Will post-election Philippines continue to be conducive for FDI? | The stance of the presidential candidates

01
Will post-election Philippines continue to be conducive for FDI? |
The stance of the presidential candidates
Once considered the “Sick Man of Asia”, the Philippines has seen rapid economic
progress in the past six years under the leadership of President Benigno Aquino.
The country has risen from decades of political instability, a boom-and-bust
economy and inherent corruption, to become the second fastest growing
economy in the world in 2015. With only months left in his six year term, the
popularity and approval of President Aquino remains high; however, the Filipino
Constitution bars a second term in office for the President. As the battle to replace
him heats up between Grace Poe, Mar Roxas, Jejomar Binay and Rodrigo Duterte
ahead of the General Elections on the 9th of May, investors are concerned over
how conducive an environment for Foreign Direct Investments (FDI) his successor
will strive to create.
A four horse race to the hot seat
Supun Walpola supun.walpola@uzabase.com
Will post-election Philippines continue to be conducive
for FDI? | The stance of the presidential candidates
20160406
Mar Roxas - Liberal Party
Roxas is the Flag bearer of the ruling Liberal Party and
President Aquino's endorsed candidate.
Jejomar Binay – United National Alliance
Vice President Binay leads the opposition camp
contesting under his newly formed UNA.
Grace Poe - Independent
Senator Poe was sought to be Roxas’s running mate, but
later chose to contest separately as an independent.
Rodrigo Duterte – PDP Laban Party
Duterte serves as the long standing mayor of the
Davao City, for over 20 years

02
35%
28%
26%
24%
18%
23%
17%
19%
2% 2%
SWS Survey (as at March 22nd) Pulse Asia Survey (as at 20th March)
Poe leads on both SWS and Pulse Asia surveys two months ahead of elections
Poe Duterte Binay Roxas Santiago
The outlook for FDI positive as Poe continues to lead in a tight
battle
Source: SWS/Pulse Asia
Foreign Ownership Restrictions
Supportive for lifting restrictions
on foreign equity ownership
Supportive for lifting restrictions
on foreign land ownership
Opposes lifting restrictions on
foreign ownership
Infrastructure Development
Promises an allocation of over
5% of the GDP from the budget
Supports continuation of the
PPP program
Focus on renewable
energy development
Tax Reforms
Supports personal
income tax cuts
Supports corporate
income tax cuts
Opposes Tax Reforms
Anti – Corruption and Law & Order
Past track record of standing
against corruption
Prior allegations on corruption
and fraud
Prior allegations on Human
Rights violations

03
The latest (late March) SWS and the Pulse Asia surveys indicate Senator Grace Poe
leads the pack. However, she does not still command a convincing majority over
her counterparts.
Poe comes across with a market-friendly, liberal outlook supportive for much-
needed constitutional and tax reforms for the Philippines to remain competitive
in the region. Thus, standing on an election platform that seems to bring the best
prospects for potential investments. Despite a more stringent stance towards tax
and constitutional reforms, Mar Roxas as the Liberal Party flag bearer, is likely to
create a stable environment for investments underpinned by the good governance
and sound economic policies that were once proven successful under the Aquino
administration.
Similarly, notwithstanding his populist attitude and alleged corruption, under Vice
President Jejomar Binay, the investment backdrop will continue to remain largely
positive, owing to his extensive experience in the political landscape, the pledge
to continue with anti-corruption measures and the focus on a far-reaching
infrastructure development. The Davao City Mayor – Rodrigo Duterte continues
to be the wild card; as his ambiguous policies, alleged human rights violations and
the strong law and order platform are likely to create uncertainty among investors.
The overall direction for investors ahead of the May elections should be “cautious
but optimistic”. As the commitment of the presidential hopefuls to continue on
the anti-corruption platform, along with improved infrastructure and reduced
bureaucratic red tape should bode well in brightening the prospects for FDI into
the growing Filipino industries.

