Doing Business in the Philippines

Opportunities:

1. Philippines is Rich in Natural Resources

Philippines is truly blessed with diverse natural resources-from land to marine to mineral resources. It also has the biggest
copper production in Southeast Asia and among the top ten producer of gold in the Philippines (profitableventure.com, 2019).
Some of these natural resources can be the basis for small scale business opportunities for the landowners in the Philippines.
Starting a natural resources business or enterprise begins with inventorying resources on your land to learn what is available, for
example: wildlife habitat, tree species and condition, ponds or lakes, soils and topography, existing hazards, nearby land uses,
machinery, buildings and equipment. Those enterprises can be very simple, providing personal benefit, or significant enough to
generate financial gain. Natural resources businesses include activities such as small-scale maple syrup, mushroom production, trail
riding, fee hunting and fishing, rural bed and breakfasts, wildlife viewing and more.

2. Philippines has Powerful Workforce

The Filipino workforce is among the most compelling advantages that the Philippines has over any other Asian country. With
higher education priority, the literacy rate in the country is 96.6% – among the highest (profitableventure.com, 2019). This talent
powerhouse has been making a massive contribution to the current global skills’ shortage and helping other countries acquire
access to a young, skilled labor pool to compensate for their aging workforce population. The Philippines’ largest export is its people,
and it contributes to the global labor-export market with the biggest percentage of tertiary school graduates
(doingbusinessinthephilippines.com, 2019).

3. Philippines has Low-Cost Business Start-up

There's more to a business than furnishings and office space. Especially in the early stages, startup costs require careful
planning and meticulous accounting. The cost of doing business in the Philippines is low, as wages are typically lower than fifth of
that of the United States. The electricity, local communication, and housing cost are 50% lower compared to the US rates. That is
why foreign companies are now outsourcing, programming and business processes to the Philippines (profitableventure.com,
2019).

Risks:

1. Human Rights Risk

The Philippines has ratified and incorporated into domestic law most UN human rights conventions and treaties. Labour rights
are also laid out in Philippine legislation, but there are particular concerns about the freedom to exercise these rights especially in
Special Economic Zones. The 2016 US Department of State Country Reports on human rights practices cites the following as the
most significant business related human rights abuses in the Philippines: extractive industries, power generation, agribusiness, real
estate and tourism. One of the main concerns among investors and business groups is peace and order, particularly in the
Mindanao region. The 2014 Comprehensive Agreement on the Bangsamoro (CAB) signed between the Philippine government and
the Moro Islamic Liberation Front (MILF) provides some hope for peace in the region that could unlock the potential for longer term
economic opportunities in Mindanao (gov.uk, 2017).
2. Extreme Weather Events

From a business perspective, weather can have a significant impact on the bottom line. And as with most patterns of this type, bad
times are usually balanced out with good times. But in order to “weather the storm” during those bad times, business owners need to be
prepared for it. And this doesn't just go for seasonal businesses, either. Businesses of all kinds can be affected, even if indirectly, by both
good and bad weather. The key is to know how to be prepared by these.

3. Unmanageable Inflation

The first thing to take note of is that inflation isn't good or bad; that's a matter of perspective. For some businesses, inflation
could be a bad thing, forcing businesses to raise their prices and contributing to a loss in customers. For others, it could be a benefit,
spurring activity in their industry that would otherwise occur elsewhere if prices were lower. Moreover, the level of inflation
matters; a little bit might be desirable, while too much could grind consumer spending to a halt and send the economy into a
tailspin.