Mission Love Seeds

There has never been a better time to Invest in the

PhilippinesOur Mission Statement

Mission Love Seeds, Inc., was created to feed and clothe the

hungry and poor through out the world, to demonstrate God’s love,

and open doors to tell children and their families about the great gift,

Jesus Christ.

Contact UsMission Love Seeds

55 Country Club Drive EastDestin, FL

32541USA

Toll Free: (850) 650-5583Fax Number: (850) 650-3523

If you are in crisis, please call :1-800-273-8255 (TALK) or call 911

Email Us: http://www.missionloveseeds.org/

Core Focus

There is a high risk of food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever vectorborne diseases: dengue fever and malaria (2008)

The Philippines have a Population that is 30% below the poverty line. (est. 2003)

There has been an increase of domestic methamphetamine production despite government crackdowns; major consumers of amphetamines and longstanding marijuana producers mainly reside in rural areas where Manila’s control is limited. (Asian Human Rights commission, (2005).

Investing in the

Philippines

There has never been a better time to invest in the Philippines. The economy has liberalized and the government is investor-friendly. Endless opportunities abound in infrastructure, environment, social services, telecommunications, energy and manufacturing. (Development Bank of the Philippines, 2008) Makati City is Manila’s financial

center, and the country’s commercial heart.

Registration Procedures

Registration Process

A copy of the articles of incorporation and bylawsThe corporate treasurer’s affidavit of actual deposit of paid up-capitalThe incorporators’ statements of assets and liabilitiesA bank certificate of deposit on paid subscriptionsAuthorization by the corporate treasurer for the SEC to verify the corporation’s bank accountsA written undertaking to change the corporate name if this similar to or resembles the name of an existing corporationThe taxpayer identification numbers of the incorporatorsAn undertaking to comply with the SEC report requirementsPersonal information on directors, officers and stockholdersBesides the regular requirements mentioned above, there are business entities to register with.

Business Entities

Bureau of Trade Regulations and Consumer Protection (BTRCP): registration of business name/single proprietorshipsCentral Bank of the Philippines (Bangko Sentral ng Pilipinas): registration of foreign investments for purpose of capital, repatriation and profit remittances. Bureau of Internal Revenue (BIR) – securing tax identification numberMetro Manila Authority (MMA): - securing vocational clearance/business permit for firms located in Metro ManilaCity Halls/Municipal Offices in the localities where the business will be set up: - securing building permit and license to do businessSocial Security System (SSS): - Securing employers SSS-numberMedicare: - Securing membership in the government health care benefits systemManila Electric Co. (MERALCO) or local electric utility firms: Securing electric services connectionMetropolitan Waterworks and Sewerage System or local water utilities administration: - Securing water services.

Licenses, & Registration Certificates

Government Agency Office AddressesBoard of Investments (BOI) www.boi.gov.ph

Industry and Investments Bldg,. Makati CityTel. 897-6682, 895-3640 to 41

Philippine Economic Zone Authority (PEZA)

www.peza.gov.ph

Roxas Boulevard cor. Pasay City Tel. 551-3454 to 55

Subic Bay Metropolitan Authority (SBMA)

www.sbma.com

Building 229, Waterfront Road,Olongapo City Tel. (63-47) 252-4242

Clark Development Corporation www.clark.com.ph

Building 2127 E.L.Clark Field, Pampanga Tel. (045) 599-2092, 599-9000

John Hay Poro Point Development Corporation

Club John Hay Baguio City Tel. (074) 442-7902 to 08

Cagayan Economic Zone Authority

www.cagayanfreeport.com

7th Floor Westar Building, Pasig City Tel. 636-2779 to 82

Zamboanga Economic Zone Authority

www.zambofreeport.com

San Ramon, Zamboanga City Tel. (062) 992-2012

Before investing and engaging in business in the Philippines, the necessary licenses or registration certificates from the appropriate government agencies needs to be obtained. The registration process starts with the Securities and Exchange Commission (SEC) If the proposed project or activity qualifies for incentives, the foreign investor may file it’s application with the appropriate government agency depending on the project’s location, as follows: (PricewaterhouseCoopers, (2004)

About Mission Love Seeds

Mission Love Seeds was formed in December of 2004 to help feed families in the Philippines. Our staff helps administer the food supply going to families, medical assistance, and a Bible study program. Families are provided food and care on a monthly basis. After Hurricane Katrina we felt the need to help at home as well. We continue our work in the Philippines but have expanded to helping families in Mississippi. Our bas and mission is ever expanding and we encourage people to not only volunteer contributions but also time. (Mission Love Seeds, Inc. 2008)

