Fast-growth cycle

A PROGRAM WHERE POLITICS HAS A LOT OF INFLUENCE – Foreign and local investors are keeping close tabs on the Philippine stock market and government economists and financial mangers quoted a report from prestigious investment rating firm Fitch stating that the country’s investment level was upgraded to BBB-plus from BB-minus – a glaring indication that prospective investors could now confidently engage in a business venture in the country. The rating probably was the result of a steady growth in the stock market posting a remarkable record hitting almost the 7,000 mark, and that is currently the official figure.
One of the most encouraging things that came about as a result of the recent fast-growth cycle in the stock market was that it regained investors’ confidence to establish business in the country. From a point of view of an investor looking for safe harbor, it certainly bolstered the notion that with an increasing growth in the stock market the peso will continue to remain stable against the US dollar and other foreign currencies. Given the stock market’s boosting performance, there is no good justification for the peso’s decline – investors’ would expect it to hold up better.
Mindful that all the uncertainties raise the possibility of an unexpected economic slowdown, independent economists and financial experts have something to say about the accelerating growth in the stock market. They noted that the long-term economic outlook is superb therefore gave their unsolicited advice urging government economic planners and financial strategists to closely monitor the promising business development. It will be appropriate if investors should pour in their capital in other line of businesses instead of just investing mainly on stock trading. Many investors actually are interested in fast-growing sectors like technology, electronics and manufacturing, which eventually generate employment.
But there are still many things to do. While there has been significant progress in the stock market, some reputable economists observed the much-vaunted economic gains have not trickled down to the people despite the intensifying growth in the stock market. There are huge investments in the stock market yet we absolutely lack investments in commerce and trade. And that is precisely the reason government is not generating enough job opportunities for our kind of unemployment problem especially in the countryside to minimize the rural-to-urban migration. Government think-tanks therefore should consider the application of long-term strategy and manufacturing and production activities must be uppermost in their minds. Attracting more investors, not just stock traders should be their priority.
The scheme is enabling the country to get on the business of running the economy unhampered, spending time to accelerate the stock market growth and at the same time stimulate its job generation program where politics has a lot of influence. Right now two of the most powerful factors are working in government’s favor. The stock market growth has peaked and is spinning up. Likewise we have seen a migration of new generation of up-and-coming entrepreneurs into the country.
So what can the government do to draw more investors? Well, a good example is stock trading. There are signs that indicate the market will go on protracted expansion stage. For business, a considerable proportion of income comes from manufacturing activities and infrastructure spending. If we look at the composition intently, authorities have shown themselves to be very responsive, far-sighted in responding to mounting challenges. Sad to lament, though, detractors, as their wont, refused to open their eyes, lend their ears and admit the present economic realities.