Country Analysis

Philippines Telemedicine ProjectRichard Mike FarisRegis UniversityDecember 9, 2015

The purpose of this presentation is to analyze the political structure and politics, economic structure and the economy, imports and exports, and economic indicators in the Philippines for a telemedicine company.

Introduction

Telemedicine

Circa 1970’s telemedicine began as a doctor patient video communication method.

Technology advances including smartphones and tablets opens new opportunities.

The quality of imaging in some instances is sufficient for clinical diagnosis.

Developers and innovators team up and expand capabilities.

Competition and innovation drive down cost at same time broadband Internet expands.

The PhilippinesThe Philippines is an island nation with approximately 98

million inhabitants covering over 7,000 islands and spread around 3,000 square kilometers.

Many remote areas lack access to health care at this time. A goal of the Philippines is to attain universal health care for

all Filipinos.

The Telemedicine Company

A Southern California based company providing HIPAA, HITECH and EU-compliant mobile telemedicine platform.

The company is entrepreneurial with operations in the Americas, parts of Europe, and Africa.

The Philippines would extent the company footprint into Asia.

Political Structure and Politics

The Philippines has a long history of corruption and military coups.

The current constitution following Ferdinand Marcos, Sr. autocratic rule, is the beginning of a long road towards stability.

Multiple political structural similarities between the Philippines and the US.

The current popular president’s term is set to expire in May 2016 with four serious contenders leaving the political direction unknown.

The Bangsamoro Basic Law (BBL) is a major unresolved issue.

Economic Structure and Economy

The Philippines is a mixed economic with private freedoms, planning, and regulations.

In 1987, the government returned businesses, they owned and controlled, to the private sector.

Focus was reducing unemployment, poverty, and removing structures for the privileged.

Major economic sectors in the Philippines include agriculture, industry, and service (the fastest growing sector).

By 2013, the Philippines economy grew at the rate of 7.2%.

Imports, Exports, and GDP Mix Exports have grown year over year for the last six years with a

BOT deficit twice. EUI rates for macroeconomic stability as 7.8 on a scale of one to

ten. The GDP mix is about 11% agriculture, 31% industry, and 58% in

the service. Health care is a growing priority with government.

Economic Indicator Inflation average since 2002 is 4.3%. Interest Rates - current repo rate is 6% with reverse repo rate 4%. The National Economic and Development Authority focus is health

needs. Unemployment is running about 6.6% and underemployment

17.9%.

Economic Indicator continued

Basic literacy rate is 95.6% of 68 million citizens ten years of age and above.

The public school system is a mix of primary, secondary, and vocational.

Approximately ten percent of the adult population holds academic degrees.

A young workforce – a median age of 23.4 years Over half of the workforce is wage and salaried; 54% of the

workforce in the service sector; 5.1% are professionals.

Economic Indicator continued “Between January and November 2014, FDI flows reached USD 5.7

billion, which represents a more than 60% increase compared to 2013”.

The Bangko Sentral ng Pilipinas is the central bank - sets rates and monetary policy

Government is responsible for fiscal policy. Typhoon Yolanda in 2003 and World Financial Meltdown resulted

in widening of public debt. “Philippines's senior unsecured Foreign- and Local-Currency bonds

are also affirmed at 'BBB-' and 'BBB' respectively”.

Strengths - Weaknesses Strengths Strong economy with a focus on healthcare. High and increasing FDI inflows Young labor pool.

Weaknesses Political issues. Education levels could be more suitable. Existing poverty levels.

Conclusion Downside risks offset by government participation in a Public

Private Partnership. Ideal timing and need for telemedicine technology entry. One of the fastest growing economies in Southeast Asia. Moving forward establishes a major a footprint in Asia with special

notice in ASEAN. Additional business potential given 180,000 US citizens living in

country. Strong American business presence plus US products and services

are trusted.

https://www.youtube.com/watch?v=c6AT1FLM8yk