to withdraw aid to the Philippines.

Asked to elaborate on the decision of foreign businessmen to put investments, Forbes said he was not aware of how much it would translate in terms of foregone revenues.

"I am not aware of any such estimate and would hope it is not large," Forbes said. He did not name the foreign investors.

While the BPO sector employs over a million people in the country, its particular presence boosts local economies and help businesses flourish. The monthly rental fees of a 1,000-seat operation alone could reach P1.950 million to P4.550 million.

On the back of the gains in the industry and services sectors, which count BPO as part and parcel, the Philippine economy grew by 7 percent in the second quarter of the year, the fastest since the economy expanded by 6.5 percent in the fourth quarter of 2013.

No report

The Department of Trade and Industry (DTI), however, has not received any report of foreign investors canceling investments in the country.

"Wala hong na-re-report sa amin na na-cancel. I have yet to see. Baka hindi pa pinaabot samin. I cannot comment. Hindi ko din alam 'yan, eh," Trade Secretary Ramon Lopez told reporters on the sidelines of a signing ceremony in Quezon City.

"The numbers are not showing all those perceptions or allegations because as we've been saying, I think they see huge potential pa rin dito satin. The opportunities for growth are still there," he said.

"The fundamentals are there – the parameters of investment – meaning the size of the market is there," he added. — VDS, GMA News