For two years in a row, the Philippine economy has been growing at a relatively steady pace. Back in 2016, the country ranked 9th on the United Nations Conference on Trade and Development (UNCTAD) survey. UNCTAD polls business leaders of multinational corporations to identify their top investment destination.
Last year, the Philippines fared even better. It moved up two notches in the 2017 UNCTAD survey, getting the 7th spot from among 15 developing countries where businesses are looking to invest.
A number of growth indicators seem to influence the increased investment in the Philippines. Just look at the following data and statistics:
- The country’s gross domestic product (GDP) numbers grew 6.6% in Q4 2017. The government was targeting 6.5% to 7.5% GDP growth. Among the strongest players were the manufacturing, trade, and real estate sectors.
- Growth for domestic demand was also recorded—from 6.4% in Q3 to 7.3% in Q4.
- By Q3 2017, the Philippines has overtaken China in terms of economic growth.
To top it all, the Philippines is expected to be aggressive in creating and implementing policies that will boost the country’s economic gains. Among the plans of the government is the “Build Build Build” program, an eight trillion peso initiative that’s expected to go in full swing from 2018 onwards.
This comes after the January implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) program, a revamped tax policy that aims to allocate additional funds toward the creation and upgrading of roads, highways, and other land projects.
What Makes the Philippines an Ideal Investment Partner
There are several factors that push the country toward developing a good investment environment and support your goal of doing business in the Philippines.
1. Strategic location
The Philippines is ideally situated in the fast-growing Association of Southeast Nations (ASEAN) region, which has a market base of hundreds of millions of people.
Filipino and other Asian consumers are willing to spend on key commodities and services, making them good prospects for your business. Private consumption in the Philippines is ever-growing, ranging from 5.9% to 7% in 2016 to 2017.
2. Highly educated workforce
Filipinos are among the most educated and highly trainable labor force in Asia, not to mention that the Philippines is a largely English-speaking country.
Traditional methods of education are now complemented with advancing technologies, increasing the computer and digital literacy of the average Filipino. Skilled employees and managers are also not hard to find, especially when you partner with a recruitment consultant in the Philippines that can help you find the talent that you need.
3. Expanding infrastructure
As mentioned, the Philippine government is committed to building more roads and bridges—infrastructure that’s necessary for moving goods fast from the producer to the consumer.
The country is also working on strengthening its information and communication technology systems. This is an important focus area, given that more and more communities across the world are going digital and are making transactions via online channels.
In addition, you could easily find office space in major business districts in the metro ready for your operations.
4. Growing domestic and export markets
More than 100 million people are living in the Philippines, which makes it 13th in the list of countries with the highest population worldwide. It’s a large consumer market that your business can tap into.
Further, the Philippines has an export market that includes such countries as Japan, the United States, Hong Kong, China, and Singapore. By doing business in the Philippines, you could serve these top export destinations, too.
5. Low cost of living
As an investor, you want to have access to a lifestyle that suits your preference and lets you enjoy in a new environment even miles away from your home country.
Major business districts in the Philippines are not only home to many first-rate business establishments and residential communities, but also offers these amenities at lower costs compared to other cities in the world.
6. Tax benefits to businesses
Many foreign companies are benefitting from the tax incentives offered to them by the Philippines. You may be eligible for tax cuts when you pass the accreditation of the Philippine Economic Zone Authority (PEZA), a government agency that helps businesses and investors like you to set up shop in the Philippines.
7. Tourism friendly
The Philippines abounds with tourist attractions – beaches and islands, water parks, world-class malls, and hotels, to name a few.
No wonder, tourists who are visiting the Philippines are at an all-time high—with visitors totaling to about 3 million from Q1 to Q2 2017. This demographic can spend roughly millions of pesos in any given month, which may boost your business as well.
The Philippines is primed for business, development, and investment now more than ever. Business executives are giving the country a thumbs-up rating for its economic initiatives from both the government and private sector. Let’s not forget that Filipino individuals and professionals are helping to make good things happen for the country.
SPECIALIST RECRUITMENT SOLUTIONS DELIVERING UNRIVALLED RESULTS
IN THE PHILIPPINES
Manila Recruitment is recognized as the leading recruitment firm in the Philippines for headhunting, executive search, expert, technical and IT recruitment. We share an unrivalled passion to help your business succeed by understanding your goals, then sourcing and providing you with your number one asset – driven, dedicated and exceptional people!
Experience the Manila Recruitment difference, and give your business in the Philippines a competitive advantage by contacting us today. Whether you are exploring an offshore solution, or are an established entrepreneur, SME or Multinational in the Philippines, our team has the experience and a tailored recruitment solution to introduce you to the top talent in the Philippines.