will post-election philippines continue to be conducive for fdi? | the stance of the presidential...

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Will post-election Philippines continue to be conducive for FDI? | The stance of the presidential candidates

Once considered the “Sick Man of Asia”, the Philippines has seen rapid economic

progress in the past six years under the leadership of President Benigno Aquino.

The country has risen from decades of political instability, a boom-and-bust

economy and inherent corruption, to become the second fastest growing

economy in the world in 2015. With only months left in his six year term, the

popularity and approval of President Aquino remains high; however, the Filipino

Constitution bars a second term in office for the President. As the battle to replace

him heats up between Grace Poe, Mar Roxas, Jejomar Binay and Rodrigo Duterte

ahead of the General Elections on the 9th of May, investors are concerned over

how conducive an environment for Foreign Direct Investments (FDI) his successor

will strive to create.

A four horse race to the hot seat

Supun Walpola [email protected]


20160406

Mar Roxas - Liberal Party Roxas is the Flag bearer of the ruling Liberal Party and President Aquino's endorsed candidate.

Jejomar Binay – United National Alliance Vice President Binay leads the opposition camp

contesting under his newly formed UNA.

Grace Poe - Independent Senator Poe was sought to be Roxas’s running mate, but later chose to contest separately as an independent.

Rodrigo Duterte – PDP Laban Party

Duterte serves as the long standing mayor of the Davao City, for over 20 years

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35%

28%26%

24%

18%

23%

17%19%

2% 2%

SWS Survey (as at March 22nd) Pulse Asia Survey (as at 20th March)

Poe leads on both SWS and Pulse Asia surveys two months ahead of elections

Poe Duterte Binay Roxas Santiago

The outlook for FDI positive as Poe continues to lead in a tight battle

Source: SWS/Pulse Asia

Foreign Ownership Restrictions

Supportive for lifting restrictions on foreign equity ownership

Supportive for lifting restrictions on foreign land ownership

Opposes lifting restrictions on foreign ownership

Infrastructure Development

Promises an allocation of over 5% of the GDP from the budget

Supports continuation of the PPP program

Focus on renewable energy development

Tax Reforms

Supports personal income tax cuts

Supports corporate income tax cuts

Opposes Tax Reforms

Anti – Corruption and Law & Order

Past track record of standing against corruption

Prior allegations on corruption and fraud

Prior allegations on Human Rights violations

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The latest (late March) SWS and the Pulse Asia surveys indicate Senator Grace Poe

leads the pack. However, she does not still command a convincing majority over

her counterparts.

Poe comes across with a market-friendly, liberal outlook supportive for much-

needed constitutional and tax reforms for the Philippines to remain competitive

in the region. Thus, standing on an election platform that seems to bring the best

prospects for potential investments. Despite a more stringent stance towards tax

and constitutional reforms, Mar Roxas as the Liberal Party flag bearer, is likely to

create a stable environment for investments underpinned by the good governance

and sound economic policies that were once proven successful under the Aquino

administration.

Similarly, notwithstanding his populist attitude and alleged corruption, under Vice

President Jejomar Binay, the investment backdrop will continue to remain largely

positive, owing to his extensive experience in the political landscape, the pledge

to continue with anti-corruption measures and the focus on a far-reaching

infrastructure development. The Davao City Mayor – Rodrigo Duterte continues

to be the wild card; as his ambiguous policies, alleged human rights violations and

the strong law and order platform are likely to create uncertainty among investors.

The overall direction for investors ahead of the May elections should be “cautious

but optimistic”. As the commitment of the presidential hopefuls to continue on

the anti-corruption platform, along with improved infrastructure and reduced

bureaucratic red tape should bode well in brightening the prospects for FDI into

the growing Filipino industries.

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From good governance to good economics: FDIs triple under Aquino government

During the Aquino administration (2010-2015), the Filipino economy grew at a

CAGR of 6.2%, on the back of a pro-reform and anti-corruption policy platform,

compared to a CAGR of 4.4% during 1999 to 2009. This positive economic

performance saw Philippines being notched up into investment grade by global

credit rating agencies in 2012 (S&P: BBB, Fitch: Baa2 and Moody’s: BBB-). The

country remains at its best debt position in 18 years, with a Debt to GDP of 44.8%

in 2015 (lowest since 1996 and down from 54.8% in 2009) and stands on a budget

deficit of under 1% of GDP in 2015, following strong fiscal consolidation efforts.

