Where To Invest Your Money Under The Duterte Administration3 min read
According to personal finance and investmentÂ experts Randell Tiongson and Marvin Germo, there are even more opportunities to make your money grow under the incoming administration.
As President-elect Rodrigo Duterteâ€™s cabinet slowly takes shape, we are steadily seeing signs of optimism across various sectors.
Amid the incoming administrationâ€™s crime-busting agenda and reformative plans, eCompareMo caught up with two of the countryâ€™s financial experts during a recent session of Pandesal Forum. The talk, hosted by Wilson Lee Flores of Kamuning Bakery CafÃ©, aimed to tackle where investments and the Philippine economy are headed with President Duterte at the helm.
The competitive edge
For Marvin Germo, financial planner and stock market investment columnist, we have yet to see the Duterte administrationâ€™s take on mining. He advises: â€œIf itâ€™s the same as Aquino government, for me, donâ€™t touch mining stocks.â€
Personal finance coach Randell Tiongson, on the other hand, looks forward to setting up more areas in the BPO Industry. â€œThe government should create an environment that is conducive to BPO growth,â€ he says. â€œItâ€™s very important that we maintain being competitive.â€
He adds that the Duterte administration should also strengthen the educational system of the country. â€œWe need to maintain that level of competitiveness and quality of our employees,â€ he says. â€œThatâ€™s why we should focus on education. Communication is our strongest suit, but if itâ€™s not taught in schools, we will lose our good employees.â€
Generally speaking, Germo is excited about the growing economy in the country. â€œFilipinos are very consumption-driven by nature,â€ he says. With the country becoming safer, people will go out and travel more, and this will affect local tourism.
He also highlightedÂ two points on how Filipinos can make the most of the growing economy:
1. Whoever is president, if we donâ€™t know how to save, nothing will happen. Now that the economy is rising, the goal now is for Filipinos to become entrepreneurial. Itâ€™s a good time to invest. It is easy to borrow money to start a business.
2. Itâ€™s not anymore a question of: Will the economy continue to rise? But more of, while it continues to grow, are you growing with it too?
He also says that while the recent surge in the stock market can be attributed to the peaceful elections, shares will continue to do better because investors are also optimistic with the new administration.
â€œAs of this point we have a growing economy,â€ Germo says. â€œIf youâ€™re looking for growth, go for stocks. If youâ€™re looking for the possibility of fixed revenues, go with bonds. As long as the economy will do well, anything thatâ€™s fixed from bonds, time savings accounts, will not really go well, unless youâ€™re a retiree. If you really want to grow your money, stock markets and equity funds are one of the best ways to put it in.â€
More business opportunities
Tiongson, on the other hand, sees the correlation between the growing BPO industry and real estate. â€œWhere thereâ€™s BPO, the property cost goes up. If I were to give an advice to the Duterte administration, it is to push on other methods of BPO. Not just contact centers, which formÂ the bulk of BPOS, but also IT, animations, [services] where there’s a higher value.â€
He adds: â€œBut the downside of BPO is that itâ€™s portable. Itâ€™s easy to fold, madaling ilipat. We need to maintain that level of competitiveness and quality of our employees.â€
â€œBusiness is always dependent on where opportunities are, where thereâ€™s demand,â€ Tiongson notes. â€œSME is small enough that it can enter before the big players come in. You have to be the first to set up a business where thereâ€™s a good opportunity. It doesnâ€™t always have to have a revenue like those ofÂ the big chains. Find certain niches na hindi na-se-service-an. Most of big businesses today are all about solving a problem.â€
When it comes to applying for a loan for your business, Tiongson says that banks are still conservative towards startups, â€œbut when you have a business that is expanding, maybe there is more access for you.â€
â€œHopefully a lot of people think that other sectors developing in the last six years might be better,â€ Flores adds. â€œMining is a possibility, constitutional reform on foreign investments is very exciting, and I think a lot of foreigners think that, with better peace and order, baka mag-doble o triple ang tourism. Of course, this is even better for local investors.â€