04
From good governance to good economics: FDIs triple under
Aquino government
During the Aquino administration (2010-2015), the Filipino economy grew at a
CAGR of 6.2%, on the back of a pro-reform and anti-corruption policy platform,
compared to a CAGR of 4.4% during 1999 to 2009. This positive economic
performance saw Philippines being notched up into investment grade by global
credit rating agencies in 2012 (S&P: BBB, Fitch: Baa2 and Moody’s: BBB-). The
country remains at its best debt position in 18 years, with a Debt to GDP of 44.8%
in 2015 (lowest since 1996 and down from 54.8% in 2009) and stands on a budget
deficit of under 1% of GDP in 2015, following strong fiscal consolidation efforts.
Net FDIs into the Philippines grew at a CAGR of 34.4% over 2010-2015 due to
rekindled investor confidence against this encouraging economic backdrop; a
threefold increase in 2015 to USD 5.72 billion from USD1.3 billion in 2010, when
Aquino assumed office.
Source: The Bangko Sentral ng Pilipinas/World Bank
Despite the sizable inflow of FDIs into the Philippines in recent years, the country
continues to lag behind in the ASEAN region. Even as the FDI inflows reached an
all-time high in 2014 (USD 6.20billion), the Philippines was placed 6th
in the
ASEAN region and last among the ASEAN-6 in terms of FDI inflows. Out of the
total FDIs into the ASEAN in 2014, the Philippine’s share amounted to 3.2%, which
is one-tenth of the investments into Singapore, one-third of Indonesia and half
of Thailand.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 GDPGrowth(%)
NetFDI(USDBillion)
Net FDIs into the Philippines have tripled under the Aquino administation
Net FDI GDP Growth
Arroyo (2000-2010) Aquino (2010-2016)Estrada
(1998 –
2000)

05
Source: World Bank
The poor competitiveness compared to other countries in the ASEAN can be
attributed to a) constitutional restrictions on foreign asset ownership, b) the
inherent corruption and red tape and, c) the lack of adequate infrastructure. Thus
the challenge, now that the Aquino administration has transformed Philippines
into an economic bright spot worthy of attention, is to maintain momentum and
overcome the shortcomings the present government has left unanswered.
All candidates vow to follow the “Straight Path” – the
Aquino philosophy of good governance
The subject of good governance and anti-corruption was at the forefront of
Aquino’s campaign in 2010. Delivering on the promises made, President Aquino’s
efforts on anti-corruption and policy reforms has led to a more transparent
business environment within the country. According to the Ease of Doing
Business Index, the Philippines was ranked 103rd
in 2016, notching up over 30
positions compared to 134th
occupied in 2010. Overall, the good governance
practices has been a key driver in luring investments to the Philippines by
reinforcing the investor confidence through a transparent policy platform, and
will continue to remain a priority for the new administration.
6.20
9.20 10.80 12.57
22.60
67.52
0
10
20
30
40
50
60
70
80
Philippines Vietnam Malaysia Thailand Indonesia Singapore
FDIInflows(USDBillion)
Philippines attracts the lowest FDIs in 2014 among the ASEAN-6

06
Source: Transparency International
Mar Roxas of the Liberal party vows to carry forth the “Straight Path” – the
Aquino philosophy of anti-corruption and good governance. However, the rest
of the pack have also endorsed the “Straight Path” and promise continuity of
Aquino’s efforts to lead the country corruption-free. Senator Grace Poe comes
across with a clean image, brought about by her participation in the Senate's
investigations into corruption cases of government officials. Poe also authored
several Senate Bills aiming to strengthen the capacity of investigating and
prosecuting government officials accused of crimes and is likely to follow through
on her anti-corruption agenda from the top seat.
Duterte, during his tenure as the Mayor, made Davao the 9th
safest city in the
World. Thus, comes with a proven track record that suggests Philippines would
continue to be a more disciplined nation under him. However, Duterte faces
allegations against human rights violations during his time as the Mayor of Davao.
He has been dubbed "The Punisher" by Time magazine, and has been criticised
by human rights groups led by Amnesty International for tolerating extrajudicial
killings of alleged criminals by the vigilante Davao death squads. In 2015 Duterte
publically admitted his connections towards the murders, emphasizing that his
efforts were for greater good, and warned that he may kill up to even 100,000
criminals if required to ensure the peace and order of the country.
The gloomiest of the track records lies withof the current Vice President Binay,
who has been in the center of various corruption scandals over the past few years.
However, Binay has rejected any accusations of corruption and has supported
key initiatives such as the bringing up of the freedom of information bill, to
improve the transparency of the administration. Thus, the general outlook
among all presidential bids remain positive towards the practices against
65
77
92
102
117 121
131
141 139
134
129
105
94
85
95
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Philippines improves its ranking in the Courruption Perception Index under the aquino
government from 139th to 95th

