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PRESIDENT Arroyo said on Thursday that now is the best time
to make available “good stock offerings” in view of the
expected increased interest in investments in the
Philippines generated by its high investment marks from
big portfolio investors like the California Public
Employees Retirement System (CalPERS).
The President made the statement in an interview with
reporters a day after Malacañang released a memorandum
to the President from Foreign Affairs Secretary Alberto
Romulo, revealing that the
Philippines obtained the highest rate of improvement
among 27 emerging markets in the CalPERS Permissible
Markets.
From 14th place in 2006, CalPERS now ranks the
Philippines 10th, ahead of Asean emerging markets
Thailand,
Indonesia, and Malaysia; and China, India and Russia.
Responding to the report, the President said: “What is
important is that we have to have many good stock
offerings so that they will have a lot to choose
from,...so that CalPERS will go to the
Philippines.”
“They like the country but of course they don’t buy the
country, they buy shares in the country.”
CalPERS is the largest pension fund in the
United
States and is recognized as a global leader in the
investment industry, with an investment portfolio of
$200 billion.
CalPERS consulting firm Wilshire Associates considered
several factors in determining the viability of a
country as a CalPERS investment destination, including
overall political stability, labor practices, investor
protection and capital market openness.
At the 7th Global Sourcing Conference and Exhibition at the
Edsa Shangri-La Hotel, the President said that through
her fiscal reforms, she has struck a “balance” between
efforts to reduce the budget deficit which affects
credit ratings and the capital market, and
infrastructure spending, which drives investor
confidence.
“The long-term effect of our tough decisions to raise
revenues and move towards a balanced budget is evident
in the stream of positive development in the economy
among them, your presence here,” she told the foreign
delegates.
The Philippine stock market neared a 10-year high on
Wednesday, on speculations that the country would
receive a higher debt rating outlook.
In her interview with reporters, the President also took note
of the peso performance when told that the local
currency is at its strongest in six years. To this, she
said with a laugh: “It’s unstoppable. It’s getting
stronger and stronger.”
M. Gonzalez |
