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Doing Business and Investing in the Philippines

Why do business and invest in the Philippines?

Strategic geographic location

The Philippines lies in the heart of Asia, today’s fastest growing economic region Its strategic location makes it a potential gateway to more than 550 million peoples in the Southeast Asian market It is less than two hours to Hong Kong and within four hours flying time from Southeast Asian capital cities and most major cities in Asia It lies astride major international shipping and air lanes, making it suitable for European businesses

Abundant mineral resources

The Philippines abounds in both metallic and non-metallic mineral resources. It is the biggest copper producer in Southeast Asia and among the top ten producer of gold in the world. Other metallic minerals found in the Philippines include cadmium, chromium, iron, manganese, mercury, molybdenum, nickel, silver, and zinc. Non-metallic mineral resources consist of asbestos, asphalt, coal, guano, gypsum, limestone, marble, petroleum, phosphate rock, salt, silica, and sulphur.

Quality human resources

The Philippines has a highly skilled and educated workforce that speaks very good English. English is widely spoken throughout the archipelago and is the official business language. It is the world’s third largest English-speaking country and produces close to 400,000 graduates a year, adding to an already large professional pool. Has a literacy rate of 94.6%, which is among the highest in the region. Its people are friendly and are familiar to the cultures of the East and the West, making the country an ideal second home to expatriates and providing a comfort level for most European business people.
Infrastructure

Has a well-developed network of communications and transportation infrastructure that links the three largest islands of Luzon, Visayas and Mindanao. These islands are highly accessible by land, water and cyberspace. Its specialized IT zones provide ready-to-occupy offices and production facilities, computer security and building monitoring systems, as well as complete office services.

Communications System and Facilities

The communications system provides international connectivity 24/7 with fibre optic cable as primary backbone network and satellite as backup. Manila and other regional business centres have a modern and efficient telephone service that can directly connect to anywhere in the world. There are several television stations providing local and international programming and hundreds of AM and FM stations, most of which use English as medium of communications. Cable TV is widely available throughout the country. International newspapers and magazines are available in bookshops, hotels, and other establishments.

Airports and Ports

There are six (6) international airports: the Ninoy Aquino International Airport in Manila is the country’s main international gateway, serving more than 30 airlines, which fly to different cities around the world. The others include Laoag, Subic and Clark in Luzon, Cebu in the Visayas and Davao in Mindanao There is also a number of international port cities including Manila, Batangas and Subic in Luzon; Cebu and Iloilo in the Visayas; and Davao in Mindanao. Container terminals are suited to handle cargo traffic at the highest level of efficiency.

Hospitable and Affordable Luxurious Lifestyle

Often voted as one of the most liveable countries in Asia for expatriates Increasingly becoming a favourite tourist destination, with its scenic spots, world-class business and recreation centres, and luxury holiday destinations at affordable prices With a global outlook and tolerance for varied cultures

Liberalized and Business-Friendly Economy

Government policy actively encourages foreign investments in practically all sectors of economy and provides incentives to investment activities that encourages national development Allows foreign ownership in almost all sectors and supports a Build-Operate-Transfer (BOT) investment scheme Provides incentive packages that include corporate income tax, reduced to its current 32%, while companies operating in special economic zones are subject only to 5% overall tax rates Multinationals with regional headquarters in the country are given incentives such as tax exemption and tax and duty-free importation of specific equipment and materials Deregulation of banking, insurance, shipping, telecommunications and power industries and privatization of government corporations Economic reforms emphasize regional growth, converting remote areas into business centres