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Written by Joyce Duldulao
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Saturday, 09 January 2010 |
 PamCham’s Board of Directors expressed optimism for countryside business in 2010. During PamCham’s 65th Board of Directors’ meeting last January 5 at Max’s Villa Del Sol Restaurant, the members of the board all agreed that compared to last year, 2010 has a far brighter outlook. According to them, this is attributed to the coming election which is expected to trigger extensive economic activities providing income opportunities for SMEs and generating much needed employment. Another factor considered by the board were the pump priming measures implemented by the national government particularly on infrastructure intended to cushion the negative impact of the global economic crisis in 2009.
Each member of the board expressed their own sector’s analysis of the past year and suppositions for 2010. The food sector is always the primary beneficiary of the elections taking into account the numerous meetings and parties initiated by the political parties for and in support of their candidates. Post election apprehensions though were raised by VP Jess Nicdao who disclosed that the food industry had always experienced a significant decline in sales immediately after each election. He declared that the restaurant and fast-food industry had always taken pains to factor this inevitability into their business plans.
The export sector was the hardest hit in the Global Financial Crisis and according to Director Boy Bituin, other export markets had been explored and tapped to sustain the manufacturers. Interestingly enough, what sustained the industry was the local market which proved to be quite lucrative.
The banking sector is also seeing positive developments for 2010 primarily because of the OFW remittances which maintained or even increased in volume despite the economic crisis abroad. In fact the $40 billion Gross International Reserves of the Philippines is indicative of the economy’s capability to withstand the dismal impact of the global financial crisis. The dollar is expected to hover between P45 to P47 and the low borrowing rates will entice local business to avail of bank loans.
The education sector on the other hand, indicated that enrollment had been steadily dropping over the years which may signify an assessment of the industry in terms of the rising cost of education in private educational institutions vis-a-vis the state colleges.
The Real Estate and Housing industry declared that 2008 and 2009 were very good years and indicated the 2010 will not be different. This is because of the low interest rates of the PAG-IBIG fund enabling families from the low middle income and low income strata to become homeowners instead of just renting. The sector expressed concern however on the rather restrictive regulatory policies currently being implemented by the government which threatens to undermine the gains of the past two years.
The distribution industry likewise indicated positive developments as a result of the China-ASEAN zero tariff implementation. Of late, foreign companies have been making explorative inquiries on the local distribution of their products which is gives confidence to local distributors.
Concern over the dependence of the Philippine economy on the US market, -which still has to overcome its difficulties, rendering our local economy still vulnerable, was also stressed by the directors. There is also the very anemic local manufacturing industry which continually suffers from the influx of cheap and affordable Chinese products.
Given all of the above analysis and forecasts, it is hoped that 2010 will enhance countryside business. Staring the year with optimism will certainly be an explicit action toward achieving this aspiration.
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