BAGUIO CITY – The Cordillera office of the National Economic Development Authority (NEDA-CAR) disclosed ‘hot money’ is the one being pulled out of the stock market by enterprising players contrary to the revelation of various analysts that foreign investors are now pulling out their investments in the county because of the alleged extra-judicial killings and the bad mouthing of foreign leaders by no less than President Rodrigo R. Duterte.
Milagros A. Rimando, NEDA-CAR Regional Director, said ‘hot money’ is considered as money that was easily placed and could be easily withdrawn like what has been happening in the country’s stock market that contributed to the weakening of the peso against the dollar.
“What are now being pulled out are the so-called hot money that were placed by stock market players which could easily be withdrawn by selling the stocks and venturing to other emerging stock markets,” Rimando stressed.
The NEDA-CAR official explained with regards the investments, it could not be easily withdrawn with a wink of an eye because such investments had been place in huge infrastructures that are the foundation of major foreign and local businesses in the different parts of the country, thus, the reported pull out of foreign investors of their investments in the country is unlikely to happen the soonest.
She explained reports on potential withdrawals of foreign investors are just creating unsatisfactory conditions because it is not that easy to withdraw investments that had been used to put up buildings and purchase of units of equipment.
According to her, there is no point to be alarmed yet over the reported withdrawal of investments by foreign investors because there are other major factors that have contributed in the weakening of the peso against the dollar, thus, the business climate in the country still remains robust.
Rimando added economic analysts have predicted a sustained economic growth for the country in the coming years that is why reports on possible withdrawal of investors is rather unlikely considering the strong pronouncements on the government’s anti-drug campaign that keeps the situation in a normal condition.
Rimando claimed the country still remains a potential investment haven for foreigners wanting to infuse their capital on prospective businesses as the country’s economy is one of the fastest growing economies in the Asia-Pacific region over the past several years.
She asserted the Cordillera is one of the potential investment areas for ecotourism, business process outsourcing, agriculture, semi-conductor and electronics industries, among others.
Rimando expressed confidence that the ‘hot money’ withdrawn by stock market players will again be brought back once the situation in the country stabilizes to sustain the economy that is instrumental in achieving inclusive growth for the country.