MCI partners with University of Mindanao on Holding a Forum Today
Minority Care International in partnership with University of Mindanao held a forum focusing on "Current Global Economic Crisis: Implications and Challenges for the Philippines". MCI invited a notable main speaker, Dr. Dee W. Hilton, who has an extensive managerial experience in the field of global economy and investment.
Dee Hilton, executive director of NGC Bodily Injury Trust based in Texas, said "due to its minimal exposure to investment institutions in the US and strong economic fundamentals, the countries in the Association of Southeast Asian Region (ASEAN) are less susceptible to experience the recent US recession."
Hilton cited ASEAN's financial institutions ability to arrest the crisis and its current account and declining currencies as important factors that enabled the region to outperform most emerging markets.
"The global financial industry has recognized nearly $1.1 trillion in losses associated with globally originated mortgage, consumer and corporate debt. Fortunately, financial institutions in ASEAN appear to have very little direct exposure. This should lessen the downside risk for the region's economy and speed the timing of any future recovery", Hilton said. He added that "unlike the US which tend the run current account deficits, Asean countries tend to have the opposite. Additionally, the currencies of the Asean-5 have declined between 5% and 20% over the past year - this should help bolster the region's export competitiveness."
On the other hand, Hilton said, "Philippine reforms will be derailed by the global economic recession and the credit crisis has increased borrowing costs for the country. The P 50 billion stimulus package in the 2009 budget and the government selling US $ 1.5 billion bonds, which the country is paying 500 basis points over compared to US Treasuries would show President Arroyo's failure to balance the budget by 2010."
The main speaker also noted that neither significant structures reforms nor fiscal measures are to be expected over the remaining two years of the President's term.
Following the points given by the speaker, three reactors from the representatives of government, business and academic sectors, National Economic and Development Authority (Neda), Planning and Policy Division Chief Miguel S. Herrera III, Davao City Chamber of Commerce and Industry President Simeon Marfori II and Dean of UM College of Business Administration, Dr. Vicente Salvador Montano, respectively, shared their reactions and the programs that the institutions they epresent made to mitigate the effects of the crisis.
The timely forum was organized by UM, Minority Care International in coordination with the Davao City Government and gathered 500 people in the audience composed of the Business Administration faculty and students, Masters of Business Administration (MBA) graduate school students, school officials and members of the media.