07
corruption and establishing law and order, which under the past regime was a
proven medicine to boost investor confidence.
Source: Facebook/GMA
Candidates positive on constitutional reforms to lift foreign
ownership restrictions
Perhaps the biggest deterrent in attraction of FDI’s in to the Philippines has been
the so called 60-40 rule under the Filipino constitution, which limits the foreign
equity ownership of local firms. While the general perception is of a 40% cap on
ownership for foreigners, in reality the ownership restrictions vary across the
industries. In general, 100% foreign ownership on enterprises is accepted unless
the industry falls under the Foreign Investment negative List. However, despite
the liberalisation of the foreign investment laws under the Aquino administration,
several key growth industries such as; media, energy, telecommunications and
land ownership still remain on the restricted boundaries for foreign investments.
All candidates, except Roxas have been largely positive on the necessary
constitutional reforms necessary to ease the foreign ownership restrictions.
1%
2%
7%
16%
21%
21%
25%
34%
64%
0% 10% 20% 30% 40% 50% 60% 70%
Trafficking
Environment
Infrastructure
Health
Social Welfare
Defense & Foreign Policy
Education
Economy
Transparency
Transparency is the most talked topic on Facebook regarding the election

08
Source: World Economic Forum
Binay has vowed to amend the 40% baseline on the foreign investments, as a key
priority in his economic plan. Binay expressed that under his administration the
goal will be to liberalise the entry of foreign investments in prime economic
sectors such as infrastructure, energy and telecommunications. However,
indicated he is still uncertain on the right limits for foreign control.
Poe in supporting the constitutional reforms stated that she will open up the
foreign ownership for key industries such as media, utilities, academic
institutions and the medical profession. However, she continues to remain
stringent over restrictions on foreign land ownership in the Philippines. Perhaps
the most open on his intentions has been Duterte, whom has agreed on a 30%-
70% ownership platform in favor of foreign investors and remains positive over a
40-year lease of Filipino land to the foreigners, renewable for another 40-years.
Roxas, however remains wary of the constitutional amendments, expressing that
the constitutional restrictions is not what that confines foreign investments into
the country, instead ranks red tape, corruption and tax policies as more bloating
factors that keeps the investors away from the Philippines. Additionally he had
expressed that a constitutional reform will put the potential investments in a
“substantial pause” as the investors will follow a “wait and see” approach
throughout the reform agenda, which could practically take up to three years to
complete. Thus, suggesting constitutional reforms will not be a strategic priority
under his administration.
3
18
37
63
69
87
0
10
20
30
40
50
60
70
80
90
100
Singapore Malaysia Thailand Vietnam Philippines Indonesia
Rank(1=Best)
Philippines ranks among the lowest in the ASEAN-6 in terms of Business Impact of
Rules on FDI in 2015

09
Overall, while the general sentiment on lifting the baseline on foreign ownership
seems positive among the candidates, as Roxas himself have indicated, such
amendments could only be probable over a substantial timeline. Thus, while
lifting ownership restrictions could be the way forward for Philippines in drawing
major investments into the country, a stable economic policy free from
corruption and red tape will be the priority for the Philippines in maintaining the
positive momentum for FDI in a post-election environment.
Tax reforms unlikely in the near term given the priority for
inclusive growth
Source: Rappler
The Philippines currently has the highest corporate income tax rate of 30%,
among the ASEAN-6. This was largely due to the fiscal consolidation efforts under
the Aquino government, which saw the income taxes being held constant.
Whereas other ASEAN peers such as Thailand (20% from 35% in 2010) and
Vietnam (22% from 35% in 2010) in the recent years have invested in tax cuts in
order to improve the competitiveness of its business environment. Incidentally
Singapore, which has the highest foreign direct investments in ASEAN holds the
most attractive corporate tax package. Candidates are split on the subject of tax
reforms, with Poe and Binay supporting the corporate tax cuts, while Roxas and
Duterte suggest otherwise.
17%
20%
22%
25% 25%
30%
0%
5%
10%
15%
20%
25%
30%
35%
Singapore Thailand Vietnam Malaysia Indonesia Philippines
Philippines has the highest corporate tax rate among the ASEAN-6

