The full implementation of the government’s industrial policy measures will help strengthen the Philippine economy amid the expected reopening of the Strait of Hormuz, a business group executive said Tuesday.
This comes as the interim agreement between the United States and Iran, scheduled to be signed later this week, calls for the immediate reopening of the Strait of Hormuz, one of the world’s most important oil chokepoints.
Federation of Philippine Industries (FPI) chairperson Elizabeth Lee, in a statement, described the interim peace pact as “cautiously good news” because it “gives the Philippines breathing room.”
She noted that when the Middle East crisis began at the end of February this year, domestic fuel prices rose above PHP100 per liter and the Philippine peso weakened to the 61-level against the U.S. dollar.
In response, Malacañang declared a State of National Energy Emergency to accelerate the implementation of programs aimed at cushioning the crisis’ impact on the domestic economy.
“With global oil prices now falling after the peace deal, the pressure that cascaded through logistics, cold chain, and transport will start to unwind,” Lee said.
While the impact will not be immediate, Lee pointed out that “the direction is clear and constructive.”
“Diesel linked costs will soften gradually, giving manufacturers room to rebuild margins, stabilize production schedules, and restore predictability,” she said.
Lee underscored the need for the full implementation of key economic measures, including the Tatak Pinoy Act, which empowers domestic firms to produce diverse and globally competitive goods and services, and Republic Act (RA) 12066, or the CREATE MORE Act, which amended the CREATE law to enhance the competitiveness of the country’s investment incentive regime.
These laws, she said, will help boost investor confidence and increase foreign direct investments (FDIs) in the country.
“The peace deal resets the global backdrop; our job is to reset the Philippine investment story,” she said. (PNA)