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ABUSINESSANDINVESTMENTENVIRONMENTINTRODUCTION
Phili!ine
QUiCK
lACIs
susiness
Climate
Text
Text
(1) Strong Stock Market
Business Climate
QUiCK
lACIs
susiness
Climate
(2) Stable and Resilient Economic Growth
Business Climate
Business Climate
(3) Continuous Inow of OFW Remittances
2011OlvremittancescrossedtheUss20sillionLarriervithull
yearrecordoUss20.12sillion
2012:Uss21.!9sillion,.!higherthat2011record
Remittance drev strength rom demand or skilled and proessional
lilipinos aLroad, along vith Letter data capture through Lanks and
inancialinstitutions
Business Climate
(4) Steady Investment Flows
Business Climate
(5) Robust Domestic Financial Sector Coupled with
Credit Growth
Outstandingloansouni\ersalandcommercialLanksamountedto
I!.10IrillionLytheendo2012,higheste\erinLankinghistory.
AsoendOct2012,non-perormingloansratioouni\ersaland
commercialLanksisat2.0percentrelectinganimpro\ementromthe
end2011`s2.4percent.
A\erageLanklendingrate:.|DecemLer2012)
Business Climate
(6) Efcient Revenue Collection
Ihenationalgo\ernmentiscaldeicitortheperiod1an-Xo\2012
amountedtoI12.!sillion.
Ihenationalgo\ernmentdeicitnovstandsat1.4oGDI|Q1-Q!
2012),LetterthantheiMlstandardo2.0or2012andputs201!
Ludgetontrack
Re\enueperormanceortheperiod1an-Xo\2012vas1!higher
comparedtothesameperiodin2011.
Business Climate
(7) Improving Global Competitiveness Ranking
Business Climate
(8) Strengthened Governance & Anti-Corruption Measures
Business Climate
(9) Dynamic People
GETTING THE WORLDS
ATTENTION
CXsC:IhilippinesisAsia`sXevDarlingo
in\estors|August!0,2012)
XevYorkIimes:IheIhilippinesXevestsright
spotinAsia|August2,2012)
Deutschesank:Ihilippines-strongestAsian
Bconomy|sloomLergsusinessveek|Aug.9,2012)
standard8Ioor`s:IhilippineBconomy,arare
Lrightspot|1une4,siXGAIORB-LasedDssItd.
againupgradedits2012grossdomesticproduct|GDI)
orecastortheIhilippines,Lutloveredtheoutlook
ornetyear`seconomicepansion.
2012vealthReport:IheIhilippinesistheth
astestgrovingeconomyinthevorld
Recent Developments: RATINGS UPGRADE
Fitch Ratings upgrades to BBB- (Investment Grade)!
Standard & Poor upgrades to BBB- (Investment Grade)!
Japan Credit Rating Agency Ltd. upgrades to BBB-
(Investment Grade)!
Recent Developments:
GROWTH FORECAST UPGRADE
International Monetary Fund upgrades PH growth forecast!
Barclays upgrades PH growth forecast from 5.9 to 6.3% (May, 2013)!
UBS Investment Bank upgrades growth forecast to 6.3% (April, 2013)!
UN Economic and Social Commission for Asia and the Pacic
upgrades growth forecast from 5 to 6.2% !
First Metro Investment Group forecasts 7.5% economic growth from
the Philippines!
According to National Economic and Development Authority (NEDA),
Philippine economy outpaced growth of other Southeast Asian countries.!
Recent Developments:
IMPROVED INVESTOR CONFIDENCE
Philippines is Asias rising tiger according to World Bank!
Philippines from International Monetary Fund borrower to lender!
Philippine Governments initiatives to encourage investors (May, 2013)!
! -Securities and Exchange Commission lifts 40% cap on foreign
ownership!
-Reduced debt from 68% of GDP in 2003 to 41% in 2012!
