Philippines counts blessings amid global financial crisis
19-NOV-2008 Intellasia | Manila Bulletin
Nov 19, 2008 - 7:01:00 AM
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| A bank teller in Manila counts Philippine peso currency on November 17, 2008. Remittances sent home by overseas Filipino workers grew 16.9% year-on-year in September despite earlier fears the global financial crisis could see a decline, the central bank said November 17. (AFP/Getty Images) |
Amid the global financial crisis, the Philippines "just has to count its blessings," among them the very low interest rates conducive to productive enterprises, inflation rate remaining at single-digit levels and continuing to decline, declining oil prices, and other positive aspects of the country and the economy.
Businessman Reghis M. Romero II, national president of the Chamber of Real Estate and Builders Associations (CREBA), underscored this in a speech at the recent CREBA national convention at the Subic Exhibition and Convention Centre at the Subic Free Port, Olongapo City.
Romero cited, among others, the blessings that account for the country's economic and financial stability amid a comparatively low-cost of living which can be the envy of other countries, including Association of Southeast Asian Nation (Asean) neighbours:
1. Despite the massive US financial meltdown and the resulting global credit crunch, the country's banking system remains stable. The bans with investments in US derivatives or secondary commercial papers have very minimal exposure to such highly speculative financial concoctions. The country will be affected by the global situation, but only to up to a certain extent.
2. The youth-dominated 84 million population and the Overseas Filipino Workers' consistently-rising remittances continue to power the consumer-driven economy in good or bad times.
3. The weakening of the peso against the dollar comes at a time of declining oil prices, thus curbing any rise in fuel imports while boosting the price-competitiveness of our exports.
4. Modest improvements in government tax collection efficiency, with some help from thr 12% EVAT, keep the country's fiscal position relatively healthy.
Romero said that many people abroad are losing their homes because of subprime mortgage fiasco. On the other hand, he said decent mass housing units are cropping up across the Philippine urban centres.
"Thanks to our industry and our own safety nets for installment sales, to our banking system for adhering to sound policies that limit exposure to high-risk ventures, thus minimising their non-performing loans and assets, to the government for its commitment to continue stimulating and pump-priming the economy while keeping inflation in check. All these amount to continued rise in real estate, housing and construction projects."
Talking of opportunities for the country, Romero said:
"In other words, the global crisis presents itself as an opportunity for our country and our industry to put its best foot forward and be noticed. As such, we don't have to look elsewhere for greener pastures. Neither you nor I have do a Moses to lead and bring us all to the promised land. The fact is, we are standing on it. And it's where we Filipinos proudly belong. We just have to do what we have to do, and rise to the occasion."
"Ironically, the global credit crunch tends to highlight
the unique advantage of the Philippines as a destination for foreign investments and tourism, and a preferred source of imports and skilled labour. It is just a matter of marketing the country all the more and even more vigorously. We have to find alternatives to whatever markets or foreign investors that we may lose. And we will get them in droves."
Romero cited "the strides that international marketing efforts of CREBA members under the CREBA International Foundation Inc. is proving to be the right direction for the industry. We shall push for more sales blitzes of this kind."
CREBA also started talking to the Contact Centres Association of the Philippins, the biggest association of call centres and BPO's to close in on this ever-growig market for specialised housing requirements.
The CREBA convention coincided with its 35th foundation anniversary as the country's largest industry organisation. Composed of real estate companies, developers, professionals and allied sectors, it has chapters nationwide and affiliates in the United States, Europe and Southeast Asian countries. It is a member of the International Real Estate Federation (FIABCI) based in Paris, France. FIABCI with 64 country-members,is the official consultative body of the United Nations on real estate matters.
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