As the government mobilizes its forces to streamline operations, the country makes every effort to maintain cordial bilateral ties with other countries and be a contributing member of the world community.
One task on hand is to shore up the economy. Despite the economic turmoil that has engulfed major economies in the world, the Philippine economy has remained strong. It has continued to shine brighter than other economies in the Asia-Pacific region due to structural reforms that the government has undertaken, with the GDP growth rate for 2010 recorded at 7.3 percent.
At present, the government is determined to sustain the sterling economic performance as it continues to further liberalize economic regulations and policies. Manila’s thrust is to transform the Philippines into a better place for doing business where investors will enjoy immense confidence in the long term.
Why invest in the Philippines?
Reasons for investing in world markets are varied. These range from better location, to people's working styles, to government business regulations, taxes and others. The Philippines has a competitive advantage over other countries.
These include strategic location being the gateway to Asia and the Pacific, educated and highly-trained labor force, liberal business regulations and economic policies, rich and abundant natural resources, reasonable cost of doing business, continued peace and order, and effective government and private sector partnership for investments.
There is a long list of opportunities awaiting investors in the Philippines. The government is promulgating annually investment priorities plan. Philippine priority investment projects are in export-oriented industries, parts and components (electronics, automotive, construction materials, among others), infrastructure, agriculture and agribusiness, mining, tourism, information technology and support services, among other things.
The Philippines is considered one of the best countries in Asia for expatriate living. It is highly regarded for its openness to varied cultures and availability of a wide array of quality, round-the-clock entertainment.
Foreigners enjoy accessible and affordable amenities — business centers, housing, schools, hospitals, shopping malls, hotels and restaurants, beach resorts, and other recreation centers.
Companies intending to position themselves in east Asia take a close look at the Philippines for its strategic location. The Philippines lies at the heart of two great seas of commerce — the Pacific Ocean and the South China Sea — both at a crossroads of Eastern and Western business, trade and culture.
Global companies organizing offshore service operations choose the Philippines for its abundant supply of highly-trained, skilled and English-speaking labor force. Even as the Philippines continues to export labor, its human resources sector has earned the reputation of world-class skills and capabilities and international competitiveness in terms of quality, cost and availability. Filipinos' proficiency has set them apart from other nationalities, and has contributed to the county's attractiveness as investment destination.
The World Competitiveness Yearbook 2000, a study of 47 industrialized and emerging economies, revealed that the Philippines is the most competitive in Asia when it comes to skilled labor. The study also disclosed that the Philippines is third after the US and Chile in availability of competent senior managers.
Information technology and engineering companies expanding their operation in Asia invariably choose the Philippines for design capabilities of Filipino information and communications technology (ICT) professionals and engineers. Quality human resources, improvements in the telecommunications infrastructure, and an established policy and regulatory framework make ICT investments in the Philippines an increasingly attractive proposition.
The ICT sector in the Philippines was greatly enhanced by the passage of the Electronic Commerce Act (ECA) in the year 2000. The law firms convey the government's seriousness in establishing the policy and legislative environment for the development of ICT and the conduct of e-commerce in the Philippines in particular.
The country's tax and fiscal incentives for companies located in free port areas and ecozones include repatriation of investments, remittance of earnings, access to foreign loans and contracts, freedom from expropriation and nonrequisition of investments. Up to 100 percent ownership is allowed in priority industries. Telecommunications, shipping, oil, banking and insurance industries have been deregulated. Simplified assistance and facilitates investment procedures through Express Lanes and One-Stop-Action/ Processing Centers are available.
Clearly, there is a rich field of business opportunities in the country. The Philippines is committed to helping businesses develop and prosper in order to encourage more investors. This is the right time for investors to take advantage of the opportunities the country is offering.
Once the laggard in the Association of Southeast Asian Nations (ASEAN) mainly due to selfish political conflicts, the Philippines seems to have no way to go but up in economic expansion and steady development. With no more life-and-death political pressures for survival, President Benigno “Noynoy” S. Aquino III hopefully will vigorously set the national direction of focusing all energies and resources on enhancing Philippine global competitiveness, inviting more foreign investors to put their money in the country (beyond fast-buck stock market speculation), and really strengthen economic reforms.
The Public-Private Partnership program is the current administration's answer to its social contract with the Filipino people concerning the creation of more jobs and new opportunities to achieve full employment and significantly reduce poverty. The government recognizes the vital role of the private sector as the main engine of growth and development. Under the PPP program, pertinent incentives will be provided to stimulate private resources for the purpose of financing the construction, operation and maintenance of infrastructure and development projects normally undertaken by the government.
Private sector investors will be selected through open competition under fair and transparent terms. All interested investors will be given a level playing field with reasonable returns and appropriate sharing of risks without compromising the protection of public interests. Through this program, end-users will be provided with adequate, self-sufficient and reliable and reasonably-priced infrastructure services.