10
“The country’s tax system is uninviting as the region moves toward economic
integration” Binay had expressed, indicating that reduced corporate income tax
rates will entice foreign investors to do business in the Philippines. Binay has
emphasized that the government should gradually, or within 5 years, reduce the
current corporate income tax rate from 30% to a more realistic and reasonable
rate that is consistent with the ASEAN peers. “We want to really be competitive
when ASEAN economic integration happens. We have to be able to compete
globally and make it enticing for investors to set up businesses here. Why would
they want to do that if they have to pay a higher corporate income tax but with
the less-than-ideal infrastructure that we can offer them?” said Grace Poe,
running on a pro-tax reform agenda for the election.
“It’s a zero sum game” said Roxas expressing his view on the tax reforms, hinting
that in vowing to continue the efforts of Aquino on social security and poverty
alleviation, a corporate tax cut might not be in his governments’ priorities.
Standing on the same ground with Roxas on the tax reforms, Duterte said, “I need
money for my programs to create jobs, solve criminality, hunger and restore
peace and order. I need money to run this country”, indicating that corporate tax
cuts will not be the strategy in boosting investments by either of the candidates.
Even in the case of Poe and Binay, the timelines for tax reforms remains grey, as
both have vowed on continuity of the social security platforms under the present
administration, and the income for funding such initiatives at least in the medium
term will be from the corporate tax revenues, as both candidates have already
pushed for a reduction in personal income taxes for lower tax brackets.

11
Government spending on infrastructure to rise with the
outlook for regional development
A major criticism of the Aquino administration was its apparent underspending
on infrastructure projects, where the government was said to have underspent
PHP 623 billion during 2010-2014, on the back of a stringent fiscal policy. In fact
over the past decade, the budget allocation for infrastructure development was
on average 2%-3% of the GDP, which saw Philippines lagging behind on key
infrastructural platforms such as airports, power, roads, seaports, and
telecommunications. As per the WEF Global Competitive Index of 2015, the
Philippines was ranked lowest among the ASEAN-6 in terms of overall
infrastructure quality. However, with a fiscal deficit of less than 1% of the GDP,
all the candidates remain positive over increased spending on infrastructure
development from the strong fiscal space created under the Aquino
administration.
“One mega project per region and one major project per province”, Binay
highlighted on his plan for infrastructure development in an attempt to take the
economic growth beyond the metro cities. Binay also expressed his intentions on
spending 5% of the GDP on infrastructure development of the country while Poe
calls for a government infrastructure budget of 7% of GDP.
Roxas vows to continue and expand the Bottom up Budgeting (BuB) program
under the Aquino administration, accordingly promising a budget of PHP 100
million per region under his administration. Whereas Duterte will put up
economic zones in each region to create more jobs in the rural regions, such that
under his presidency, every region would have an economic zone. In general,
regional infrastructure development, led by the need for inclusive economic
growth has been the baseline agenda of the presidential bids, which could in turn
create a pro-investment backdrop outside the congested metro cities.
The Aquino government initiated a number of public-private partnership (PPP)
projects towards the end of its term, in an attempt to entice the private sector
investment in large scale infrastructure projects. The number of PPP projects
underway as of 2015 stands at 12, however out of which only two projects have
been completed as of yet. Thus concerns have been raised on the fate of the PPP
program post transition of power, as historically, pet infrastructure projects of
the incumbent administration are either delayed or scrapped under a new
political regime.

12
Binay described the PPP program of Aquino “an epi-center of failure” owing to
the delays in implementation and progress, however vowed on the continuity of
the PPP platform with “better” implementation, minimizing its current
inefficiencies. The rest of the candidates have also been largely positive on the
continuity of the PPP plans, with Roxas as the stand bearer of Aquino regime and
Poe, who looks into PPPs to develop the transport system of the country. Poe
claimed that she would complete seven airports through PPP in the first half of
her term and promises on the fast-track completion of the proposed MRT7, LRT6,
Skyway 3, LRT2 East Extension, Northrail and Southrail projects.
The promise of the candidates on the continuity and the fast track
implementation of the PPP program, along with grander allocation from the
budget on infrastructure development should bode well in opening up
opportunities for potential investments in big-ticket state infrastructure projects
under the new administration, with over 20 PPP projects already in the pipeline.
Manufacturing, an investment priority among all candidates
in a bid to ease unemployment
The manufacturing sector topped the FDI into the Philippines in 2015, with net
inflows of USD 772.7 million owing to a value share of 13.5% of the total net FDIs.
The manufacturing sector constituted over 20% of the Philippines GDP in 2015,
and outpaced the real GDP growth of 5.8% by growing at 8.0% YoY from 2014.
The fortunes of the manufacturing sector is set to improve with the ASEAN best
positioned to lure FDI from a slowing down China, with many investors seeking
viable alternatives. The Philippines has been an attractive destination in
particular for Japanese manufacturers, who have already doubled it’s the share
of FDI inflows into the Philippines in 2015 from the previous year.
“Manufacturing is important because it gives quality long term jobs”, says Roxas
emphasizing on his promise to create six million jobs. Roxas intends on creating
one million jobs each year within his six year term through attracting investments
in to the manufacturing sector. Unemployment has been a focal topic among the
candidates as Philippines continues to experience an unemployment rate of 7%-
8% for the past decade, with further roughly 18% underemployed – despite the
rapid economic growth. The unemployment in the Philippines have been largely
driven by a weakening agricultural sector which has seen over 654,000 jobs being
shed let alone in 2014.
Following Roxas, both Binay and Poe also perceives investments into the
manufacturing sector as a viable alternative and an immediate remedy for the
country’s growing unemployment among the semi-skilled labour.