Net FDIs into the Philippines grew at a CAGR of 34.4% over 2010-2015 due to

rekindled investor confidence against this encouraging economic backdrop; a

threefold increase in 2015 to USD 5.72 billion from USD1.3 billion in 2010, when

Aquino assumed office.

Source: The Bangko Sentral ng Pilipinas/World Bank

Despite the sizable inflow of FDIs into the Philippines in recent years, the country

continues to lag behind in the ASEAN region. Even as the FDI inflows reached an

all-time high in 2014 (USD 6.20billion), the Philippines was placed 6th in the

ASEAN region and last among the ASEAN-6 in terms of FDI inflows. Out of the

total FDIs into the ASEAN in 2014, the Philippine’s share amounted to 3.2%, which

is one-tenth of the investments into Singapore, one-third of Indonesia and half

of Thailand.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015G

DP

Gro

wth

(%

)

Net

FD

I (U

SD B

illio

n)

Net FDIs into the Philippines have tripled under the Aquino administation

Net FDI GDP Growth

Arroyo (2000-2010) Aquino (2010-2016) Estrada (1998 – 2000)

05


Source: World Bank

The poor competitiveness compared to other countries in the ASEAN can be

attributed to a) constitutional restrictions on foreign asset ownership, b) the

inherent corruption and red tape and, c) the lack of adequate infrastructure. Thus

the challenge, now that the Aquino administration has transformed Philippines

into an economic bright spot worthy of attention, is to maintain momentum and

overcome the shortcomings the present government has left unanswered.

All candidates vow to follow the “Straight Path” – the Aquino philosophy of good governance

The subject of good governance and anti-corruption was at the forefront of

Aquino’s campaign in 2010. Delivering on the promises made, President Aquino’s

efforts on anti-corruption and policy reforms has led to a more transparent

business environment within the country. According to the Ease of Doing

Business Index, the Philippines was ranked 103rd in 2016, notching up over 30

positions compared to 134th occupied in 2010. Overall, the good governance

practices has been a key driver in luring investments to the Philippines by

reinforcing the investor confidence through a transparent policy platform, and

will continue to remain a priority for the new administration.

6.209.20 10.80 12.57

22.60

67.52

0

10

20

30

40

50

60

70

80

Philippines Vietnam Malaysia Thailand Indonesia Singapore

FDI I

nfl

ow

s (U

SD B

illio

n)

Philippines attracts the lowest FDIs in 2014 among the ASEAN-6

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Source: Transparency International

Mar Roxas of the Liberal party vows to carry forth the “Straight Path” – the

Aquino philosophy of anti-corruption and good governance. However, the rest

of the pack have also endorsed the “Straight Path” and promise continuity of

Aquino’s efforts to lead the country corruption-free. Senator Grace Poe comes

across with a clean image, brought about by her participation in the Senate's

investigations into corruption cases of government officials. Poe also authored

several Senate Bills aiming to strengthen the capacity of investigating and

prosecuting government officials accused of crimes and is likely to follow through

on her anti-corruption agenda from the top seat.

Duterte, during his tenure as the Mayor, made Davao the 9th safest city in the

World. Thus, comes with a proven track record that suggests Philippines would

continue to be a more disciplined nation under him. However, Duterte faces

allegations against human rights violations during his time as the Mayor of Davao.

He has been dubbed "The Punisher" by Time magazine, and has been criticised

by human rights groups led by Amnesty International for tolerating extrajudicial

killings of alleged criminals by the vigilante Davao death squads. In 2015 Duterte

publically admitted his connections towards the murders, emphasizing that his

efforts were for greater good, and warned that he may kill up to even 100,000

criminals if required to ensure the peace and order of the country.

The gloomiest of the track records lies withof the current Vice President Binay,

who has been in the center of various corruption scandals over the past few years.

However, Binay has rejected any accusations of corruption and has supported

key initiatives such as the bringing up of the freedom of information bill, to

improve the transparency of the administration. Thus, the general outlook

among all presidential bids remain positive towards the practices against

6577

92102

117 121131

141 139134

129

10594

8595

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Philippines improves its ranking in the Courruption Perception Index under the aquino

government from 139th to 95th

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corruption and establishing law and order, which under the past regime was a

proven medicine to boost investor confidence.

