THE private sector in Negros Island Region (NIR) is both optimistic and apprehensive on the business industry prospects this year.
Frank Carbon, regional governor of the Philippine Chamber of Commerce and Industry (PCCI) in Western Visayas and NIR, on Monday said 2016 was a “good year,” except for the last quarter’s events that mainly triggered some of the local business community’s fears.
Carbon, also the chief executive officer of the Metro Bacolod Chamber of Commerce and Industry (MBCCI), said they are a little apprehensive especially in the first half of 2017 due to the recent and impending increases in the prices of fuel, interest rates, and taxes.
The increases implemented by the oil companies were almost 50 percent of the previous prices of fuels, particularly diesel, he added.
He also cited the continuing depreciation of peso over dollar, which will make importation more expensive for local businessmen.
“All of these combined will mean high cost of doing business for the sector. It will also trigger increases in prices of basic commodities,” Carbon added.
When prices of basic commodities move up, operational costs of the businesses including salaries of employees also increase, he also said.
Carbon lamented that the pronouncements of incoming US President Donald Trump, including the “hire and buy America” cause worry to the sector.
“We hope that it will not negatively affect the overseas Filipino workers and the business process outsourcing industry the country,” he said.
The local business sector is more apprehensive of these factors rather than the effects of other Duterte policies like the campaign against illegal drugs and the extra-judicial killings.
However, business is still optimistic of a bullish economy in the remaining half of the year “if the present administration will be able to deliver its promises of billions of infrastructures and less corruption in government.”
Carbon said that more infrastructure projects plus the construction boom will likely offset the “burdens” of doing business during the first half.
“With more infrastructure projects, there will be more investments which will result to stronger money circulation and more income and employment," he added.
Micro, small and medium enterprises (MSMEs) in Negros Occidental are also upbeat that the government will become more aggressive in providing strong support to the sector considered the backbone of the economy.
Mary Ann Colmenares, chairman of the Provincial MSME Development Council, said they have started feeling the gains brought by initial initiatives of the Duterte administration particularly those anchored on boosting small entrepreneurs.
Colmenares, however, said they are still looking forward to a more aggressive rollout of projects and programs that will further boost the MSMEs’ business portfolio.
“We always consider as opportunity for development every change being taken by the current administration,” she said, adding that their confidence level in the government remains positive this year. (With reports from TDE)