Cebu Daily News / Enterprise

http://globalnation.inquirer.net/cebudailynews/enterprise/view_article.php?article_id=170815

Obama can turn around US economy--bizmen By Cris Evert Lato Cebu Daily News Posted date: November 07, 2008 Many Cebu businessmen are confident that United States president-elect Barack Obama will be able to turn around America's economy, which is currently mired by the worst financial crisis since the 1930s. The positive change in the economy will trickle down to America's trading partners such as the Philippines and more specifically Cebu, where most of its exports goes to the US, said Efrain Pelaez, president of Mactan Island Chamber of Commerce and Industry. Eric Mendoza, president of Mandaue Chamber of Commerce and Industry, agreed saying that Obama's victory “will bring more optimism to the world.” “His youthful dynamism projects a stronger image, which (will help tackle the issue on the) worst financial crisis. A shorter recession in the US (if this will happen) will especially benefit us in the Philippines,” he told . Since Obama once was a student of an Indonesian school, Rey Calooy, president of Filipino-Cebuano Business Club, said the president-elect's heart is also close to Asians. “Many Cebu businessmen express hope that Obama's victory will stimulate the world economy (for the better),” said Calooy. But the effect on Cebu of the Hawaii-born Obama would only be felt depending on the rate at which the newly elected president can make the US economy better, said Clarito Fruelda, vice president for external affairs of Cebu Chamber of Commerce and Industry. “The question is how fast Obama can turn the economy around. Hopefully, he can do it fast especially that we are bonded with USA politically and economically. We can only hope for the best,” he said. Fruelda said the effects of the US economy will be evident in Cebu as 70 percent of its export market including gifts, toys and housewares, furnitures and fashion accessories are sold to the US. Meanwhile, Bonifacio Belen, executive director of Cebu Educational Development Foundation for Information Technology, said he remains confident that the outsourcing industry will be vibrant even if Obama is pressured to produce more jobs within the US. Belen said the “protectionist mindset” of Obama to bring back jobs in their territory is understandable given the economic situation. But this does not mean a significant slowdown of the outsourcing sector in the Philippines, he said. “The salary companies are paying the employees here is only 10 percent of what they are paying in the US. Unless the Americans settle for radical reduction (then maybe we can see significant decrease in outsourcing).” He said there might be a slight reduction in outsourcing but noted that the industry is positive that outsourcing will continue given the strong commitment of American companies in the Philippines. Businessman Robert Go, on the other hand, said the overwhelming decision of the American people for change will serve as the catalyst of economic improvement. “Banks, financial companies will work out with new government and new confidence will come in and that is important,” he said. “The confidence and trust toward the new president will in fact be a factor for better economy and might prevent recession. It will hopefully save global economy or at least minimize the impact,” Go added.