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UPDATE ON THE
ECONOMY AND
BUSINESS OPPORTUNITIES IN THE
PHILIPPINES
Stable and Resilient Economic Growth
8.0
7.0
6.0
5.0
GDP (2013)
7.2%
GDP (2012)
6.8%
Headline Inflation (2013)
3.0%
Headline Inflation (2012)
3.2%
4.0
3.0
2.0
1.0
0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP
Source: National Statistical Coordination Board & National Statistics Office
Continuous Inflow of OFW Remittances
• 2013: US$22.76 Billion (6.4% higher than 2012 record)
• 2012: US$21.39 Billion (6.3% higher than 2011 record)
• Remittance drew strength from demand for skilled and
professional Filipinos abroad, along with better data
capture through banks and financial institutions
3
Steady Export Growth
Merchandise Exports:
Service Exports:
2012: US$51.99 Billion
2012: US$20.4 Billion
2013: US$54 Billion
(3.6% higher than 2012)
2013: US$21.8 Billion
(anchored on BPM sector that
generated revenues of US$15.5 Billion
and direct employment of 900,000)
The Gross International Reserves reached
US$83.1 Billion in 2013
4
Steady Investment Flows
2013 TOP SECTORS
(% of Total Investments)
TOTAL BOI & PEZA APPROVED INVESTMENTS
(in PhP Billion)
10.4%
US$ 15.17B
US$ 17.48B
US$ 15.92B
1. Electricity, Gas, Steam & Air
Conditioning
2. Real Estate Activities
3. Manufacturing
4. Transportation & Storage
US$ 6.69B
US$ 5.05B
US$ 6.31B
5. Accommodation & Food Service
Activities
2013 TOP SOURCES
(% of Total Foreign Investments)
1. British Virgin Islands
2. U.S.A.
Total Investments
Foreign Investments
3. Japan
4. Netherlands
5. Singapore
Improving Global Competitiveness Ranking
World Bank
Ease of Doing Business
Report 2014
World Economic Forum
(2013/2014)
Global Competitiveness Index
Economic Freedom of the
World
(2013 Annual Report)
2014 Index of Economic
Freedom
+30
Out of 189
countries:
From #138 to 108
+6
Out of 148
countries:
From #65 to 59
+5
Out of 152
countries:
From #61 to 56
+8
Out of 177
countries:
From #97 to 89
6
Credit Ratings
INVESTMENT GRADE
FROM
Fitch Ratings
Standard & Poor’s
TO
BBB-
BB+
Outlook:
Stable
BBB
BB-
Outlook:
Stable
Baa3
Moody’s
Ba1
Outlook:
Positive
7
Strengthened Governance and
Anti-Corruption Measures
Transparency
International (2013)
Corruption Perceptions
Index
World Bank (2012)
Government
Effectiveness Indicator
+11
Out of 177
countries:
From #105 to 94
+1
Out of 215
countries:
From #57 to 58
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Investment Priorities Plan 2013
I. Preferred Activities
Regular List:
 Agriculture/ Agri-business and Fishery
 Creative Industries/Knowledge-Based
Services
 Shipbuilding
 Mass Housing
 Iron and Steel
 Energy
 Infrastructure
 Research and Development
 Green Projects
 Motor Vehicles
 Strategic Projects
 Hospital /Medical Services
 Disaster Prevention, Mitigation and Recovery
Projects
II. Export Activities
 Manufacture of export products
 Services exports
 Activities in support of exporters
III. Mandatory List
IV. ARMM List
9
The Philippine Advantage
10
The Philippine Advantage
Rich Talent Pool
Attractive
Investment
Incentives
First-Class
Lifestyle
Robust
Infrastructure
Strategic
Business Location
11
Robust Infrastructure
Airports
Railways
• 9 international
• 3 connecting
railways,
which span
across the
Metro
• 20 domestic
• 12 roll-on/ rolloff ports
Roads
• Subic-ClarkTarlac
Expressway
(SCTEX),
•North Luzon
Expressway
(NLEX),
•STAR Tollway
and Cavite
Expressway
Economic Zones
• 66 Manufacturing
EcoZones
• 197 IT Parks and
Centers
• 17 Agro-Industrial
EcoZones
• 18 Tourism
EcoZones
• 2 Medical Tourism
Zones
12
Strategic Business Location
The country’s location is a
critical entry point to over 500
million people in the ASEAN
Market and a natural gateway
to the East- Asian economies.
•
•
The country is likewise placed at the
crossroads of international shipping and
airlines.
Within Asia, the Philippines is reachable
within 3 to 4 hours by plane.
13
First Class Lifestyle
Second home to expatriates who enjoy the
company of the warmest people in the region,
the country's openness to varied cultures and a
decidedly global outlook.
Accessible and affordable luxuries – value-formoney housing, modern recreational facilities,
first-rate educational institutions adopting
international standards, business centers,
hospitals, etc.
A growing favorite tourist destination, as
evidenced by the steadily increasing tourist
arrivals.
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The Philippine Advantage
Attractive Investment Incentives:
INCENTIVE
Income Tax Holiday
(ITH)
ITH Bonus
BOI
(Executive Order No. 226, as
amended)
4 – 6 years (max of 8 years)
3 years provided the firm meets certain conditions
Special Tax Rate of 5% on
Gross Income
Importation of Capital
Equipment, Spare Parts and
Supplies
Wharfage Dues and Export
Tax, Duty, Impost and Fees
PEZA
(Republic Act No. 7916, as
amended)
CDC / SBMA
(Republic Act No. 7227 – Bases
Conversion Devt Authority
 Exempted from all local and national
taxes - value-added taxes, franchise
taxes, excise and ad valorem taxes)
Special Tax Rate of 5% on Gross Income
0% duty-free
Tax and Duty-Free
Exempted
None
Simplication of Customs
Procedures
Available
Employment of Foreign
Nationals
 Foreign nationals may be employed in supervisory, technical or advisory positions within 5 years from a
project’s registration, extendible for limited periods. The positions of president, general manager, and treasurer
or their equivalents, of foreign-owned registered firms may be retained by foreign nationals for a longer period.
 All foreign employees may bring with them their spouses and unmarried children under 21 years
of age.
15
Rich Talent Pool
•
We produce over 530,000 college graduates
per year across a wide range of disciplines.
Number of college degree
graduates per year
Our Professionals are :
• Highly Educated and English Proficient
• Strongly Customer Service Oriented
• Highly Trainable with Fast Learning Curve
• Adaptable to Universal Cultures
• High Level of Commitment and Loyalty
2013
Projection
Medical and natural sciences, allied
fields
158,159
Business, accounting, and related
fields
119,526
Social and behavioral sciences,
education
67,474
Engineering and architecture
57,799
IT-related and mathematics
57,921
Fine arts, masscom, humanities
13,549
Others
58,845
TOTAL Tertiary level
533,273
For further information, please contact:
Emmanuel Ang
Commercial Consul for Australia and New Zealand
Philippine Trade and Investment Center (PTIC) in Sydney
Philippine Department of Trade and Industry
Suite 302, Level 3, 301 George St., Sydney, NSW 2000 Australia
Phone No.: +61.2.9299 0002
Fax No.: +61.2.92990007
Email: [email protected]; [email protected]
Website: http://investphilippines.gov.ph/category/sydney