Goldman Sachs identifies Philippines as successor to BRICS
COMIBIiIiVB
ADVAXIAGBs
(100,000 IT / Computer
Science Graduates, 111,000
Business Graduates and
73,000 Medical & Allied/
Natural Sciences Graduates)
9 International Airports
20 Domestic Airports
completely deregulated
Agriculture/ Agri-
business and Fishery
Creative Industries/
Knowledge-Based
Services
Shipbuilding
Mass Housing
Energy/ Renewable
Energy
Infrastructure
Research and Development
Green Projects
Motor Vehicles
Tourism Investments
Strategic Projects
Hospital /Medical Services
Disaster Prevention,
Mitigation and Recovery
Projects
ITEnabled&BusinessSupportServices
7
Leading the Outsourcing Evolution
Established leader for voice services
30% share of U.S. and 15-20% of APAC
$5.70 billion revenues in 2010, higher than
Indias projected $5.58 billion
VOICE
Credible 10% share that is rapidly growing
Large industry-specific opportunity (e.g.
BFSI, healthcare, media, HR, KPO
Evolving value-propositions - tools, process
improvement, end-to-end accountability
Non-voice
Highly penetrated applications market
Emerging opportunities to penetrate
ASEAN, innovate for the U.S.
Third largest pool of engineers after India
and China in APAC
IT/ESO
Source: Everest analysis
Philippine IT-BPO industry size
20062009; US$ billion
3.2
4.8
6.1
7.1
8.9
11.0
2006 2007 2008 2009 2010 2011
# FTEs
(~000)
240 300 370 440 530
Global
share
1
5% 6% 6% 7% 8%
FTEs = full-time employees, YoY = year on year
1 Philippines IT-BPO market as percentage of global offshore
services market, in revenue terms
Sources: BPAP; Everest analysis
Industry Growth Trajectory
~50% ~26% ~16% ~25%
Courtesy of the Business Processing Association of the Philippines
~24%
638
8%
IT-Enabled&BusinessSupportServices
Diversication of the Industry
10
Proprietary & Confidential. 2010. Everest Global and Outsource2Philippines.
Signs of Diversification
Philippine IT-BPO service segments
US$ billion
Philippine IT-BPO source markets
US$ billion
Note: 2006 Split per ICT Survey of IT and ITES; 2010 estimates from Everest-O2P survey
Sources: BPAP; Everest-O2P survey
Voice BPO
Non Voice
BPO
IT/ESO
3.2 8.9 100% =
U.S.
UK/EU
APAC
3.2 8.9 100% =
Domestic
Energy&Renewables
Indispensable roleprivate
sector as partner in
development
Public-Private Partnership: Eligible
Projects
TourismInvestments
*Tieza Law - provides incentives that facilitate investments
O$er Key Sectors
Electronics
CHANGING FACE OF CHANGING FACE OF
EXPORTS EXPORTS
Agro-Based
49%
Garments - 7%
Other
Manufactured
Products 10%
Forest Products - 10%
Others - 2%
Garments and Textiles - 6%
Machinery and Transport - 4.4%
Wearables - 0.16%
Food - 2.9%
Motor Vehicles and Parts - 1.74%
Home Furnishings - 1%
Marine Products - 1%
Giftwares - 0.45%
Construction Materials - 0.49%
Organic Products - 0.18%
Mineral Products - 2.1%
Others - 13%
FROM COCONUT COCONUT CHIPS CHIPS
TO MICROCHIPS
Mineral Products -
18%
ELECTRONICS ELECTRONICS - - 3% 3%
1970 1970
ELECTRONICS ELECTRONICS --
61% 61%
Garments and Textiles - 6% Others - 13%
2010 2010
Sources : DTI/NSO
SEIPI
Shipbuilding
-Shipbuilding(design,construction,
outfitting&launchinganytypeof
ship).Shipbuildinggiants,Japanese
TsuneishiandKoreanHanjinare
successfullyoperatinginthe
Philippines.Thereisroomformore.
Shiprepairconversion,overhaul,
alteration,modificationorrepairof
hull,machinery,equipment,outfitsand
componentsofanytypeofship
Shipyardoperations
Shipping
-Domesticshipping-Overseasshipping
Sea-faring/Manning
www.investphilippines.org
PhilippineBizSF facebook.com/pticsv
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%ank y&!
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