Influential business groups said on Thursday they support the President Ferdinand Marcos Jr.’s move to recalibrate his administration, although many of them lauded the economic team’s performance so far.
They mostly back the Cabinet secretaries for doing well in propping up the economy.
The Makati Business Club (MBC) gave the economic managers a grade of 8 out of 10.
“Eight is a good score … It’s not always perfect,” Edgar Chua, chairman of MBC, said in a press briefing in Makati City on Thursday.
“The announcement made by the President is really to enable him to have a free hand in appointing or re-appointing people he believes will deliver in the second half of his term,” Chua said.
“And having everyone tender their courtesy resignation is a gracious way for those who will not be re-appointed,” he added.
The call, however, has drawn a mixed reaction from analysts, while others view it as a desire to improve government performance. Still others warn it could create short-term uncertainty and unsettle investor confidence.
Chua hopes President Marcos will be able to replace the cabinet officials who will not be re-appointed “so that there is minimal disruption in the continuity of the programs.”
Digital marketing solutions
Enunina Mangio, president of the Philippine Chamber of Commerce and Industry, said she was surprised by the president’s call for his cabinet secretaries to resign.
She said the government has been performing relatively well in managing the economy.
Mangio wants this call made by the president to bring in accountable and merit-based appointments, so that those who delivered and performed well will be reappointed while new appointees will be installed As soon as possible to avoid uncertainty and instability and not derail the economy.
“It is just unfortunate that economic growth has been undermined by developments at the political front,” Mangio said.
Alfredo Panlilio, president of the Management Association of the Philippines (MAP), said the president should find the appropriate talents for those he will replace “people who can effectively execute his government’s plans.
“We trust that capable, proactive, and committed individuals will be empowered and work together as a cohesive team to execute the nation’s plans to uplift the lives of all Filipinos and move us closer to the outcomes our people deserve,” Panlilio added.
Sergio Ortiz-Luis Jr., concurrent president of the Employers Confederation of the Philippines and the Philippine Exporters Confederation Inc., said the president should avoid a major revamp.
“Considering the situation, especially the geopolitics, the economic team has managed the economy quite well,” he said.
But Rafael Ongpin, MBC executive director, does not see a major revamp in the offing.
“We at MBC have a lot of respect, especially for the economic cluster. They are the best people for the job,” Ongpin said.
Jonathan Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said the president’s call is a decisive move, while Cid Terosa, senior economist at the University of Asia and the Pacific, said this could be taken in a positive light by businessmen and investors “as an adaptive response to the perceived needs of the country.”
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said this sends a good signal to the market–the willingness to bring about positive change in an effort to become more effective in delivering more results and by being more responsive to the needs of the people.
John Paolo Rivera, a senior research fellow from the Philippine Institute for Development Studies, said: “It is a significant political maneuver that could have both stabilizing and unsettling effects depending on how it is managed and what it signals moving forward.”
“Markets generally prefer continuity and clarity in policy direction. A sudden reshuffle especially without a clear timeline or rationale could prompt a wait-and-see stance among investors,” Rivera added.
Ateneo Center for Economic Research and Development director Ser Percival Peña-Reyes said the president’s directive adds even more uncertainty to a highly uncertain environment.
There is a need for a solid, closely coordinated Cabinet to navigate the country through uncertain times brought about by tariff wars and other external problems.
“Suddenly revamping the cabinet at this stage only brings more uncertainty. Those who will be called to fill in vacant positions might be left groping in the dark. The flow of activities in the bureaucracy might be hampered,” Peña-Reyes said.
Michael Enriquez, President of Sun Life Investment Management and Trust Corp., said there should be no drastic changes at this point that will have a negative impact on investments.
“It would be concerning if ever there would be a significant revamp of the economic team. This adds unnecessary uncertainty to investor sentiment.”
