MANILA, 21 May — Notwithstanding reports of violence in some rural areas of the country and the reported attempts by certain quarters to tamper with election results in Mindanao, the May 14 national election was generally orderly and peaceful. The Commission on Elections (Comelec) reported that 85 percent of the country’s 36 million registered voters participated in the political exercise.
As the Comelec starts the official canvass of votes after a two-day delay, unofficial “quick count” results done by the private sector-led National Movement for Free Elections show that eight of the 13 candidates backed by President Gloria Macapagal-Arroyo will likely gain a seat in the Senate.
Although investors still remain cautious pending official election results, local and foreign fund managers virtually gave their stamp of approval on the emerging trend in the senatorial race. “The peso is expected to strengthen after the market shakes out election jitters,” a trader said.
Analysts said it is important for investors to see that the president will have majority of the senators on her side to ensure the success of economic reforms that need legislative backing. Earlier, Japanese investors aired their concern that the opposition may block the administration’s legislative agenda if they get to control the Senate, a highly unlikely scenario.
This early, however, President Arroyo has appealed to opposition candidates expected to make it to the “Magic 13” in the senatorial race to forget partisan politics. Inviting them to join her in her efforts to work for the greater good of the country, the president hoped that incoming members of the 12th Congress would support her administration’s efforts to alleviate poverty and improve the economy.
In a written statement, the president assured foreign investors that the country’s economic fundamentals remain solid, and that the government is committed to provide a level playing field for all players. Reiterating her commitment to reduce the cost of doing business in the country, the president said monetary policies would continue to aim at lowering inflation without affecting economic growth. The country’s inflation rate has been steady at about 7 percent in the last three months.
The president also called on the international business community to give the Philippines a second chance now that political stability has been restored. She said the concerns of foreign investors, such as corruption and bureaucratic red tape, are being seriously and vigorously addressed.
The president also pointed out that her administration’s austerity program has been effective in keeping the budget deficit at bay. Despite collection shortfalls by the government’s revenue-generating agencies, she expressed confidence that the government would be able to attain its 145 billion pesos target deficit for 2001.
Earlier reports said government would be able to bridge its 145 billion pesos budget gap this year by selling big-ticket assets. These include government’s 10 percent holdings in Manila Electric Co., valued at 4 billion pesos. Other assets for sale are the Philippine National Construction Corp. (PNCC) and IBC-13, a government-owned TV and radio station.
The government placed PNCC on the auction block last year. However, the bidding was declared a failure because the highest bid was only 1.3 billion pesos, way below the indicative price of 7 billion pesos.
This year, Privatization and Management Office sources said the government would reduce PNCC’s indicative price to 5 billion pesos. Officials said PNCC’s main attraction is its good cash flow. The company derives steady revenues from its tollway operations.
