Trade
Opportunities in the Philippines
Why
the Philippines
People Power
The Philippines is ranked #1 in the availability of knowledge-based
jobs and workers worldwide and ranked 4th among Asian nations in
labor quality, according to a survey conducted by the U.S. based
Meta Group. Aside from the huge pool of productive, trainable and
multi-skilled labor force, the Philippines competes in the quality
of its managers and information technology (IT) staff and engineers.
The unique edge comes from a high level of proficiency in English
(the Philippines is the 3rd largest English-speaking country in
the world).
Location
The
Philippines is located in Asia - today, the fastest growing region.
Flanked by two great trade routes - the Pacific Ocean and South
China Sea - the Philippines is an ideal base for business, a critical
entry point to over 500 million people in the ASEAN market. The
country is a natural choice as an ASEAN Gateway in the international
shipping and air lanes, particularly European and North American
businesses.
First-Class
Lifestyle
The
Philippines is the best Asian country in overall quality of expatriate
life, according to the March 2000 survey of Hong Kong's Political
Risk Consultancy Ltd (PERC). The Philippines ranked third in all
countries surveyed - next to Australia and the U.S. - and was ahead
of Singapore and Japan. Rated highly were its cultural compatibility
with expatriates, its housing, sporting and recreational facilities,
quality healthcare and first-rate educational institutions.
Abundant
Resources
An
archipelago like the Philippines offers diverse natural resources,
from land to marine to mineral resources. It is also the biggest
copper producer in Southeast Asia and among the top ten producer
of gold in the world. It is also home to 2,145 fish species, four
times more than those found in the Bahamas. The 7,100 islands boast
of beautiful beaches and breathtaking sceneries that offer soothing
leisure and relaxation spots for vacationers and tourists.
Low
Cost of Doing Business
Wages
are typically less than a fifth of that in the U.S. Local communication,
electricity and housing costs are also 50% lower compared to the
U.S. rates. Foreign companies that are now outsourcing programming
and business processes to the Philippines estimate 30 to 40% business
cost savings, 15 to 30% call center services and application systems
and 35 to 50% software development.
Business-Friendly
Policies
The
Philippine government has redefined its role through privatization
that allowed private sector participation in developing infrastructure
and services in the country. It is adopting the innovative Build-Operate-Transfer
scheme, a model now being followed by other countries due to its
success.
The
country has opened up its economy by allowing 100% foreign ownership
in almost all sectors of the economy. It has strengthened its capital
markets and deregulated the banking, insurance, as well as the shipping
and telecommunication sectors, removing most, if not all, the monopoly
structures in the Philippine market economy.
Attractive
incentive packages are available to qualified enterprises in the
country's numerous Special Economic Zones and Industrial Estates.
The Special Economic Zone's are being nurtured to become balanced
agricultural, industrial, commercial and recreational hubs of activity.
Corporate
income tax has been reduced to 32% from 34% in 1998, with companies
located in economic zones/export zones subject to only a 5% overall
tax rate.
Unlimited
Business Opportunities
As
ASEAN economies integrate within the framework of the ASEAN Free
Trade Agreement (AFTA), the Philippines is the natural and most
strategic location for firms that want access to the large ASEAN
market and its vast trade opportunities. It has complied with WTO,
APEC, and AFTA agreements and has reduced tariff rates on manufactured
goods. The Philippines has enhanced and primed up various areas
of business for investors and offers a dynamic consumer market accustomed
to array of product choices created by a competitive domestic economy.
All
You Need and More
The
Philippines offers state-of-the-art telecommunications facilities,
adequate and uninterrupted power supply. There are ready-to-occupy
offices and production facilities, computer security and building
monitoring systems, as well as complete office services in specialized
IT zones. With the government's focus on building up an IT-enabled
economy, the Philippines is on its way to becoming the E-services
Hub of Asia. |
