The Philippines is one of the fastest growing economies in Asia, becoming more and more competitive each year since 2010. No longer the “sick man of Asia”, the country is projected by the World Bank (WB), International Monetary Fund (IMF) and Asian Development Bank (ADB) to maintain its growth momentum in the succeeding years.
Foreign direct investments inflow into the Philippines has risen significantly over the years, which reflects the renewed investors’ confidence in the Philippine economy. The robust infrastructure, tariff reductions, attractive investment incentives, streamlined business policies and sustained political and economic reforms are just some of the factors that contribute to the ease of doing business in the Philippines.
English-speaking High-skilled Manpower
The Filipino workforce has a unique edge over any other Asian country in terms of labour quality. With a literacy rate of 94.6%, the Philippines has a ready and steady supply of highly-skilled and trainable labour to accommodate any underlying business need - including professional, technical, managerial and skilled workers. The main competitive advantage of the Philippine workforce is the widespread proficiency in English. English is taught in all schools, making the Philippines the third largest English-speaking country in the world.
Strategic Business Location
The Philippines, located in the heart of Asia, has emerged as an investment hub and a favourable base for Asia-Pacific expansion programs. It is located within an average 4 hours flying time from major capitals of the region and is a critical entry point to over 500 million people in the ASEAN Market.
Wide incentives are available to foreign investment that significantly contributes to national industrialization and socio-economic development, and in export-oriented activities. Income tax holidays of 3 to 8 years are a central feature in most incentive packages. Enterprises locating in special economic zones may be entitled to a special 5% rate of tax on their gross income (sales less direct costs) in lieu of all other national and local taxes.
PwC Philippines www.pwc.com/ph/
Philippine Department of Trade and Industry www.dti.gov.ph
Board of Investments www.investphilippines.gov.ph