Our work is currently carried out in the villages of Admiral, Sitio Pantay, Binayuyo and Dumpsite located near Antipolo City. Each village is unique among itself but still need the basics for life. For most just getting water is a daily chore. (Mission Love Seeds, Inc. 2008)

Philippine Economy

The Philippines have a mixed economy market that is now growing faster than it has in the last 25 years with real GDP growth exceeding 7% in 2007. Philippine economic growth eased to a three year low of 4.6% in the second quarter and consumer spending waned. Inflation accelerated up to 12.6% in August, 2008 from 12.2% in July of 2008. Bangko Sentral raised inflation for 2008 between the percentages of 9% to 11%. The government has lowered its 2008 growth target to between 5.5% and 6.4% which would end up being a huge slowdown from 7.2% in the year 2007. Consumer spending growth slowed to 3.4% and Government spending fell 5.1%. Exports make up about two-fifths of the economy which added 7.7% for 2008 and services climbed 4.3%. Philippine stocks and the peso fell with concern that the government may expand subsidies for the third of the 96 million population that lives on less than $1 a day which widens the fiscal deficit. (Hugh, E., 2008)

Remittances from Philippine citizens working abroad also amounted to 13% of GDP in 2006 according to World Bank estimates. (Hugh, E., 2008)

Philippine Economy

The Philippine annual inflation rate accelerated in July, 2008 hitting a near 17-year high of 12.2%. June inflation was 11.4% while inflation in July 2007 was only 2.6%. (National Statistics Office, 2008). The July figure was the highest since December 1991. (Hugh, E., 2008)

Philippine producer prices remain contained, hitting only 3.3% in June, 2008. (Hugh, E., 2008)

Philippine Economy

The Philippine Central Bank raised Interest Rates and forecast inflation will exceed last month’s 14-year high on record oil and food prices. It went from 0.5% to 5.75%. (Hugh, E., 2008)

GDP growth accelerated to 5.6% in the second quarter. The $118 billion economy expanded 5.2% in the first three months, the slowest in more than a year. (Hugh, E., 2008)

Philippine EconomyThe total land area of the country is approximately 300,000

square kilometers, about the size of Italy or the state of Arizona in the United States. The Philippines compared to it’s Asian neighbors will more than likely suffer a hard-hit in the upcoming months due to a wide range of sectors weakening U.S. economy. 2008 is going to be a “hard year” for Filipinos and the U.S. with the archipelagic country’s #1 export market, is already facing a growth slowdown. Depending on how the U.S. stirs it’s economy most probably the Philippines will go through hard times for the rest of 2008. The Philippines have managed to reduce their dependence on the U.S. as the destination of most of its products from 30% down to 17% in recent years.

The Filipinos export to alternative markets such as China, Japan, and India which are also closely interwoven with the U.S. market. About 50% of total remittances to the Philippines come from the United States and Canada and as the economies of other major host countries slow down, the remittances to the Philippines will also be affected and the Philippines will take longer to recover. The Philippines compared to their Asian neighbors will take longer to recover a situation like this because they have a consumption led economy which is dependent on whether there will be more job-generating investments. (Xinhua News Agency, 2008)

Philippines Relations The Philippines have good relations with its Asian Neighbors. In

August 1967 the Association of Southeast Asian Nations was formed by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to pursue economic, social, cultural, and technical cooperation. The Philippines has had very few disputes with Indonesia or Singapore, and relations remained neighborly in the early 1990’s. The Philippines also have a cooperative relationship with Thailand. Philippine relations with Malaysia was bedeviled with a small lingering dispute over the status of Sabah which is the northeast corner of Borneo until Prime Minister Mahathir bin Mohammad arrived for ASEAN summit. There is little diplomatic or cultural intercourse between the Philippines and Vietnam. The Philippines joined various ASEAN states which would oppose Vietnam’s occupation of Cambodia. (Country Studies, 2008)

Philippine-Japanese relations are smooth and successful despite memories of the cruelty of the Japanese during their occupation of the Philippines in World War II. Philippine relations with China and Taiwan were cautious in the 1990’s. Manila’s relations with Beijing were hostile in the 1950’s and 1960’s. The Filipino – Chinese business community has many connections with relatives and partners in Taiwan, Diplomatic relations between Manila and Beijing were opened in 1973 and since then the relationship has been correct but not warm. China sought to conduct an “oil diplomacy” with the Philippines, a country that is completely dependent on imported oil. (Country Studies, 2008)

