Philippines

A BUSINESS AND INVESTMENT environment INTRODUCTION

Philippines

Business Climate
(1) Strong Stock Market

Text Text

Business Climate
(2) Stable and Resilient Economic Growth

Business Climate
(3) Continuous Inflow of OFW Remittances

Business Climate
(4) Steady Investment Flows

Business Climate
(5) Robust Domestic Financial Sector Coupled with Credit Growth

Business Climate
(6) Efficient Revenue Collection

Business Climate
(7) Improving Global Competitiveness Ranking

Business Climate
(8) Strengthened Governance & Anti-Corruption Measures

Business Climate
(9) Dynamic People

GETTING THE WORLDS ATTENTION

64.1% labor force participation rate

(2013) with 92% employment rate

World Class Human Resource

95.4% Literacy rate --one of the highest literacy rates in the world (ADB,
2008)

70% fluency in English 500,000 college graduates per year (100,000 IT / Computer Science Graduates,

111,000 Business Graduates and 73,000 Medical & Allied/ Natural Sciences Graduates)

Fluent in English The Philippines is the worlds third largest english

speaking nation.

Exported and highly sought worldwide

PHILIPPINES: WINNER OFFSHORING DESTINATION OF THE YEAR 2010, 2009 AND 2007

Established Infrastructure & Telecommunications Networks

EXTENSIVE INFRASTRUCTURE EXPANSION & SUPPORT 9 International Airports 20 Domestic Airports 3 Railway lines in Metro Manila 12 Roll on/Roll off ports/ marine highways Newly constructed (major) expressways established telecommunications systems and networks completely deregulated International connectivity and expanding multimedia Infrastructure high volume capacity for voice

 The Philippines borders Asia Mainland and the

Pacific Ocean.

Strategic Location

Convenient Access to the 550 Million-strong

ASEAN Market

Reachable within 4 hours by plane from other key

Asian Cities

Regional Hubs in neighbouring ports and countries

such as Singapore, Hongkong and Tokyo provide numerous travel options.

Flying Times from key Asian cities: ____________________________ __ Tokyo - 4 hours Seoul - 3.5 hours Shanghai - 3.25 hours Singapore - 3 hours Hongkong - 2 hours

Unmatched Government Incentives & Support 4 to 6 years Income Tax Holiday Special 5% tax rate on gross income after
the lapse of the Income Tax Holiday for Economic and Special Zone locators

Tax and duty exemption and

Zero Duty on qualified imported capital equipment

Exemption from 12% V.A.T on allowable

local purchase of goods and services

Unrestricted use of consigned equipment Employment of foreign nationals Working Visas, Special Investors
Resident Visas, Retirees Visas

Manufacturing 63 IT Parks 127 Tourism 9 Medical Tourism Parks/ Centers 2 Agro Industrial Centers 6

Investment Opportunities

Priority Sectors: Investment Priorities Plan Research and 2012 Agriculture/ Agribusiness and Fishery

Development

Creative Industries/KnowledgeBased Services

Green Projects Motor Vehicles

Shipbuilding

Tourism Investments
Mass Housing

Strategic Projects
Iron and Steel

Hospital /Medical Services

Energy/ Renewable Energy

Infrastructure

Disaster Prevention, Mitigation and Recovery Projects

IT Enabled & Business Support Services

IT-Enabled & Business Support Services Diversification of the Industry

Energy & Renewables

Bio-Fuels (Bio-Diesel & Bio-Ethanol) - The government targets
to implement a 1% CME blend with diesel fuel for vehicles in 2007, to reach 2% in 2009; and 5% ethanol blend with gasoline fuel for vehicles within 2007-2009, to reach 10% in 2011.

Hydropower - Indicative Hydropower potentials are currently at

2,400 MW

Geothermal - The Philippines is 2nd only to the US in terms of

Geothermal Energy potential reserves. With only 1,931 MW installed out of 2,047 MW proven geothermal reserves and 4,790 MW potential reserves, there are obviously plenty of opportunities for expansion and private sector involvement.

Wind Energy - Comprised of 7,107 Islands, the Philippines has

maximum potential for wind energy generation. 16 wind power sites were offered to private investors during the 1st wind contracting round with a potential capacity of 345 MW.

Solar Energy - Opportunities abound in Micro and Small-sized

Solar Energy Plants from 1MW-5W.

Compressed Natural Gas - Minimum investment requirements

of about $4.0B between 2006 2014
*Feed-In Tariff Rates make Renewable Energy Generation now more attractive for investors

Resource Extraction & Sustainable Mining Located in the Ring of Fire

5th most mineralized country in the
world (2nd in Gold, 4th in Copper, 5th in Nickel, 6th in Chromite)

Established reserves of 13 known

metallic and 29 non- metallic minerals (Mines & Geosciences Bureau)

RP has 9 million hectares of

mineralized land

Only 420,000 hectares have mining permits. 8.6 million hectares still awaiting for the

Public-Private Partnership
A Social Contract with the
Filipino People

All transactions are

transparent & above board

Consultative view on private

sector areas of concern

Protection of public interest Private Sector, an important

role in nation-building

Indispensable roleprivate
sector as partner in development

Public-Private Partnership: Eligible Projects

Tourism Investments

*Tieza Law - provides incentives that facilitate investments

Other Key Sectors

Electronics
Electronics make up 61% of Total Philippine Merchandise Exports Electronics exports was at US$6.75 Billion in 2011, an increase of 5.55%
from previous years US$6.40 Billion

Economy less dependent on Electronics Exports 2011: Electronics exports decreased by 23.7% due to Global Down-turn,
but overall decrease in exports was only 6.9% at US$47.8 Billion.

WHO ARE WITH US

IN ELECTRONICS?

Profile of Electronics Firms

Ship-Building

Shipbuilding

- Shipbuilding (design, construction, outfitting & launching any type of ship). Shipbuilding giants, Japanese Tsuneishi and Korean Hanjin are successfully operating in the Philippines. There is room for more.

Ship repair conversion, overhaul,

alteration, modification or repair of hull, machinery, equipment, outfits and components of any type of ship

Shipyard operations Shipping

- Domestic shipping - Overseas shipping

Sea-faring/ Manning

CONTACT US

www.investphilippines.org

PhilippineBizSF

facebook.com/pticsv

HE PHILIPPINE TRADE AND INVESTMENT CENTER IN SILICON VALLE FOR THE US NORTHWEST AND WESTERN CANADA

Thank you!
Maraming Salamat