Mobius: Duterte’s ‘pivot’ good for PH economy

ABS-CBN News, Nov 08 2016

MANILA – Templeton Emerging Markets Fund Group Executive Chairman Mark Mobius on Monday said the Philippines would need to beef up on its infrastructure and China might be of big help.

Speaking on ANC Business Nightly with Cathy Yang, Mobius said there is a need for more infrastructure, such as subways, in Metro Manila and other parts of the country.

“Infrastructure, infrastructure, infrastructure. There is a need for more infrastructure in Manila and other parts of the Philippines. Manila should have a subway system urgently. That’s true with many other cities.”

Mobius suggested that the Philippines could tap its new-found Beijing connection as the Chinese are known to be “quite good” in infrastructure investments.

“The connection with China might be able to move us along. The Chinese are quite good in creating infrastructure investments and it might be a good idea for the Philippines to tie up with them to do that,” the fund manager said.

Meanwhile, Mobius said he is not alarmed that President Rodrigo Duterte’s “pivot”, which he thinks is “taken out of context,” would affect BPO companies in the country. “I think it’s very good so far,” Mobius said of the economy under Duterte.

Philippine services will make BPO firms stay, according to Mobius, adding that India’s strength is in data services. On balance, India won’t quash the Philippine BPO industry, he added.

“I think the value that the Philippine BPO services have will not be dissipated by competitors such as India. India is very good in data processing, that sort of thing.

When it comes to customer service, the Philippine services are outstanding. So, I doubt that you’re gonna see much movement away from that. People would still want these Philippine services,” Mobius said.

Mobius is a noted global fund manager with investments in private equities in emerging markets. His investments in the Philippines are hinged on the growth of the BPO sector.

In April, Mobius was in the country to launch a private equity venture on a new apartment building for BPO workers.