Mindanao business leader bullish on PH growth

DAVAO CITY Sept. 3- One of the leading figures in the Mindanao business sector is bullish on the dynamic Philippine economy with many businesses growing under the rosy environment.

Vicente Lao president of the Mindanao Business Council said that the 6 – 7% growth in the GDP (Gross Domestic Product) is a very good indicator considering that China’s growth is slowing down and the United States showing downturns.

Lao who is also the Regional Development Council co-chair that the country is enjoying very good economic fundamentals. “We are just a notch below investment grade.” Lao added.

He said an investment grade would mean cheaper loans and lower risks for investors that could spur in more investments in the country.

The Mindanaoan business leader said that during a visit by a delegation coming from the Asian Development Bank, the ADB officials observed the increased per capita income of $2,200.  One delegate said that if the per capita income reaches $2,000 there is nothing to go but up.

Among the growing sectors Lao cited in an improving Philippine economy is the Business Process Outsourcing industry is experiencing growth which could mean new investments and more jobs for many Filipinos.

Lao said that Davao is now fast reacting to the growing trend of growth in the economy, particularly in the BPO industry. He said that the City Government has identified key priority areas of investments and this included Information Communication Technology (ICT).

Among the city’s priority investment areas included tourism, agri-business and property development. According to data from ICT Davao, a group of ICT stakeholders in the city, they have tracked 67 BPO companies in Davao with a work force of 6,000 people.

Meanwhile  Lao said that part of the growth comes from infrastructure spending. “If you noticed a lot of infrastructure projects going on, it is not just in Davao but it is nationwide.” Lao said.

The simultaneous infrastructure developments he said comes from the new policy of the national government in which the next year’s budget is already being approved which allows the Department of Public Works and Highways to bid out and implement projects in the early months of the year.

Lao said that infrastructure development is a great way to pump prime the economy as it usually has a big multiplier effect.  (PIA/RG Alama)