Crisis may hit call centers--Negros dad

DUMAGUETE CITY—Business leaders in Negros Oriental are confident that the global financial turmoil will not have a big impact on the economy of the province, but warn that its effects maybe felt by next year.

Because the United States is a major trading partner of the Philippines, a slowdown in the US economy will affect the Philippines, said Councilor Manuel Sagarbarria, president of the Negros Oriental Chamber of Commerce and Industry.

“This will have an effect, but we do not yet feel it today. Maybe by next year,” Sagarbarria said.

The sugar industry may not take a big hit from the global slowdown as most of the sugar output is used for domestic consumption.

“We only export around four to six percent of our sugar to the United States,” he said.

But the call center industry, which has US companies as their biggest clients, could be affected.

“I don’t have the figures of how many OFWs (overseas Filipino workers) there are from Negros Oriental, but they are also likely to feel the effects of this situation. Definitely, this will have an effect on the construction and housing industry in the province,” Sagarbarria said.

Alex Sy, president of the Filipino-Chinese Chamber of Commerce in Negros Oriental, said the business sector in Negros Oriental was not likely to be affected by the crisis.

“There are some moneyed people who made stock investments, but this cannot affect the overall economy here,” Sy said.

“What is important is that the common people, the ordinary employees, are unaffected by the stock market,” he said.

He said the key to riding out the crisis was the strength of the banking system.

“It’s important that the banks maintain their liquidity. If some banks invested heavily in foreign stock and they’re liquidity is affected, this could result in a bank run.”

But the situation in the country has largely been normal, Sy said. “Even in Manila, the effects are not yet felt.”