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MANILA, Philippines – The 2013 mid-term election has just passed but analysts from Singapore-based global investment banking and securities firm Goldman Sachs are already thinking of the 2016 polls and beyond.
In a roundtable meeting on Thursday, May 23, Goldman Sachs chief growth markets strategist Christopher Eoyang shared concerns over continuity of whatever gains the Aquino government has achieved in the past 3 years and the last half of the administration’s 6-year term.
Since President Aquino cannot run for another term, Eoyang said the impending change in leadership in the 2016 elections will determine whether the reforms and policies of the current government will be pursued to sustain a vibrant investment environment.
“Investors are really thinking about the continuity of the reforms and the agenda [once leadership in the government is changed],” Eoyang told reporters.
He cited as an example the government’s intent on pushing the mining reform bill as a priority measure in the next Congress, as well as the so-called fiscal incentives bill, which involves streamlining the tax perks given to businesses, among others.
“I would be really worried if, out of nowhere, people started voting somebody else in power that has a different agenda despite a stellar performance of the past administration. That would be really worrisome,” Eoyang said.
Next 3 years
Goldman Sachs executive director and economist Mark Tan agreed that “regime changes have a huge effect” on the economy, but also stressed that political gains of the ruling political party led by President Aquino help boost the investors’ confidence.
“The effects of the 2013 election results really depend on how certain reforms and measures will be pushed and passed in the next years to prepare for 2016,” he said.
“The thing that matters now is how much the current administration can get done. That will resonate on the perception of the voters come election day in 2016; whether voters will want to have a new government similar to the current administration or not,” Eoyang said. – Rappler.com
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