Source: Facebook/GMA

Candidates positive on constitutional reforms to lift foreign ownership restrictions

Perhaps the biggest deterrent in attraction of FDI’s in to the Philippines has been

the so called 60-40 rule under the Filipino constitution, which limits the foreign

equity ownership of local firms. While the general perception is of a 40% cap on

ownership for foreigners, in reality the ownership restrictions vary across the

industries. In general, 100% foreign ownership on enterprises is accepted unless

the industry falls under the Foreign Investment negative List. However, despite

the liberalisation of the foreign investment laws under the Aquino administration,

several key growth industries such as; media, energy, telecommunications and

land ownership still remain on the restricted boundaries for foreign investments.

All candidates, except Roxas have been largely positive on the necessary

constitutional reforms necessary to ease the foreign ownership restrictions.

1%

2%

7%

16%

21%

21%

25%

34%

64%

0% 10% 20% 30% 40% 50% 60% 70%

Trafficking

Environment

Infrastructure

Health

Social Welfare

Defense & Foreign Policy

Education

Economy

Transparency

Transparency is the most talked topic on Facebook regarding the election

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Source: World Economic Forum

Binay has vowed to amend the 40% baseline on the foreign investments, as a key

priority in his economic plan. Binay expressed that under his administration the

goal will be to liberalise the entry of foreign investments in prime economic

sectors such as infrastructure, energy and telecommunications. However,

indicated he is still uncertain on the right limits for foreign control.

Poe in supporting the constitutional reforms stated that she will open up the

foreign ownership for key industries such as media, utilities, academic

institutions and the medical profession. However, she continues to remain

stringent over restrictions on foreign land ownership in the Philippines. Perhaps

the most open on his intentions has been Duterte, whom has agreed on a 30%-

70% ownership platform in favor of foreign investors and remains positive over a

40-year lease of Filipino land to the foreigners, renewable for another 40-years.

Roxas, however remains wary of the constitutional amendments, expressing that

the constitutional restrictions is not what that confines foreign investments into

the country, instead ranks red tape, corruption and tax policies as more bloating

factors that keeps the investors away from the Philippines. Additionally he had

expressed that a constitutional reform will put the potential investments in a

“substantial pause” as the investors will follow a “wait and see” approach

throughout the reform agenda, which could practically take up to three years to

complete. Thus, suggesting constitutional reforms will not be a strategic priority

under his administration.

3

18

37

6369

87

0

10

20

30

40

50

60

70

80

90

100

Singapore Malaysia Thailand Vietnam Philippines Indonesia

Ran

k (1

=Bes

t)Philippines ranks among the lowest in the ASEAN-6 in terms of Business Impact of

Rules on FDI in 2015

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Overall, while the general sentiment on lifting the baseline on foreign ownership

seems positive among the candidates, as Roxas himself have indicated, such

amendments could only be probable over a substantial timeline. Thus, while

lifting ownership restrictions could be the way forward for Philippines in drawing

major investments into the country, a stable economic policy free from

corruption and red tape will be the priority for the Philippines in maintaining the

positive momentum for FDI in a post-election environment.

Tax reforms unlikely in the near term given the priority for inclusive growth

Source: Rappler

The Philippines currently has the highest corporate income tax rate of 30%,

among the ASEAN-6. This was largely due to the fiscal consolidation efforts under

the Aquino government, which saw the income taxes being held constant.

Whereas other ASEAN peers such as Thailand (20% from 35% in 2010) and

Vietnam (22% from 35% in 2010) in the recent years have invested in tax cuts in

order to improve the competitiveness of its business environment. Incidentally

Singapore, which has the highest foreign direct investments in ASEAN holds the

most attractive corporate tax package. Candidates are split on the subject of tax

reforms, with Poe and Binay supporting the corporate tax cuts, while Roxas and

Duterte suggest otherwise.

17%

20%22%

25% 25%

30%

0%

5%

10%

15%

20%

25%

30%

35%

Singapore Thailand Vietnam Malaysia Indonesia Philippines

Philippines has the highest corporate tax rate among the ASEAN-6

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“The country’s tax system is uninviting as the region moves toward economic

integration” Binay had expressed, indicating that reduced corporate income tax

rates will entice foreign investors to do business in the Philippines. Binay has

emphasized that the government should gradually, or within 5 years, reduce the

current corporate income tax rate from 30% to a more realistic and reasonable

rate that is consistent with the ASEAN peers. “We want to really be competitive

when ASEAN economic integration happens. We have to be able to compete

globally and make it enticing for investors to set up businesses here. Why would

they want to do that if they have to pay a higher corporate income tax but with

the less-than-ideal infrastructure that we can offer them?” said Grace Poe,

running on a pro-tax reform agenda for the election.

