Economic experts fear an uncertain future for the business-process outsourcing (BPO) sector in the Philippines now that Donald Trump has become the president-elect in the United States, owing to views on creating jobs overseas.
Peter Wallace, chairman and president of the Wallace Business Forum, also expressed apprehension over the election of Trump as president, explaining that should this come to pass, then the setting up of call centers in the country will decline.
“I am worried truthfully for the BPO sector, the call-center sector. If he makes true on his promise that he is going to stop the immigration of jobs overseas, we are in serious trouble. This is not a good man to have as president of the republic of the leading country in the world. This is scary,” Wallace said.
According to the American Chamber of Commerce of the Philippines (Amcham) Senior Adviser John D. Forbes, with Trump as president of the US, private-sector jobs in the Philippines could fall owing to the president-elect’s earlier pronouncements of stopping the immigration of jobs overseas.
According to Socioeconomic Planning Secretary and National Economic and Development Authority Director General Ernesto M. Pernia, the BPO sector were to stop growing and likely contract with Trump as US chief executive.
He feared a slowdown in foreign investments, as well, a development that could limit Philippine growth. He further said, should this happen, the Philippines could feel its impact over the medium to long term.
“Maybe there will be less investments coming here from the US. Maybe some BPOs will come back to the US,” Pernia said.
The experts agreed that an open economy is more beneficial for both countries if growth and development is the priority of both parties, emphasizing the importance of the import and export facilitation in economies.
“Well, an open economy is always better to a close, inward-looking economy,” Pernia said.
Wallace further said America should keep open its economy since it has been the leader in getting things done. He added he hopes that Trump listen to wiser counsel and keep the US economy open.
“You know, I don’t think there is any question today that the opening up of economies is the right way to go if you really want to develop. To go back would be a very big mistake. I am hoping Mr. Trump will recognize this as he becomes president and listen to wiser counsel and agree to the continuing opening up that America has led for decades. I mean, it is the leading country in the world to opening up and getting things going. It will be a serious mistake for this man to turn it around and go the other way,” Wallace explained.
Forbes also said trade is an important aspect of the growth of an economy, as it circulates a lot of funds among different economies.
“I am concerned about a recession [when he] implements his proposal to put a 35-percent tariff on exports to the US from China; that China will retaliate and that will have an effect on the growth of Asia and the US,” Forbes said.
Forbes and Wallace also said President Duterte and Trump should get on well and understand each other.