Auto industry nonplussed by Philippines instability 

Since his ascent to power, Rodrigo Duterte has proven an enormously divisive figure. The Philippines president is popular for his strongman image, cultivated during his time as mayor of Davao City. His repeated support for the extrajudicial execution of drug dealers and other criminals has since become national policy, under the so-called ‘Philippine Drug War’. The policy has support among voters – indeed, the execution of “tens of thousands of drug dealers” was an important part of Duterte’s presidential campaign – but parts of the international community have been horrified by the scale of the killing, with thousands dead, including young teenagers.

Markets may now be responding to the turmoil. Inflation in the country has now surpassed targets, and the Philippine peso has weakened considerably against the dollar where other ASEAN currencies have strengthened. Yet for all its aversion to instability, the automotive industry remains firmly attached to the country. The Philippines remains an important consideration for OEMs in the ASEAN region, where sales have outperformed other Southeast Asian nations.