“It’s a zero sum game” said Roxas expressing his view on the tax reforms, hinting

that in vowing to continue the efforts of Aquino on social security and poverty

alleviation, a corporate tax cut might not be in his governments’ priorities.

Standing on the same ground with Roxas on the tax reforms, Duterte said, “I need

money for my programs to create jobs, solve criminality, hunger and restore

peace and order. I need money to run this country”, indicating that corporate tax

cuts will not be the strategy in boosting investments by either of the candidates.

Even in the case of Poe and Binay, the timelines for tax reforms remains grey, as

both have vowed on continuity of the social security platforms under the present

administration, and the income for funding such initiatives at least in the medium

term will be from the corporate tax revenues, as both candidates have already

pushed for a reduction in personal income taxes for lower tax brackets.

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Government spending on infrastructure to rise with the outlook for regional development

A major criticism of the Aquino administration was its apparent underspending

on infrastructure projects, where the government was said to have underspent

PHP 623 billion during 2010-2014, on the back of a stringent fiscal policy. In fact

over the past decade, the budget allocation for infrastructure development was

on average 2%-3% of the GDP, which saw Philippines lagging behind on key

infrastructural platforms such as airports, power, roads, seaports, and

telecommunications. As per the WEF Global Competitive Index of 2015, the

Philippines was ranked lowest among the ASEAN-6 in terms of overall

infrastructure quality. However, with a fiscal deficit of less than 1% of the GDP,

all the candidates remain positive over increased spending on infrastructure

development from the strong fiscal space created under the Aquino

administration.

“One mega project per region and one major project per province”, Binay

highlighted on his plan for infrastructure development in an attempt to take the

economic growth beyond the metro cities. Binay also expressed his intentions on

spending 5% of the GDP on infrastructure development of the country while Poe

calls for a government infrastructure budget of 7% of GDP.

Roxas vows to continue and expand the Bottom up Budgeting (BuB) program

under the Aquino administration, accordingly promising a budget of PHP 100

million per region under his administration. Whereas Duterte will put up

economic zones in each region to create more jobs in the rural regions, such that

under his presidency, every region would have an economic zone. In general,

regional infrastructure development, led by the need for inclusive economic

growth has been the baseline agenda of the presidential bids, which could in turn

create a pro-investment backdrop outside the congested metro cities.

The Aquino government initiated a number of public-private partnership (PPP)

projects towards the end of its term, in an attempt to entice the private sector

investment in large scale infrastructure projects. The number of PPP projects

underway as of 2015 stands at 12, however out of which only two projects have

been completed as of yet. Thus concerns have been raised on the fate of the PPP

program post transition of power, as historically, pet infrastructure projects of

the incumbent administration are either delayed or scrapped under a new

political regime.

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Binay described the PPP program of Aquino “an epi-center of failure” owing to

the delays in implementation and progress, however vowed on the continuity of

the PPP platform with “better” implementation, minimizing its current

inefficiencies. The rest of the candidates have also been largely positive on the

continuity of the PPP plans, with Roxas as the stand bearer of Aquino regime and

Poe, who looks into PPPs to develop the transport system of the country. Poe

claimed that she would complete seven airports through PPP in the first half of

her term and promises on the fast-track completion of the proposed MRT7, LRT6,

Skyway 3, LRT2 East Extension, Northrail and Southrail projects.

The promise of the candidates on the continuity and the fast track

implementation of the PPP program, along with grander allocation from the

budget on infrastructure development should bode well in opening up

opportunities for potential investments in big-ticket state infrastructure projects

under the new administration, with over 20 PPP projects already in the pipeline.

Manufacturing, an investment priority among all candidates in a bid to ease unemployment

The manufacturing sector topped the FDI into the Philippines in 2015, with net

inflows of USD 772.7 million owing to a value share of 13.5% of the total net FDIs.

The manufacturing sector constituted over 20% of the Philippines GDP in 2015,

and outpaced the real GDP growth of 5.8% by growing at 8.0% YoY from 2014.

The fortunes of the manufacturing sector is set to improve with the ASEAN best

positioned to lure FDI from a slowing down China, with many investors seeking

viable alternatives. The Philippines has been an attractive destination in

particular for Japanese manufacturers, who have already doubled it’s the share

of FDI inflows into the Philippines in 2015 from the previous year.

