MANILA – President Rodrigo Duterte’s plan to overhaul the country’s decrepit infrastructure will help attract foreign investors, an analyst said Friday.
Manufacturing companies based in China that are seeking cheaper labor are keen on Southeast Asia but are held back by the region’s relatively poor transportation networks, said Chidu Natayanan, Asia economist at Standard Chartered.
“The focus on investment and infrastructure is a very big plus,” Natayanan told ANC’s “Market Edge with Cathy Yang.”
Duterte’s government has communicated economic policy continuity “quite well” since taking office on June 30, providing relief for the markets, he said.
The government plans to raise infrastructure spending to an unprecedented 7 percent of gross domestic product by the end of Duterte’s six-year term. Next year, it allotted P900 billion to build new roads, bridges, and transport terminals.
Standard Chartered expects the Philippine economy to grow by at least 6.4 percent for the year. DBS Bank gave a higher forecast of 7 percent on Thursday.