The observation was made as AFP Chief of Staff Gen. Hermogenes Esperon Jr. retires and sets to turn over the AFP command to Philippine Army chief Lt. Gen. Alexander Yano on Monday, May 12.

Vivian Yuchengco of the Philippine Association of Securities Brokers and Dealers, Inc., and former chairwoman of the Philippine Stock Exchange, said the AFP command "is changing hands at a time of stability within its organization." General Esperon has done much to professionalize the AFP, she said.

The business sector welcomes this because a stable AFP helps us preserve a business environment conducive to the entry and expansion of investments, Yuchengco added.

Francisco Liboro of PCCI Securities Brokers Corp. and director of the Association of Stock Analysts of the Philippines, said the business sector "is hoping that the momentum of the AFP under Esperon will be sustained by his successor." The stability within the AFP and its gains in the anti-insurgency campaign are major plus points as far as the image of the country in the international business and financial communities is concerned, he said.

The reported diminishing influence of leftist groups in the regions due to the success of the AFP anti-insurgency drive sends positive signals that businesses and investments can now enter and expand outside of Metro Manila, he added.

"The absence of serious military adventurism within the AFP during the last two years helped the business sector preserve and take advantage of the gains of a favourable international economy, strong markets, and robust local currency. Fortunately, there were no serious threats of coups and mutinies during the last two years," he noted.