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INVESTING IN THE
PHILIPPINES IN 2009
PHILIPPINE EMBASSY PRAGUE
CZECH-ASIA FORUM 2009
KAMPA HOTEL, PRAGUE
02 MARCH 2009
Population
GDP growth
Forecast in 2009 (GDP)
GNP
Inflation rate
Total external trade
Balance of trade
Exports
Imports
Employment rate
Literacy rate
:
:
:
:
:
:
:
:
:
:
:
92.2 million
4.6% (Jan-Nov 2008)
3.7 to 4.7%
5.9% (Jan-Oct 2008)
7.1% (January 2009)
USD105.6 billion
USD7.6 billion
USD2.6 billion (Dec. 08)
USD3.3 billion (Dec. 08)
93.2%
92.3%
PHILIPPINE ECONOMIC
RESILIENCY PLAN 2009
•
Ensure sustainable growth and attain the higher end
of the growth targets;
•
Save and create as many jobs as possible;
•
Protect the most vulnerable sectors – poorest of the
poor, returning overseas Filipino workers, and
workers in export industries;
•
Ensure low and stable prices; and
•
Improve competitiveness in preparation for the
global economic rebound.
COMPONENTS OF THE ERP
•
USD3.4 billion increase in the 2009 budget over that of 2008 to hire needed
personnel such as teachers, policemen, soldiers and doctors; repair and
rehabilitation of government buildings and fast-track purchases of supplies and
equipment; strengthen agriculture support; implement quick-disbursing highimpact projects; and expand social protection programs
•
USD851 million earmarked for tax cuts for low and middle income earners
(USD425 billion) and the scheduled cut in corporate income taxes (USD425
million) as provided in the Revised Value Added Tax Law.
•
USD2.2 billion from GOCCs, GFIs and the private sector to fund infrastructure
projects
•
USD640 million to support pension disbursement and improve access to health
services
•
USD5.4 million support to returning overseas workers
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Creation of 180,000 jobs under the 6-month Emergency Employment Program
INVESTMENT PRIORITY AREAS
•
High-end, high-value investments
•
Services in IT, health & wellness, ecotourism, logistics
& the retirement industry
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Infrastructure
•
Manufacturing
•
Mining
THE SUPERREGIONS
Luzon Urban
Beltway
North Luzon
Central
Philippines
Cyber Corridor
Mindanao
INVESTMENT OPPORTUNITIES IN
INFRASTRUCTURE
•
Physical infrastructure – highways, railways, roads and
bridges
•
Power generation – those utilizing indigenous and
renewable energy sources, and other energy sources
adopting
environmentally-friendly
except
oil-fired
projects
•
Agricultural Infrastructure – irrigation, pre and post
harvest storage, agro processing and
packaging
facilities, transportation, and bulk storage
•
Mass housing
projects
–
low-cost
and
socialized
housing
INVESTMENT OPPORTUNITIES IN
INFRASTRUCTURE
•
Bulk water supply
•
Mass rail transport
•
Pipeline projects for oil and gas – transport of
petroleum products and natural gas,
petrochemicals, and similar products
•
Projects under Build-Operate-Transfer (BOT) Law
•
Pipeline projects for oil and gas – such as passenger
and cargo shipping, warehousing, ports, terminals,
and cargo air transport
Medium Term Public Investment Plan
for Infrastructure Development
Total investments = USD38 billion
4.45% of total GDP for 2006-2010
Power and
Electrification
21.10%
(USD8.0 b)
Transportation
51.96%
(USD19.7 m)
Water Resources
14.64%
(USD5.5b)
Communications
1.25%
(USD475 m)
Social
Infrastructure
9.60%
(USD3.6 b)
Support to ARCs
1.44%
(USD547 m)
Allocation of Transport
Infrastructure Investment
Urban/Rail
41%
USD8.1 b
Water Transport
4%
USD700 m
Air Transport
12%
USD2.3 b
Roads and Bridges
43%
USD8.6 b
Private
27%
LGUs
2%
GOCCs/GFIs
23%
Other Sources
4%
Phil Govt
44%
WHY INVEST IN THE PHILIPPINES?
•
quality manpower resources
•
strategic business location
•
liberalized and business friendly economy
•
hospitable lifestyle
•
unlimited business opportunities
SOURCES OF INFORMATION FOR WOULDBE INVESTORS
•
Board of Investments (http://www.boi.gov.ph) – for
information on general investment guidelines
•
Agencies of the Philippine government
(http://www.gov.ph) - main government portal
•
http://tradelinephil.dti.gov.ph/betp/dti2.main
Thank you!