According to the local unit of Dutch banking firm ING, the Philippines can still attract investments despite the 10 billion pork barrel scam. The ING Bank Manila Country Manager Consuelo Garcia viewed this as a good thing that can make the country improve the process and can make the country more efficient in releasing the government funds.

Garcia said that the investors still have the confidence due to the strong macroeconomic fundamentals of the country. She said that they have seen some of the reforms, although they want more. The country also became an investment grade which made the borrowing cost cheaper. She Mentioned that the cost of funding and expansion are still manageable because of the manageable inflation and the low interest rates.

The issue on pork barrel scam can possibly turn-off many investors so the statement of Garcia about the investors' confidence is helpful in keeping the country's investment grade. The level of investors' confidence can greatly affect the investors of Mutual Funds, Unit Investment Trust Funds (UITF), and Variable Universal Life Insurance. (VUL)

Thus, despite the issue of pork barrel that makes the country unstable, the country still did not lose investors. The demand in Mutual Funds, UITF and VUL may not be affected.

Source:

http://www.philstar.com/business/2013/09/06/1179541/ing-investor-confidence-still-ok-despite-pork-barrel-scam


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