The Philippines has all the potentials to be included in the radar screen of fund managers in the emerging markets in Asia in the economic upturn if reforms are pursued.

This was the assessment of April Lee-Tan of CFA (Certified Financial Analyst) Philippines at the launch of the 9th Pacific Region Investment Conference to be held here on October 8 and 9 organized by the Asia Pacific Association for Fiduciary Studies (APAFS).

According to Tan, the Philippines has all the potentials to be in the radar screen of fund managers holding investment portfolio that they can invest, especially in emerging markets but unfortunately the country is not in their radar screen.

“This is not because of our performance but because our size is small,” Tan said noting that the Philippine Stock Exchange could average only P3 billion or $60 million in value of shares traded for a day but this is transaction represents only one company in other emerging markets like China and Brazil,” she pointed out.

Tan, however, said that the Philippines should be more marketable if the market is further expanded to attract more investors.

For instance, the Philippines has a rapid population growth. “What is driving an economic growth? It is the population so that is one benefit for the Philippines,” she said.

Other factors include the outsourcing trend, which is favoring the Philippines, the huge overseas Filipin workers (OFWs) remittances, the consistent consumer sector, and low interest rate that fuels growth in the real property sector.

To further expand the market, Tan said there are economic reforms that are needed like the real estate investment trusts (REITs) bill, which has reached a second reading at the Senate.

REITs would provide relief to property investors whose confidence has been shaken by the subprime crisis in the United States.

Tan further said there is a need to sustain improved collection of taxes to attain a balanced budget high interest rates. She explained that high interest rate is a result of poor revenue collection forcing the government to borrow funds.

Tan noted that the administration has tried to solve the chronic problem of budget deficit but unfortunately a balanced budget is not attainable this year because of the government increased spending to stimulate the economy during this crisis period.