13
In an attempt to boost the investments into the manufacturing sector, the
candidates are focused on improving the energy platform in the country. The
Philippines is currently among the highest in terms of energy costs in Asia, largely
due to shortages in the power generation and supply. The Economic Intelligence
Unit forecasts the demand for power in the Philippines will outpace the supply
by 2020. As per Department of Energy estimates, the Philippines will need an
additional 11,400 megawatts (MW) of generating capacity to meet the energy
demand from 2016 to 2030. Additionally the Philippines continues to be the only
country in the ASEAN which does not receive government subsidies for energy
development, thus resulting in higher prices compared to the region.
The solutions of the candidates for the energy crisis lies largely in the renewable
energy sector. Roxas is to rely natural gas, citing that it is cheaper compared to
other clean or renewable sources of energy and will considerably bring down the
initial cost of investment compared to other renewable sources, which would
eventually be passed on to the consumers defeating the purpose of coming up
with stable and cheaper electricity. Poe, in her 20-point agenda for governance
has emphasized that renewable energy development will be a key priority under
her administration, which will also mandate power distributors to source a
portion of their energy from renewable energy suppliers. Poe also remains
positive on pricing reforms, in a measure to cut down on the higher energy costs
in the manufacturing sector. Meanwhile, Binay calls for a five pillar platform to
solve the energy crisis in the Philippines, targeting self-sufficiency in energy
through private investments in natural gas and renewable energy.
On a different note, Duterte plans on revitalization of the country’s steel industry
by means of sustaining economic growth. The apparent steel consumption in the
Philippines saw a rapid growth in recent years, increasing from 4.00 to 7.33
million metric tons in 2014, growing at a CAGR of 16.3% driven by the rapid
infrastructure development and the construction activities within the country.
However 80% of the steel demand in the Philippines continues to depend on
imports despite sitting on over 300 million metric tons of iron ore reserves.
Duterte claims the steel industry to become the backbone of industrialisation in
the Philippines, through catering the needs of a wider range of industries that
would depend on steel inputs – thereby opening up potential for steel and steel
related industries in the Philippines.

14
Source: Steel Statistical Yearbook
The outlook for BPO sector remains positive as presidential
hopefuls pledge state support
The BPO sector has been the most attractive for foreign investments, which
constitutes over 20% of the total FDI projects currently in operation in the
Philippines. The BPO sector has been a major driver of the Filipino economy over
the past decade, becoming the highest contributor to the GDP of the Philippines
at 35% in 2015 from a mere 0.75% in 2000.
Source: The Bangko Sentral ng Pilipinas
3.04 3.12
3.74
3.04 3.08 3.16
3.40 3.56 3.43
4.00
5.11
6.01
6.71
7.33
0
1
2
3
4
5
6
7
8
2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
inTonnesMillions
Apparent steel consumption in the Philippines has grown at a CAGR of 16.3% from 2010
0.33 0.38
0.82
1.83
2.38
4.29
5.36
6.96
7.82
0
1
2
3
4
5
6
7
8
9
2005 2006 2007 2008 2009 2010 2011 2012 2013
FDILevel(inUSDBillions)
The FDI in the IT/BPO sector has grown at a CAGR of 48.6% between 2005-13

