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Business Opportunities in the Philippines

Business Opportunities in the Philippines. Stable and Resilient Economic Growth. GDP (2013) 7.2% . GDP (2012) 6.8% . Headline Inflation (2013) 3.0% . Headline Inflation (2012) 3.2% . Source: National Statistical Coordination Board & National Statistics Office.

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Business Opportunities in the Philippines

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  1. Business Opportunities in the Philippines
  2. Stable and Resilient Economic Growth GDP (2013) 7.2% GDP (2012) 6.8% Headline Inflation (2013) 3.0% Headline Inflation (2012) 3.2% Source: National Statistical Coordination Board & National Statistics Office
  3. Continuous Inflow of OFW Remittances
  4. Service Exports: Merchandise Exports: 2011: US$48.31 Billion 2012: US$51.99 Billion (7.6% higher than 2011) Steady Export Growth 2011: US$11.9 Billion 2012: US$13.1 Billion (anchored on BPO sector with direct employment of 772,000) Growth of 11.3% in Gross International Reserves to an all-time-high of US$83.8 Billion in 2012 relative to US$75.3 Billion in 2011
  5. Steady Investment Flows TOTAL BOI & PEZA APPROVED INVESTMENTS (in PhP Billion) * US$ 17.48B 10.4% US$ 15.92B US$ 15.17B US$ 6.69B US$ 5.05B Total Investments Foreign Investments *Preliminary Estimate
  6. 7. Improving Global Competitiveness Ranking
  7. Credit Ratings Standard & Poor’s INVESTMENT GRADE FROM TO BBB- Outlook: Stable Fitch Ratings BB+ BBB- Outlook: Stable BB- Baa3 Outlook: Positive Moody’s Ba1
  8. Strengthened Governance and Anti-Corruption Measures
  9. I. Preferred Activities Investment Priorities Plan 2013 II. Export 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 Manufacture of export products Services exports Activities in support of exporters III. Mandatory List IV. ARMM List
  10. Food Processing Other Countries King Salmon grown, washed, gutted, without head, in New Zealand Exported and consumed in Australia, NZ, USA, Korea, HK, etc. Exported to Philippines (GenSan) duty free Filleting, Salting, Smoking, Slicing, and Packaging, in the Philippines
  11. Auto Parts Philippine top exports products to Australia are auto parts Auto part exports include wiring harness, steelbelted tires, lead acid batteries, road wheels, intake air filters, brake and clutch pedals are also major exports products to the world
  12. Furniture and Homeware
  13. Shipbuilding Philippines is now the 4th largest shipbuilder in the world Building a wide range from small high tech vessels to the largest commercial ships in the world One company Hanjin employs 21000 workers in Subic and makes 320K DWT Capesize tankers One of Australia’s top 4 shipbuilders, Austal, just located in Cebu last year
  14. ICT and Business Process Outsourcing One of the most active sectors right now for global and Australian investments Philippine IT-BPM industry size 2008–2014e; US$ billion x% YoY Growth CAGR: ~20% 19% 24% 25% 17% 34% # FTEs (~’000) 777 383 424 527 640 Global share1 6% 7% 9.5% 8% 10.4%
  15. ICT and Business Process Outsourcing One of the most active sectors right now for global and Australian investments 15%‒20% CAGR over next 5 years expected PPP CAGR: ~19% Philippines IT-BPO industry US$ billion CAGR: ~28% Low-end 2016 Baseline 2016 Road Map 2016 2011 2012 2006 2009 2010 4.5% 2.6% 4.2% 5.2% 5.9% 5.0% 6.7% 8.3% % of GDP Direct employment 1.3M 240K 900K 423K 525K 638K 772K 680K Indirect employment 1.6M 1.9M 1.7M 2.2M 3.2M 600K 1.3M 1.1M
  16. The Philippine Advantage Robust Infrastructure Strategic Business Location First-Class Lifestyle Attractive Investment Incentives Rich Talent Pool
  17. The Philippine Advantage Robust Infrastructure 9 international and 20 domestic airports, 3 connecting railways which span across the Metro, and 12 roll-on/roll-off ports. Newly constructed roads such as the 94-kilometer four-lane Subic-Clark-Tarlac Expressway (SCTEX), the 84-kilometer North Luzon Expressway (NLEX), the 42-kilometer STAR Tollway and Cavite Expressway (CAVITEX)
  18. The Philippine Advantage 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.
  19. The Philippine Advantage 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-for-money 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.
  20. The Philippine Advantage Investment Incentives Income Tax Holiday (ITH) for 4 years, extendable to 8 years After the ITH period, special 5% tax on gross income in lieu of all national and local taxes Exemption from duties and taxes on imported capital equipment, spare parts, supplies, and raw materials Domestic sales allowance of up to 30% of total sales Exemption from export taxes, wharfage dues, imposts and fees Exemption from Value Added Tax (VAT) on allowable local purchases such as telecom, power, and water bills Additional deduction of 50% of total manpower training cost under the special 5% gross income tax regime
  21. The Philippine Advantage Our People Abundant labor force of 39+ million 460,000+ college graduates per year 3,000+ CPAs English proficiency & other languages Affinity with Western culture Customer service orientation Highly trainable Cost effective High level of commitment and loyalty
  22. 8. Dynamic People Asia’s friendliest country 8th World’s friendliest country ~ HSBC World Explorer Survey 2011 ~ 12th largest population in the world Set to become the world’s 16th largest economy, up 27 places from today One of the new emerging countries due to favorable demographics and strong economic fundamentals ~ HSBC’s “The World in 2050” Report ~
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