3%

7%

7%

8%

17%

13%6%

6%

7%

8%

4% 6%7%

Growth

Agriculture, Fisheries, and ForestryCorn sub-sectorBanana ForestryMining and Quarrying ConstructionServices SectorTransportation and Communications TradeFinance Real-EstatePrivate ServicesGovernment Consumption

Broad Based GrowthFor all major Sectors of the Economy

Strengths Complementing One Another

The Philippines appears to be adjusting successfully to changing international demand and Chinese competition, increasing its net exports in a majority of sectors where it competes with China. However, China may present a low and declining competitive challenge to the Philippines’ net exports in part because the Philippines is not a strong exporter of the labour intensive products economies at a similar level of development usually rely on. Nevertheless, the Philippines is highly complementary with China’s net import demand, particularly in electronic components, which should assist its future export growth. (Department of Foreign Affairs and Trade, Advancing the interests of Australia and Australians internationally. (2008)

U.S. – Philippine relations are based on shared history and commitment to democratic principles, as well as on economic ties. The historical and cultural links between the Philippines and the U.S. remain strong. The Philippines modeled its governmental institutions on those of the U. S. and continues to share a commitment to democracy and human rights. At the most fundamental level of bilateral relations, human links continue to form a strong bridge between the two countries. There are an estimated four million Americans of Philippine ancestry in the united States, and more than 250,000 American citizens in the Philippines. Until November of 1992, pursuant to the 1947 Military Bases Agreement, the United States maintained and operated major facilities at Clark Air Base, Subic Bay Naval Complex, and several small subsidiary installations in the Philippines. In August 1991, negotiators from the two countries reached agreement on a draft treaty providing for use of Subic Bay Naval Base by U.S. forces for 10 years.

Strengths Complementing One Another

U.S. – Philippine relations improved and broadened and maintained important security dimensions. U.S. investment plays an important role in the Philippine economyPhilippine negotiators concluded a Visiting Forces Agreement (VFA) which increased military cooperation under the MDT. President Arroyo has repeatedly stressed close friendship between the Philippines and the U.S. Both governments seek to revitalize and strengthen their partnership in working towards a tighter security, prosperity, and service to Filipinos and Americans alike. President Arroyo gave strong support to the global war on terrorism. The U.S. designated the Philippines as a Major Non-NATO Ally. Philippines joined a select group of countries that ratified all 12 UN counterterrorism conventions.

Investment List A

No foreign participation is allowed in: 40% foreign equity is allowed in:

Mass Media resources development and utilizationMost licensed professional services land ownershipCooperatives public utilitiesPrivate security agencies educational institutionsSmall-scale mining financing companiesFisheries constructionRice and corn farming

25% foreign equity is allowed in:

Recruitment agenciesLocally funded public works projects

30% foreign equity is allowed in:

Advertising

Investment List B

ExplosivesMunitionsArmamentsDangerous drugsMassage clinicsGamblingDomestic market enterprises with capital less than USD 500,000 provided enterprises don’t use advanced technologySmall-scale export enterprises with capital les than USD 500,000.

Management IssuesYou must rent or lease buildings you work in because you are not

allowed to own real property unless you are married to a Philippine citizen. Foreigners are allowed to lease or rent for up to 50 years with an option for another 25 though. There are no usury laws in the Philippines which can be hard to believe. There are security concerns in various parts of the country but they rarely influence a company’s decision to locate to the Philippines. If your business is in a more remote area of the Philippines you will need to take sensible precautions and be aware of the risks of terrorist activity. When investing in the Philippines you need to be aware that there are 115 companies in the Philippines offering insurance and you will be required to insure locally. Heavy penalties apply when Non-Admitted Insurance is obtained for the practice of taking insurance offshore to cover domestic risk.

Insurance companies in the Philippines normally follow international practice but you will need to read the fine print when getting insurance and be sure you understand that there are various mixtures of languages such as Spanish, Islamic, and Anglo/American codes. Another issue is that no foreign participation is allowed in mass media, most licensed professional services (e.g. accountants, lawyers, engineers), retail trade, cooperatives, private security agencies, small scale mining, fisheries, or rice and corn farming.

No business in the Philippines can be promoted and operated on a year by year contract, but may be promoted for a 5-10 year or more contract. Normally a lease includes nothing more than plain real estate and bare land. Investors have to pay all of the construction, electricity, and other amenities that need to be connected to properties. There are business taxes you would become subject to when Investing in a business in the Philippines as well. Some of these are Value added tax, Excise taxes, Local tax, Percentage tax, and other varying rates depending on what type of business you own in the Philippines.

