President Rodrigo Duterte remains popular in the Philippines, with his anti-drugs campaign receiving the support of the majority. But his continuing antics and recent tough talk against his critics have dominated the international headlines, casting a bad image of the Philippines and unnerving foreign investors and financial institutions.
Top economic officials of the Duterte administration, on their way to attend the annual World Bank-International Monetary Fund meeting in Washington, D.C., have sought to calm the jitters created by Duterte’s outbursts and rhetoric. They are out to talk to international credit-rating agencies, US newspapers and investors to “counter adverse media reports” about the Philippines.
The public relations mission comes amid the unflattering report of London-based think tank Capital Economics, which said Mr. Duterte’s talks had increased the potential downside risks to the economic outlook of the Philippines. “What has unnerved investors is a string of inflammatory statements and erratic foreign policy changes which have raised questions about Duterte’s judgment and his commitment to the rule of law,” says Capital Economics. “His anti-drugs campaign, which has led to thousands of extrajudicial killings, has generated negative headlines across the world.”
The country’s economic team has left to precisely address the negative reports coming out from the Philippines. Economic Planning Secretary Ernesto Pernia and his team—Budget secretary Benjamin Diokno, Finance secretary Carlos Dominguez III and Bangko Sentral ng Pilipinas governor Amando Tetangco Jr.—are set to meet with Moody’s Investor Service, Fitch Ratings and Standard & Poor’s to counter the negative news about the country.
Mr. Duterte, despite his inflammatory statements, has not tinkered with the current economic program. His administration, however, must move fast to erase the negative perception of the foreign media and key foreign financial institutions. The Philippines needs positive sentiments, not the negative ones, to keep the flow of investments and foreign funds.