Opportunities in the Philippines: Why Invest in the ... · Enabling Business, Empowering Consumers

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Opportunities in the

Philippines: Why Invest

in the Philippines

Secretary Ramon M. Lopez

Enabling Business,

Empowering Consumerswww.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines

The Philippines: Bright Spot in AsiaFastest Growing Economy Among Select Asian Economies

6.7

5.0

6.86.2

2.3

3.5

1.8

4.7

China Indonesia Philippines Vietnam

FY 2016 GDP Growth Rate & Inflation Rate

GDP Growth Rate Inflation Rate

PH GDP Growth Rates (2011 – 2016)

2011

3.7%

2012

6.7%

2013

7.1%

2014

6.2%

2015

5.9%

2016

6.8%

FY 2016 Growth Drivers

Manufacturing

7.0%

Trade

7.3%

Real Estate, Renting & Business Activities

9.1%

2016 GDP,

up by 6.8%

Industry

8.0%

Services

7.5%

Agriculture

-1.3%

3 Major Sectors

Enabling Business,


19th

of the Top

20 Foreign

Direct

Investment

Destinations

Investment Grade

The Philippines: Bright Spot in AsiaGrowing, Rising, Stable Philippines

PH

From 2011 to 2016, the Philippines

posted some of the biggest

improvements globally in the

Heritage Foundation Economic

Freedom Index (+45), World

Economic Forum Global

Competitiveness Report (+18), and

International Finance Corporation

Ease of Doing Business Report

(+31).

Enabling Business,


Net Foreign Direct Investments

2011-2016 (Jan-Oct)

The Philippines: Bright Spot in AsiaJan-Oct 2016 FDI inflows up by 22%, reaching US$6.2 B

1 2

Top Industry/Sectors, Jan-Oct 2016

3 4 5

US$2.0 B US$3.2 B

US$3.7 B

US$5.7 B US$5.8 B US$6.2 B

2011 2012 2013 2014 2015 Jan-Oct2016

Insurance ActivitiesManufacturing Real Estate

ActivitiesConstruction Accommodation

and Food Service

Activities

Enabling Business,


Top FDI Sources

(Jan-Oct 2016)

The Philippines: Bright Spot in AsiaJan-Oct 2016 FDI inflows up by 22%, reaching US$6.2 B

1

2

3

4 5

1. Japan: US$924 M

2. Singapore: US$170 M

5. Spain: US$76 M3. Taiwan: US$134 M

4. USA: US$85 M

Enabling Business,


BOI-Approved Investments, FY 2011 – 2016

The Philippines: Bright Spot in AsiaUS$9.3 B approved projects in 2016, up by 21%

2016 TOP SECTORS

1. Electricity, Gas, Steam & Air

Conditioning Supply

2. Real Estate Activities

3. Construction

4. Manufacturing

5. Transportation & Storage

2016 TOP SOURCES

1. Australia

2. Singapore

3. Netherlands

4. Japan

5. South Korea

US$8.5 B US$8.5 B

US$11.0 B

US$8.0 B US$8.1 B

US$9.3 B

2011 2012 2013 2014 2015 2016

Enabling Business,


Land Management6

President Duterte Administration10-Point Socioeconomic Agenda

Competitiveness3

Rural & Value Chain

Development5

Macroeconomic

Policies1

Infrastructure4

Human Capital

Development7

Innovation & Creative

Capacity8

Social Protection9

Tax Reform2

Responsible Parenthood

& RH Law10

Enabling Business,


Manufacturing

• Electronic manufacturing services

• Automotive and auto parts

• Aerospace parts

• Chemicals

• Shipbuilding

• Tool and die

• Furniture and garments

Agribusiness

• Cacao, coffee, mangoes,

bananas, coconuts,

rubber, bamboo, fruits

and nuts, palm oil

• Other high value crops

TOP PRIORITY AREAS

Services

• IT-BPM (non-voice services BPO

and KPO segments in medical,

financial and legal services;

game development; engineering

design in manufacturing;

software development, and

shared services

• Construction

• NEW INDUSTRIAL POLICY

• BOLDER TRADE POLICY

• INTENSE INVESTMENT PROMOTION

• SKILLS TRAINING & HUMAN RESOURCE DEVELOPMENT

• INNOVATION & R&D

• MODERN SME POLICY

Infrastructure & Logistics

• Power

• Transport and logistics Tourism

Comprehensive National Industrial

Strategy (CNIS)

Enabling Business,


Mindset

Mastery

Mentoring

Market Access

Money AccessMachine

Models of Negosyo

• Negosyo Centers

• SMERA

• Negosyo Center Business Coaching

• Innovation Center

• Business Development Support Strike Team

• Kapatid Program (Mentor Me)

• Go Lokal!

