Business leaders: 2010 all about restoration of confidence, credibility

BUSINESSES in Cebu are doing well because investors and consumers see 2010 as a restoration of confidence and credibility, industry leaders said.

Mandaue Chamber of Commerce and Industry president Eric Mendoza said the election of the new administration gave high hopes and optimism not only to Filipinos but also to investors.

Mendoza noted that this year’s growth is so robust compared with last year as shown by the surprising growth of the country’s economy in the first three quarters of the year.

The economy grew by 7.3 percent in the first quarter of the year, which is the highest in three decades.

The National Economic and Development Authority (Neda) translated the growth of the first quarter to an increase of employment of almost two million. It added that improvement in the global economy, brighter economic outlook, increased business and consumer confidence, and election-related spending all contributed to the resurgence in economic activities.

The first quarter growth was then followed by a 7.9 percent growth in the second quarter and a 6.5 percent in the third quarter.

“The growth that was sustained in the first three quarters just shows the business and consumer confidence in the country’s economy,” Mendoza said.

He cited the tourism and hospitality, real estate and construction and business
process outsourcing (BPO) industries as among the top three drivers of economic growth in the country this year.

Cebu Chamber of Commerce and Industry president Samuel Chioson agreed that businesses in all sectors are doing well this year, despite some challenges faced by exporters due to the appreciation of peso.

“But in general, (this year) 2010 is much better than last year,” Chioson said.

Chioson said increased remittances, in particular, benefited other industries like tourism, BPO and retail.

But Chioson said that in order for the country to sustain its economic growth, the government should improve its infrastructure, including water and power supply and widening the country’s roads.

Aside from the support infrastructure, Cebu Business Club president Dondi Joseph said an improvement of the country’s governance is also necessary to sustain the growth.

“What we need is new governance. We should let go of the old politics for us to have economic development,” Joseph said.