The recent spate of controversies concerning rule of law in the Philippines may not make foreign investors pull out from the country, but may adversely impact those who are still planning to invest, according to risk consultant Roberto Herrera-Lim, managing director for Southeast Asia of Teneo Intelligence. Investors planning to do long-term business in the Philippines are now considering how stable the legal system is in the country, Herrera-Lim says. While it would be an exaggeration to say no investor will now come to the Philippines, the recent political turmoil is a negative for those who take alonger term. Legal instability is not unique to the Philippines, according to Lim. Still, other Southeast Asian countries have been able to insulate bureaucracy and legal institutions from politics.
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