• Business community expects reforms after mid-term elections

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    With the mid-term elections over, the business community hopes to see progress on some specific reforms needed on several sectors or industries.

    Ismael Guerrero Cruz, president of IGC Securities Inc., said several reformations on some business sectors are expected to be put in place after the winning senators have been proclaimed.

    “The results showed no surprises but there would be some major factorial reforms that will be put in place. They are just waiting for the senatorial elections to get behind us,” Cruz said.

    Cruz said the business community is waiting for the Senate action on a measure imposing new taxes on mining.

    He added that the corporate world is waiting for the government to introduce structural reforms with the goal of opening up the economy to foreign investors.

    Jonathan Ravelas, BDO Unibank Inc. chief market strategist, said preliminary results of the senatorial race favor administration candidates, a validation of the President’s mandate.

    “This should see the continuation of economic reforms needed to sustain the present gains,” he said.

    With the results more or less in tangent with expectations, the country can now move forward with the government in effect earning a fresh mandate, Jun Calaycay, brokerage Accord Capital Equities Corp. analyst, reported.

    “Political risks are tame and are not seen to cause or create much stir in the next three years,” Calaycay said.

    Astro Del Castillo, First Grade Finance Managing Director, however said it will take time before the performance of winning senators would have an impact. “We’ll see if these elected senators can deliver, so far, nothing can be seen yet. It really depends on their performance and the programs or changes they would like to address,” he said.

    BDO Capital and Investments Corp. president Ed Francisco said the business society has factored in smooth elections so there should be no upside in all sectors.

    For his part, First Metro Investment Corporation president Roberto Juanchito Dispo said with the elections over and the recent credit upgrade, the economy is poised for a strong and sustained upward movement.

    “Our mid-term election was one of the downside risks mentioned by several foreign economists which could affect the country’s stability but the peaceful outcome is clearly a boost to our current economic boom,” Dispo said.

    “We see a very positive political environment complementing our strong economic fundamentals pointing to higher economic growth for the country,” he added.

    Madelaine B. Miraflor

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