Duterte's ICC arrest may disrupt markets, but could boost foreign investments long-term

Philippine financial markets may face short-term disruption following the arrest of former President Rodrigo Duterte by the International Criminal Court on Tuesday, March 11, for alleged human rights violations.

Economic expert Diwa Guinigundo and ISEAS-Yusof Ishak Institute Senior Fellow Jayant Menon predict that foreign investments could increase in the long run as the country enforces rule of law, though they note a potential small negative impact from the arrest.

Guinigundo highlighted political tensions between current President Ferdinand Marcos Jr. and Vice-President Sara Duterte, citing the fragile nature of their alliance known as 'Uniteam'.

Menon emphasized that while the Philippines has endured political instability in the past, built-in resilience could mitigate economic impacts from recent developments.

To maintain confidence in governance and economic stability, consistent communication with the public is essential to address potential market disruptions.