INVESTMENT in the Philippines is expected to grow over the medium term, with more opportunities opening for the private sector as the economy continues to expand.

"The Philippines is a rising star in the investment universe," Deputy Treasurer Sharon P. Almanza said in a keynote speech at an investment forum yesterday.

"The pressure is upon us to deliver... but we need the investor community to continue to fuel our rising star," added Ms. Almanza, who delivered the speech in behalf of National Treasurer Rosalia V. de Leon.

With the economy continuously growing above trend, she said this would provide the country "positive momentum for takeoff."

First semester growth was 7.6%, above the 6-7% target, and many analysts have recently upgraded their forecasts for the Philippines.

Macroeconomic fundamentals -- boosted by the appropriate fiscal and monetary policies -- are also providing ample buffers amid uncertainty in the global environment, Ms. Almanza noted.

"More positive news will continue to bolster our case to investors... and with the country gaining investment grade status from the three major credit raters, this will provide more lift for the economy," she said.

The view was shared by Luz L. Lorenzo, senior vice-president of Maybank ATR Kim Eng, who said the outlook remained positive.

"With the uncertainty in the markets, the best defense is a strong economy. And with the Philippines continuing to be driven by domestic demand, with its young population driving strong consumption, investments can only contribute more and more to growth," Ms. Lorenzo said.

Maria Theresa Marcial-Javier, senior vice-president at the Bank of the Philippine Islands, said the country should move to capitalize on its gains.

"With the economy's growth increasingly becoming more domestically led, opportunities abound for the consumer, retail, and property sectors," Ms. Marcial-Javier said.

"The environment now provides the government and private sector alike opportunities for expansion and growth ... But sustained growth will need to be coupled with an increase in income to ensure growth trickles down to all sectors," she added.

Gerald D. Baldivia, managing director at Angeon Advisers, Ltd., added that opportunities for improvement also included the education, health and tourism sectors.

"This will support the production and buildup of physical and human capital that will give the economy a broader support base moving forward," he said.

"The Philippines used to have a very challenging investment environment, and that's changing now. We expect all these to translate into more investments in the future."

Moving forward, officials and regulators pledged additional reforms to support growth.

Hans B. Sicat, president and chief executive of the Philippine Stock Exchange, Inc., said good corporate governance was critical to maintain a favorable perception among investors.

"Improved macroeconomic conditions translated into this confidence, and this will go down to individual companies to help them fuel the economy, moving the country into a positive growth cycle," Mr. Sicat said.

The government, said Ms. Almanza, "will always remain to be one step ahead, maintaining a steady hand on policy levers and building on past achievements ... to foster the type of environment viable for investments."

By bworldonline.com

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