ConclusionMission Love Seeds is considering Investing in the Philippines for a

few years now. After reviewing the economy statistics, There were 188 BOI-

approved investments in 2006 and that raised to 215 investments in 2007 which

is a pretty good increase of investments. This Presentation clearly shows the

strengths of the Philippines and it’s surrounding neighbors. Each country

complements one another and have had a strong relationship with one another

for a very long time and have a shared history. The Philippines and the United

States share values, democracy, freedom and we have been in all the wars

together in modern history such as, The World War, Second World War, Cold

War, Vietnam, Korea, and now the War on Terrorism.

There are always management issues to consider before investing in a

different country. After studying the marketplace and understanding the target

market , there are segmentation variables to look at before investing in the

Philippines such as Geographically , Demographically, Psycho graphically, and

Psycho graphically. Mission Love Seeds will consider all of their options before

investing in the Philippines. The most needed Physiological need in the

Philippines would be the Biological needs such as the need for oxygen, food,

water, and a relatively constant body temperature. (Pinto, J., 2008,

Fundamentals of Marketing course, American InterContinental University)

(Maslow’s Hierarchy of Needs, 2008)

Video from the Philippines

5000 children die a day from unsafe water. Mission Love Seeds Installed water tanks in a Dumpsite village in the Philippines so villagers can have clean water. The Dumpsite is a small village on the side of a mountain outside Antipolo. Click the video below to see the progress it made.

CitationsCentral Intelligence Agency, The World Fact book, (2008)

Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html

PricewaterhouseCoopers, (2004)

Retrieved from: http://www.philippine-embassy.de/bln/images/PTIC/How%20to%20Invest%20in%20the%20Phils%202004.pdf

Travel Document Systems, (1996-2008), Philippines Asia Economy ArticleRetrieved from: http://www.traveldocs.com/ph/economy.htm

U.S. Department of State, Bureau of East Asian and Pacific Affairs, (2008) Philippines Statistics

Retrieved from: http://www.state.gov/r/pa/ei/bgn/2794.htm

Department of Foreign Affairs and Trade, (2008), China’s Industrial Rise: East Asia’s Challenge

Retrieved from: http://www.dfat.gov.au/publications/chinas_rise/summary.html

Mission Love Seeds, Inc. (2008)Retrieved from: http://www.missionloveseeds.org/

Virola, R. National Statistical Coordination Board, (1997-2008)Retrieved from: http://www.nscb.gov.ph/sna/2008/2ndQ2008/2008qpr2.asp

Citations Philippines Country Studies, (2008)

Retrieved from: http://www.country-studies.com/philippines/relations-with-asian-neighbors.html

MCA Virtual Philippines Inc., (2002) Planning Your Investment Retrieved from:

http://www.outsourceit2philippines.com/articles-outsource/planning-outsource-investment.htm

Angeles City for You, (2008) Incentives and Restrictions Article Retrieved from: http://www.ac4you.com/investment/comparison.htm

Philippines Economy Watch, (2008), Philippines Central Bank Raises Rates Again In August Article

Retrieved from: http://philippineseconomy.blogspot.com/

Xinhua News Agency, (2003), Expert, Philippine economy to stumble over U.S. slowdown Retrieved from: http://news.xinhuanet.com/english/2008-03/19/content_7822991.htm

Business Week, (2008)Retrieved from: http://www.businessweek.com/adsections/2008/pdf/01282008.pdf

Philippine Daily Inquirer, (2008)Retrieved from: http://www.gsmcondo.com/pdf/February_01a_2008.pdf

ReferencesElectronic Resource:

https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html

Electronic Resource: http://www.philippine-embassy.de/bln/images/PTIC/How%20to%20Invest%20in%20the%20Phils%202004.pdf

Electronic Resource: http://www.traveldocs.com/ph/economy.htm

Electronic Resource: http://www.state.gov/r/pa/ei/bgn/2794.htm

Electronic Resource: http://www.dfat.gov.au/publications/chinas_rise/summary.html

Electronic Resource: http://www.missionloveseeds.org/

Electronic Resource: http://www.nscb.gov.ph/sna/2008/2ndQ2008/2008qpr2.asp

Electronic Resource: http://www.country-studies.com/philippines/relations-with-asian-neighbors.html

ReferencesElectronic Resource:

http://www.outsourceit2philippines.com/articles-outsource/planning-outsource-investment.htm

Electronic Resource: http://www.ac4you.com/investment/comparison.htm

Electronic Resource: http://philippineseconomy.blogspot.com/

Electronic Resource: http://news.xinhuanet.com/english/2008-03/19/content_7822991.htm

Electronic Resource: http://www.businessweek.com/adsections/2008/pdf/01282008.pdf

Electronic Resource: http://www.gsmcondo.com/pdf/February_01a_2008.pdf