• Government Procurement

• Inclusive Business

• Link to MFI

• Pondo para sa Pagbabago at Pagasenso P3

• Shared Service Facility (SSF)

• Franchising

• Distributorship

• Direct Selling

• Skills Training (PHIL BAKING)

MSMEs99.6%

0.4% Others

DTI’s 7Ms for MSME Development

Enabling Business,


Infrastructure Development

Opportunities for Investors and

Business

361 Economic Zones and IPAs

73 Manufacturing EcoZones

246 IT Parks and Centers

21 Agro-Industrial EcoZones

19 Tourism EcoZones

2 Medical Tourism Zones

PPP and other Infrastructure Projects

(in the pipeline)

NAIA Expressway

LRT Line 1 Cavite Extension

Daang Hari-SLEX Link Road

Southwest Integrated Transport System (ITS)

Cavite-Laguna Expressway

Bulacan Bulk Water Supply

Other Infrastructure Projects

under implementation

MRT Line 7

Metro Manila Skyway Stage 3

Projects under Procurement

New Bohol Airport Operations, Maintenance

and Development

NLEX-SLEX Connector Road

Enabling Business,


Strategic Location


Business

JapanTokyo

South KoreaSeoul

Shanghai

C h i n a

TaiwanTaipei

Hong Kong

ThailandBangkok

MalaysiaKuala Lumpur

Singapore

IndonesiaJakarta

3.25 hrs.

2 hrs.

3 hrs.

Enabling Business,


LAOS

THAILAND

SINGAPORE

BRUNEI

MYANMAR

VIETNAM

CAMBODIA

MALAYSIA

CURRENT FREE TRADE ROUTES TO THE PHILIPPINES

Market Size• PH - 101 M• ASEAN - 629 M• ASEAN+6 - 3.5 B (1/2 of World Population)

- $22.4 T (1/3 of World Economy)

AUSTRALIA

NEW ZEALAND

INDIA

JAPAN

CHINAKOREA

INDONESIA

PHILIPPINES


Business

Enabling Business,


PH in Demographic Sweet Spot

Young, employed, more prosperous consumer-base

for many more years


Business

PHILIPPINES, 23.1

THAILAND, 34.7

VIET NAM, 28.2

JAPAN, 45.4

UAE, 30.2

USA, 37.1

years old

23.1

Filipinos are younger compared to the rest of the world.

The median age in the Philippines is 23.1 years old.

This is equivalent to the age of someone who recently graduated from college.

Enabling Business,


Human Capital Advantage


Business

English SpeakingHonest with

Integrity Creative

Rich Talent Pool

Enabling Business,


Fastest growing economyRising, stable economy (Improved competitiveness and investment grade)

Powered by strategic investment flows

Clear 10+1 economic agenda (Stable macroeconomic policies and infrastructure development)

Comprehensive National Industrial Strategy (CNIS)

Strategic locationExpanded market size (Gateway to ASEAN and ASEAN+6 markets)

Demographic sweet spot Human capital advantage

In Summary – Why Consider the

Philippines

Q1 2017+34.5%

Business Confidence

+18.8%

Consumer Confidence

www.facebook.com/DTI.Philippines www.twitter.com/DTIPhilippines www.Instagram.com/DTI.philippines

Thank you.

F O L L O W U Son your favorite social media accounts!

@DTI.Philippines

@DTIPhilippines

@DTI.Philippines

Arigatou Gozaimasu!

Date post:	19-Sep-2019
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Opportunities in the Philippines: Why Invest in the ... · Enabling Business, Empowering Consumers

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