“Manufacturing is important because it gives quality long term jobs”, says Roxas

emphasizing on his promise to create six million jobs. Roxas intends on creating

one million jobs each year within his six year term through attracting investments

in to the manufacturing sector. Unemployment has been a focal topic among the

candidates as Philippines continues to experience an unemployment rate of 7%-

8% for the past decade, with further roughly 18% underemployed – despite the

rapid economic growth. The unemployment in the Philippines have been largely

driven by a weakening agricultural sector which has seen over 654,000 jobs being

shed let alone in 2014.

Following Roxas, both Binay and Poe also perceives investments into the

manufacturing sector as a viable alternative and an immediate remedy for the

country’s growing unemployment among the semi-skilled labour.

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In an attempt to boost the investments into the manufacturing sector, the

candidates are focused on improving the energy platform in the country. The

Philippines is currently among the highest in terms of energy costs in Asia, largely

due to shortages in the power generation and supply. The Economic Intelligence

Unit forecasts the demand for power in the Philippines will outpace the supply

by 2020. As per Department of Energy estimates, the Philippines will need an

additional 11,400 megawatts (MW) of generating capacity to meet the energy

demand from 2016 to 2030. Additionally the Philippines continues to be the only

country in the ASEAN which does not receive government subsidies for energy

development, thus resulting in higher prices compared to the region.

The solutions of the candidates for the energy crisis lies largely in the renewable

energy sector. Roxas is to rely natural gas, citing that it is cheaper compared to

other clean or renewable sources of energy and will considerably bring down the

initial cost of investment compared to other renewable sources, which would

eventually be passed on to the consumers defeating the purpose of coming up

with stable and cheaper electricity. Poe, in her 20-point agenda for governance

has emphasized that renewable energy development will be a key priority under

her administration, which will also mandate power distributors to source a

portion of their energy from renewable energy suppliers. Poe also remains

positive on pricing reforms, in a measure to cut down on the higher energy costs

in the manufacturing sector. Meanwhile, Binay calls for a five pillar platform to

solve the energy crisis in the Philippines, targeting self-sufficiency in energy

through private investments in natural gas and renewable energy.

On a different note, Duterte plans on revitalization of the country’s steel industry

by means of sustaining economic growth. The apparent steel consumption in the

Philippines saw a rapid growth in recent years, increasing from 4.00 to 7.33

million metric tons in 2014, growing at a CAGR of 16.3% driven by the rapid

infrastructure development and the construction activities within the country.

However 80% of the steel demand in the Philippines continues to depend on

imports despite sitting on over 300 million metric tons of iron ore reserves.

Duterte claims the steel industry to become the backbone of industrialisation in

the Philippines, through catering the needs of a wider range of industries that

would depend on steel inputs – thereby opening up potential for steel and steel

related industries in the Philippines.

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Source: Steel Statistical Yearbook

The outlook for BPO sector remains positive as presidential hopefuls pledge state support

The BPO sector has been the most attractive for foreign investments, which

constitutes over 20% of the total FDI projects currently in operation in the

Philippines. The BPO sector has been a major driver of the Filipino economy over

the past decade, becoming the highest contributor to the GDP of the Philippines

at 35% in 2015 from a mere 0.75% in 2000.

Source: The Bangko Sentral ng Pilipinas

3.04 3.12

3.74

3.04 3.08 3.163.40 3.56 3.43

4.00

5.11

6.01

6.71

7.33

0

1

2

3

4

5

6

7

8

2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

in T

on

nes

Mill

ion

sApparent steel consumption in the Philippines has grown at a CAGR of 16.3% from 2010

0.33 0.380.82

1.832.38

4.29

5.36

6.96

7.82

0

1

2

3

4

5

6

7

8

9

2005 2006 2007 2008 2009 2010 2011 2012 2013

FDI L

evel

(in

USD

Bill

ion

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The FDI in the IT/BPO sector has grown at a CAGR of 48.6% between 2005-13

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Hailed as the “Father of the BPO industry in the Philippines” Mar Roxas vows the

continuity of the support to the BPO sector of the country. Roxas as the Secretary

of Trade & Industry from 2000-2003, initially drafted the campaign “Make IT

Philippines”, which saw the platform to create the IT/BPO industry to grow,

through infrastructure development, law making and global promotion of the

industry. Thus, the BPO sector could expect to ascend under a Roxas

administration. In fact the development and the protection of the BPO sector

seems a common platform among all the candidates, as both Binay and Duterte

have also prioritised the development of the BPO sector in their mandates. The

Davao city under Duterte is already a leading BPO location in the world, ranking

66th in the world after Manilla (2nd) and Cebu City (7th). Binay considers the BPO

sector to be a priority in terms of employment generation.

