Investors to focus on fundamentals amid drug-related ‘killings’ —business groups

Drug-related killings have given the country bad publicity, but investors will continue to focus on fundamentals, business groups said on Tuesday, a day after the mayor of Tanauan, Batangas was killed during the weekly flag-raising ceremony.

“It’ bad publicity but it won’t really have much impact on the people coming in. They would focus on fundamentals,” Philippine Chamber of Commerce and Industry (PCCI) Chairman George Barcelon said.

“I think it doesn’t really affect much ‘yung mga taong interesado na pumasok sa atin,” Barcelon told GMA News Online.

Tanauan City Mayor Antonio Halili was shot dead by a still unkown assailant Monday, and the police has since formed a task force to look deeply into the matter and review CCTV footage of the killing.

“Any story like that, there’s a tendency of that being sensationalized. In as much as—yes—it’s an isolated case. But when it’s picked up not only in print media but also on television, it gives bad publicity to the country,” Barcelon said.

He noted, however, that investor sentiment—particular of those who are really committed to enter the country—would not be dampened by such reports. They would look deeper into the real situation of the country, Barclon said.

Data from the Bangko Sentral ng Pilipinas (BSP) showed net inflows of foreign direct investment increased by 43.5 percent to $2.175 billion in the first quarter of the year from $1.516 billion in net inflows during the same period in 2017.

On the other hand, investment pledges or foreign investments approved in January to March by seven investment promotion agencies totaled P14.2 billion, down 37.9 percent from P22.9 billion a year earlier, the Philippine Statistics Authority reported.

“It might be more a result of rising interest rates ... Nevertheless, the plan to rationalize incentives given to some industries could pose a risk to foreign direct investments if not managed properly,” said Angelo Dumalagan, market economist at Land Bank of the Philippines.

Violence occurs worldwide

At this point, the killings have not necessarily reduced the country’s attractiveness to foreign investors, according to American Chamber of Commerce of the Philippines (AmCham) said.

“As a single incident, it will not reduce the country’s attractiveness to foreign investors,” AmCham senior adviser John Forbes said.

Violence occurs worldwide, Forbes noted.

“There is violence in many countries. Last, week in Maryland. This week in Batangas. While, we condemn violence, we also look to see if those responsible are brought to justice under the rule of law.”

Killings related to the government’s campaign against illegal drugs have been seen in other countries, but investments continue to come in, Barcelon said.

“Samantala naman itong mga drug-related killing, sa ibang bansa it’s in the news also but still, people still go there.”

According to data from #RealNumbersPh—a state initiaitve—the government’s consolidated data on drug-related killings showed 4,279 suspected drug dealers were killed from July 1, 2016 to May 15, 2018, while 143,335 others were arrested.

The killings and arrests stemmed from 99,485 operations during the 22-month period.

In 2017, Ozamiz City Mayor Reynaldo Parojinog and 14 others were killed in a predawn drug raid while policemen claimed they were serving search warrants on homes belonging to the political family.

In 2016, Albuera, Leyte Mayor Rolando Espinosa and supposed drug dealer Raul Yap were killed in an alleged shootout in Baybay City Provincial Jail.

Duterte has linked Halili’s killing to the mayor’s alleged involvement in illicit drug trade. — VDS, GMA News