CAGAYAN DE ORO CITY, (PNA) — The government’s economic managers said the ongoing fighting in Zamboanga City has minimal or no impact on the country’s overall economy, and that the Aquino administration is committed to further advance Mindanao’s quest for peace and development.
During the Midyear Philippine Economic Briefing, the Cabinet members said the crisis is not taking a toll on the country’s overall economy, which has been logging stellar performances in the past few quarters.
Finance Secretary Cesar Purisima said the President Benigno Aquino III is bent to make Mindanao as a “major area of opportunity.”
Given its size, an event in the western side might not necessarily affect other parts of Mindanao, like Cagayan de Oro City or Davao City, where a number of businesses are.
“Nevertheless, we have to settle issues [there],” Purisima said.
Budget Secretary Florencio Abad said the MNLF that attacked Zamboanga is “just a faction” of the organization and that the government’s communication channels are still open despite the actions of the splinter group. Therefore, their size is “manageable.”
“This is so different from the armed encounter in the past. I think more and more territories are being recovered by the government,” Abad said.
The reason why the fighting between the military and the MNLF has become protracted is because of the government does not want to have more civilian casualties, especially the rebels have taken hostages who they used as human shields.
“I don’t think the situation there would cause huge economic dislocation, judging by the amount of calamity assistance that is needed to be provided,” he said, adding that the amount for relief and rehabilitation may be significant but not that big to make a dent on the entire Philippine economy.
The Philippine Chamber of Commerce and Industry (PCCI), on the other hand, pledged full support for post-crisis recovery once the standoff, now on its 11th day, is resolved.
In a statement, the country’s largest organization of businessmen said it will provide support as follows:
Extend immediate relief and social services to the areas affected by the standoff in Zamboanga City;
Help business operations get back on track; and
Rebuild damaged infrastructure.
PCCI president Miguel Varela said the board in a meeting agreed to back a “mini-Marshall plan” to bring back Zamboanga City on its knees.
PCCI said Zamboanga City accounts for 40 percent of gross regional domestic product and is home to 16 canning factories supplying 80 per cent of the country’s sardines. The city also is the gateway to other Asean countries when the region’s economic integration starts at 2015.
Citing Bangko Sentral ng Pilipinas (BSP) data, PCCI said the standoff in Zamboanga City cut back money circulation by P50 billion during the first nine days of the conflict.
Varela said PCCI will ask the government to expedite the processing and release of calamity loans from the Social Security System, Government Service Insurance System, Pag-Ibig, and other government financial institutions.