The sharp decline in foreign investment, rather than weather or delays in government infrastructure spending, is behind the Philippines’ sluggish economy, Batangas 1st District Representative Leandro Leviste said in a DZRH interview on Saturday.
Leviste noted that foreign investment fell by 40% in August, contributing to the Philippine Stock Exchange hitting a five-year low.
“Ang sinabi nga noon ay 1.7 trillion ang nawala sa ating stock exchange dahil sa pagbaba ng investor confidence. Actually, ang hindi lang 1.7 trillion, kung i-compute nyo po ang... Pagbaba ng Philippine Stock Exchange sa iba pang mga Southeast Asian Stock Exchanges, baka 5 trillion pesos ang nawala sa ating ekonomiya dahil sa mga ongoing political issues,” he said.
The congressman warned that in the next two and a half years, GDP growth, foreign investment, and the stock market are likely to remain depressed.
“Baka nag-overreact ang mga foreign investors. Pero, that's the reality of the investing sector, where it's built on confidence. And unless we can show investors that there is a real change in the leadership of this country, then talagang hindi magbabago,” Leviste added.
Leviste also expressed concern over the impact on ordinary Filipinos. “Mananatiling mababa ang ating GDP growth relative to where it should be relative to the growing population and rate of inflation in our country and ang consequence niyan para sa ating mga mamamayan,” he said.
“Hindi magiging sapat ang pagdagdag ng mga trabaho at pagtaas ng ating sahod at dahil ang peso ay 59 approaching 60 pesos to 1 dollar na nga. Tataas din ang presyo ng mga bilihin dahil sa ating dependence on importation,” the congressman added.
On Wednesday, November 13, the Philippine peso sank to a new all-time low against the US dollar, closing at ₱59.17, intensifying concerns over inflation and import costs.
The lawmaker said restoring investor confidence requires serious anti-corruption measures. “Reducing wasteful government spending can be done immediately. Prosecuting high-profile figures involved in corruption will also help. There are still major congressman-contractors, like Congressman Edwin Gardiola, who has been linked to large DPWH projects,” he said.
“Targeting those truly responsible for buying and selling DPWH budgets will show the government is serious about anti-corruption,” Leviste added.