Concerns were raised however, on the stance of Senator Poe on the BPO sector

of the country; as the rumors on social media hinted the hostility of Poe towards

the BPO sector. However, the Poe camp have fully denied such allegations, and

have openly expressed support to the development of the industry. In fact, Poe

has expressed her willingness to establish Dumaguete City as a hub for

information and communications technology (ICT)-based industries to create

more opportunities for graduates in the renowned university town. She

emphasized that the local government can work closely with the ICT Association

of Dumaguete and Negros Oriental in developing the ICT workforce of the city

and providing free BPO training programs alongside university placement

systems to facilitate an internship-to-employment system for the potential

workforce. Poe has also emphasized on the need for faster and cheaper internet

in the Philippines under her 20-point agenda, which would be a key

infrastructural requirement for the expansion of the IT/BPO sector in the

Philippines. According to the Internet metrics provider Ookla, the Philippines

ranked 21st out of 22 countries in Asia with the slowest Internet download speed,

evident of the poor IT infrastructure in the Philippines.

The prospects for the BPO sector in the Philippines continue to remain bullish

with the Philippines Competitive Report for 2015 by Deloitte projecting the

industry to grow a CAGR of 17% to reach a target of USD 48 billion in revenue by

2020, accounting for 20% of the global industry value. Deloitte further expects

the BPO sector to diversify from the largely call-center dominated operations to

other services such as healthcare information management, gaming, and

animation.

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Candidates to follow a pro-mining agenda amidst the pressure from green groups

Philippines is considered to be the 5th most mineral-rich country in the world for

gold, nickel, copper and chromite worth reserves over USD 840 billion. However,

since 2011, government has not actively pursued investments in mining and

mineral development, opting to focus on reviewing the current fiscal regime for

mining. In 2012, mining was excluded from the government’s Investment

Priorities Plan (IPP) and all incentives to the industry under the Mining Act and

the National Internal Revenue Code have been removed. The policy change was

premised on the notion that government’s share in revenues from the mining

industry were significantly lower compared to the cost of the environmental

depletion brought about by mining activities. President Aquino issued an

Executive Order in 2012, forbidding the signing of new mineral agreements until

a new mining revenue sharing scheme was legislated. The Mining Industry

Coordinating Council introduced a higher tax on the mineral industry in 2015, of

10% of the gross sales or a 55% share in net revenues, however has not been

legislated yet.

Binay openly criticised the present government for putting the mining industry in

a “limbo”, and expressed his support towards responsible miners, while raising

the concerns that the proposed higher taxes will further deteriorate the global

competitiveness of the Filipino mining industry. However environment groups

continue to urge the public not to vote for “pro-mining” candidates in the

elections, tagging Roxas and Binay in their campaign. “If these candidates will be

elected, we expect an increased entry and operation of foreign and big mining

companies who will further grab our lands, destroy our ecosystems, and plunder

our resources,” said Clemente Bautista, National Coordinator of the Kalikasan

People’s Network for the Environment, one of the convening organizations in the

campaign.

On a different note, Duterte recently accused Roxas of being supported by

billionaire businessman Eric Gutierrez, CEO of SR Metals, Inc., a controversial

mining firm which was subjected to a Senate investigation for the allegedly illegal

shipment of nickel ores. Additionally Roxas’s Statement of Assets, Liabilities and

Net worth (SALN) reveals that Roxas has business interests and financial

connections in seven different mining corporations, hence being rightly accused

by the environmental groups for his pro-mining agenda.

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However despite not being accused of a pro-mining agenda, both Poe and

Duterte have also expressed that they will support responsible mining under their

administrations. Duterte stated that he will be supportive for mining but under

the stringiest of environmental standards, and even showed willingness on

leasing out land and islands for the developers for 30 to 50 years and a revenue

sharing scheme up to 30%-70% in favor of the investor. Overall, all presidential

bids have shown their keen interest in exploiting the untapped potential of the

mining industry as one of the country’s next boom sectors.

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