MANILA, Philippines – A former Bangko Sentral ng Pilipinas (BSP) official believes the arrest of former president Rodrigo Duterte could entice more investors to come to the Philippines.
Former BSP deputy governor Diwa Guinigundo said the arrest has so far spooked investors amid worries that turning over Duterte to the International Criminal Court (ICC) may trigger political instability. Investors may also want to see whether the Philippines upholds human rights within its borders.
However, Guinigundo believes that investors will eventually take the news as a sign that the Philippine government is willing to uphold the rule of law and does not tolerate extrajudicial killings.
“So in the short run, maybe the financial markets will be disturbed, it can be upset. But over time, people will realize that something can be done here in the Philippines, we don’t tolerate these kinds of offenses,” he told reporters on the sidelines of the Management Association of the Philippines’ economic briefing on Wednesday, March 12.
Duterte was arrested on Tuesday, March 11, after the ICC issued a warrant for his arrest over crimes against humanity committed in his bloody drug war. Philippine authorities implemented the arrest warrant as part of the country’s commitments to Interpol.
Apart from economic concerns such as inflation and employment, corruption remains one of the top concerns for Filipinos in the 2025 midterm polls. (READ: [DECODED] Corruption, inflation, education are top of mind for voters – Nerve survey)
Uniteam breakup and the economy
Guinigundo said that the split of President Ferdinand Marcos Jr. and Vice President Sara Duterte’s Uniteam alliance is a risk to the country’s economic growth.
According to the former BSP official, the Uniteam was “fragile from the very beginning” since Marcos and the Vice President had their own agenda. He also raised corruption allegations regarding Sara’s use of confidential funds and the remittance of PhilHealth funds to the national treasury.
Guinigundo added that investors are currently looking at whether Duterte’s loyal following will heed calls to stage what they describe as the next “people power.” After all, he said, a stable political environment means investments and production means remain stable.
“It [calls for people power] started with the former spokesman, Harry Roque. Now it depends on how this is going to work out. If it attracts a big crowd, this is something that would upset and disturb the financial markets,” he explained.
Guinigundo said that the government can ease investors’ and Filipinos’ nerves by laymanizing the Philippines’ commitments to Interpol and explaining why the ICC’s arrest warrant was served despite Manila’s exit from the ICC in 2019.
“People will be assured that this is something that does not concern them directly. It is a police matter and it was served, the arrest warrant was served,” he said.
“That’s what our government should do. And make sure that nothing of the same sort will happen again.” – Rappler.com