Interviewed for CNN’s Talk Asia, Jaime Augusto Zobel de Ayala, chairman and chief executive officer and Fernando Zobel de Ayala, president and chief operating officer of the Ayala Corp. discussed the Philippine economy, the future plans for their business empire and what it was like for them growing up.
Jaime told CNN Correspondent Andrew Stevens that despite weaknesses in the global economy, the Philippines has a demand component of consumption, which has been lacking in many developed countries.
“We have a fairly unique business model in the country–the service economy is very much alive in our country. Manufacturing’s been weaker, but the service economy is alive,” he said.
He added that globally, Filipino service providers in different fields have been in demand and that about 10 million Filipinos abroad send their earnings back to the country and drives the consumption.
“Our housing, our telecommunication, the needs of households…and so the economy has continued to move, based on this consumption-led model,” he told Stevens.
New standard
The brothers also expressed faith in the Aquino government, saying the President and his cabinet have set a new standard in governance. Fernando said the current administration’s efforts at introducing reforms has brought a renewed confidence in the Philippines.
“It’s only been about a year and a half, but so much has been done to restore confidence. They’ve been extremely careful in how public funds are spent. They’ve made it very clear that foreign investment would be very welcome and that they will have a level playing field when they come to the country. And we’ve seen the results of that,” he said.
Source : SunStar
