Senator Sherwin Gatchalian said on Sunday, November 16 he didn’t find it strange to see the stock market plunge to a new five-year low following the allegations made by former lawmaker Zaldy Co against President “Bongbong” Marcos.

Gatchalian, chairman of the Senate Committee on Finance said it is inevitable for the country’s stock market to plunge, as it is very sensitive to major public issues that can rock investor confidence in the economy.

“Ako, dati ako nagtrabaho sa stock market. Ang stock market kasi very sensitive yan sa, dalawang sensitive yan eh, sa emotion at sa chismis, (I used to work in the stock market. The stock market is very sensitive to, at least two things: to emotion and to gossip),” Gatchalian said in an interview over Radio DZBB.

“Kaya medyo pag tinitignan natin yung stock market, lalo na sa Pilipinas, short term ang outlook ng stock market natin sa Pilipinas dahil responsive yan kung ano naririnig nila ngayon (So when we look at the stock market, especially in the Philippines, the outlook of our stock market in the Philippines is short term because it is responsive to what they are hearing now),” the senator added.

“Pero ito yung  personal outlook ko at hindi ko ito isu-sugarcoat. Talagang may impact itong nangyayari sa ating bansa pagdating sa ekonomiya (But this is my personal outlook and I will not sugarcoat it. All these things happening in our country really have an impact when it comes to the economy),” he pointed out.

He cited three things that can actually have an impact on the current Marcos administration. Number one, he said, is public sentiment, which he said can ultimately lessen economic activity.

“Unang-una, yung public sentiment. Kung makikita natin, malaking bahagi ng ating ekonomiya, almost 60 to 70 percent, yung tinatawag nating household consumption. So, mahilig tayo mag-shopping eh, mahilig tayo gumastos. Dahil yung sentimyento hindi maganda, nakaka-apekto rin yan sa pagbibili  (First of all, public sentiment. If you look at it, a large part of our economy, almost 60 to 70 percent, is what we call household consumption. We love shopping, we love spending.  But because the sentiment is not good, that also affects purchasing),” he pointed out.

For instance, the senator said the Valenzuela City government has chosen to cancel their own Christmas party for the upcoming holidays.

“So, obviously, hindi na sila gagastos. Hindi na sila gagastos para sa Christmas party. Hindi na sila bibili ng mga gifts. Hindi na sila bibili ng mga exchange gifts. So, may ganyan na impact rin (So, obviously, they won't spend anymore. They won't spend anymore for the Christmas party. They won’t buy gifts. They won't buy anything for the exchange gifts. So, there's that kind of impact as well),” he said.

Moreover, he said, the public will also likely think twice spending at a time when most people are suffering from the recent calamities, earthquake, typhoons.

“So in other words, nagkasabay itong public sentiment, nagkasabay rin ito doon sa mga trahedya (So in other words, this public sentiment coincided with the tragedies),” he said.

Other than this, Gatchalian said there is also a significant reduction in the infrastructure projects undertaken by the construction industry due to the corruption issues now being hurled at the Department of Public Works and Highways (DPWH) and several contractors.

“Number two, nakita natin doon sa debate na ang construction bumagal by 4%. First time yan in many years in our country,” he said.

“Dahil nga ang DPWH ngayon, mas maingat na sila eh, at talagang binubusisi nila yung mga kontrata, bumagal yung kanilang execution ng projects (Precisely because the Department of Public Works and Highways has become more cautious and more meticulous with contracts, and their execution of projects slowed down as a result)” he lamented.

Gatchalian also said it is also evident that investors are weighing in on the corruption issues in the country especially whenever there are massive protests and demonstrations against the government.

“At pangatlo, yung mga investors dahil nga may naririnig silang mga ganitong korapsyon, may rally, may mga ganitong uncertainty, ayaw nila ng uncertainty (And third, the investors, because they hear about this kind of corruption, there is a rally, there is this kind of uncertainty, they don't like uncertainty),” he stressed.

“Marami dyan na hindi muna gumagastos so nagaantay muna bago maayos yung lahat (Many of them are not spending money for now so they are waiting for everything to settle down),” he said.

That is why, he said, it is crucial for the administration to yield faster results in its investigation into the flood control project anomalies and ensure that those behind it are prosecuted and jailed.

“Well definitely may corruption na nangyari at hindi naman natin pwedeng hayaan lang yan. Ang taumbayan gustong panagutin yung mga taong nagkasala at yung mga nagkasala dapat ikulong (Well, definitely there was corruption and we can't just let it happen. The people want those who committed crimes to be held accountable and those who committed crimes to be locked up),” the senator said.

“So yan ang pinaka basic para mabalik yung kumpiyansa ng taumbayan sa pamumuno, sa governance at, of course, sa ekonomiya natin (So that's the basic plan to restore the people's confidence in leadership, in governance and of course in our economy),” he reiterated.