15
Hailed as the “Father of the BPO industry in the Philippines” Mar Roxas vows the
continuity of the support to the BPO sector of the country. Roxas as the Secretary
of Trade & Industry from 2000-2003, initially drafted the campaign “Make IT
Philippines”, which saw the platform to create the IT/BPO industry to grow,
through infrastructure development, law making and global promotion of the
industry. Thus, the BPO sector could expect to ascend under a Roxas
administration. In fact the development and the protection of the BPO sector
seems a common platform among all the candidates, as both Binay and Duterte
have also prioritised the development of the BPO sector in their mandates. The
Davao city under Duterte is already a leading BPO location in the world, ranking
66th
in the world after Manilla (2nd
) and Cebu City (7th
). Binay considers the BPO
sector to be a priority in terms of employment generation.
Concerns were raised however, on the stance of Senator Poe on the BPO sector
of the country; as the rumors on social media hinted the hostility of Poe towards
the BPO sector. However, the Poe camp have fully denied such allegations, and
have openly expressed support to the development of the industry. In fact, Poe
has expressed her willingness to establish Dumaguete City as a hub for
information and communications technology (ICT)-based industries to create
more opportunities for graduates in the renowned university town. She
emphasized that the local government can work closely with the ICT Association
of Dumaguete and Negros Oriental in developing the ICT workforce of the city
and providing free BPO training programs alongside university placement
systems to facilitate an internship-to-employment system for the potential
workforce. Poe has also emphasized on the need for faster and cheaper internet
in the Philippines under her 20-point agenda, which would be a key
infrastructural requirement for the expansion of the IT/BPO sector in the
Philippines. According to the Internet metrics provider Ookla, the Philippines
ranked 21st out of 22 countries in Asia with the slowest Internet download speed,
evident of the poor IT infrastructure in the Philippines.
The prospects for the BPO sector in the Philippines continue to remain bullish
with the Philippines Competitive Report for 2015 by Deloitte projecting the
industry to grow a CAGR of 17% to reach a target of USD 48 billion in revenue by
2020, accounting for 20% of the global industry value. Deloitte further expects
the BPO sector to diversify from the largely call-center dominated operations to
other services such as healthcare information management, gaming, and
animation.

16
Candidates to follow a pro-mining agenda amidst the
pressure from green groups
Philippines is considered to be the 5th most mineral-rich country in the world for
gold, nickel, copper and chromite worth reserves over USD 840 billion. However,
since 2011, government has not actively pursued investments in mining and
mineral development, opting to focus on reviewing the current fiscal regime for
mining. In 2012, mining was excluded from the government’s Investment
Priorities Plan (IPP) and all incentives to the industry under the Mining Act and
the National Internal Revenue Code have been removed. The policy change was
premised on the notion that government’s share in revenues from the mining
industry were significantly lower compared to the cost of the environmental
depletion brought about by mining activities. President Aquino issued an
Executive Order in 2012, forbidding the signing of new mineral agreements until
a new mining revenue sharing scheme was legislated. The Mining Industry
Coordinating Council introduced a higher tax on the mineral industry in 2015, of
10% of the gross sales or a 55% share in net revenues, however has not been
legislated yet.
Binay openly criticised the present government for putting the mining industry in
a “limbo”, and expressed his support towards responsible miners, while raising
the concerns that the proposed higher taxes will further deteriorate the global
competitiveness of the Filipino mining industry. However environment groups
continue to urge the public not to vote for “pro-mining” candidates in the
elections, tagging Roxas and Binay in their campaign. “If these candidates will be
elected, we expect an increased entry and operation of foreign and big mining
companies who will further grab our lands, destroy our ecosystems, and plunder
our resources,” said Clemente Bautista, National Coordinator of the Kalikasan
People’s Network for the Environment, one of the convening organizations in the
campaign.
On a different note, Duterte recently accused Roxas of being supported by
billionaire businessman Eric Gutierrez, CEO of SR Metals, Inc., a controversial
mining firm which was subjected to a Senate investigation for the allegedly illegal
shipment of nickel ores. Additionally Roxas’s Statement of Assets, Liabilities and
Net worth (SALN) reveals that Roxas has business interests and financial
connections in seven different mining corporations, hence being rightly accused
by the environmental groups for his pro-mining agenda.

17
However despite not being accused of a pro-mining agenda, both Poe and
Duterte have also expressed that they will support responsible mining under their
administrations. Duterte stated that he will be supportive for mining but under
the stringiest of environmental standards, and even showed willingness on
leasing out land and islands for the developers for 30 to 50 years and a revenue
sharing scheme up to 30%-70% in favor of the investor. Overall, all presidential
bids have shown their keen interest in exploiting the untapped potential of the
mining industry as one of the country’s next boom sectors.

18
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Will post-election Philippines continue to be conducive for FDI? | The stance of the presidential candidates