Privatization and liberalization initiatives in the electricity, water, and waste sectors are in place. Infrastructure projects are slowly being opened for private sector funding.

Sectors with growing economic and financial trends and/or positive outlook include:

• Agro-industry
• BRP / IT Services
• Electronics and semiconductors
• Energy
• Logistics
• Mining
• Shipbuilding
• Tourism

The Economy:

• Agriculture / agribusiness / fishery products include rice, coconut products, sugar, corn, livestock, bananas, pineapple products, aquaculture and mangoes

• Industrial production are segmented to the following:

1. Processing and assembly operations are spread over such items as food, beverages, tobacco, rubber products, textiles, clothing and footwear, paints, plywood and veneer, paper and its products.
2. Heavy industries are dominated by production of cement, glass, industrial chemicals, fertilizers, iron, and steel and refined petroleum products.
3. Shipments in semiconductors and electric microcircuit form a lion’s share of merchandise export revenues.

• BPO (voice and non-voice) is poised to capture 10% of total global addressable market.

• Mining development and utilization activities are viable as the country is endowed with mineral and thermal energy resources.

Workforce:

• Overall, the Philippines has highly competitive and skilled workers
• Filipinos are highly trainable, adept at technology, and possess high learning curves
• The country has one of the highest literacy rates in the world at 94.6
• There are about 500,000 graduates yearly across various disciplines
• Labor standards and employment relations are held with utmost regard with stable employment-oriented policies
• Labor costs vary throughout the Philippines, depending on location, skills required, supply base, education attainment, working hours, and other factors.

Summary of Investment Regime:

• Registered enterprises may qualify for an income tax holiday ranging from 4-6 years
• Tax credit for taxes and duties on raw materials
• Deductions of labor expenses from taxable incomes
• Access to bonded manufacturing / trading warehouse schemes
• Exemption from taxes and duties on imported supplies and spare parts for consigned equipment, and
• Exemption from wharfage dues and any export tax, duty free, and impost.

Important local regulations:

• Foreigners are not allowed to own land in the Philippines as the Philippine Constitution limits ownership of land to Filipino citizens or companies that are at least 60% owned by Filipinos.
• Foreign investors can viably lease commercial lands in the Philippines for a maximum of 75 years (Republic Act 7652 – 1993)
• Intellectual property is protected under the Intellectual Property Code of 1997 (RA 8293)

Trade and Industry: 

• Major trading partners are the US, Japan, EU, China, Singapore, Taiwan and Hong Kong.
• Major investment sources are from the US, Japan, Hong Kong, Singapore, and the EU (UK, Germany and Netherlands)
• Main commodity exports are electrical machinery, clothing, food and live animals, chemicals and forest products.
• Services are gaining ground through recent years such as, medical tourism, transport and logistics, BPOs in finance and accounting, customer care relations.

Visas

Saudi and GCC nationals do not need a visa for a visit of 21 days and less.

Economic Zones and Freeports

• Authority of the Freeport Area of Bataan 
• Aurora Special Economic Zone Authority 
• Bases Conversion and Development Authority 
• Clark Development Corporation 
• Cagayan Economic Zone Authority 
• Philippine Economic Zone Authority 
• PHIVIDEC Industrial Authority 
• Philippine Retirement Authority 
• Regional Board of Investments – ARMM 
• Subic Bay Metropolitan Authority 
• Zamboanga Economic Zone Authority

Public-Private Partnership Program 

We realize the importance and potentials of the private sector’s role in nation-building, and we have made the Public-Private Partnership Program as the centerpiece of our economic program.

The PPP is a contractual agreement between the government and the private sector that paves the way for an efficient delivery of public infrastructure and public services. It is founded on the social contract of President Aquino with the Filipino people, which serves as the government’s blueprint for success. Under the PPP Program, the government aims to tap participation from foreign and local investors to fund large-scale infrastructure projects and public services that shall benefit the country in the long run.

The PPP Program will focus on infrastructure support facilities for tourism, agriculture, social services, and growth centers. It will provide incentives to stimulate private resources; ensure competition, fairness and transparency; protect public interest; provide necessary assistance; and fast-track the approval of projects thus, improving the country’s business and social landscape.

List of projects (insert)

Better business initiatives:

As part of the President’s policy to create a conducive and sound business atmosphere for investors in the Philippines, the government is continuously improving its services to level the investment playing field. New measures were undertaken to lower the cost of doing business in the country and provide equal opportunities among local and foreign investors.

Among the key points that will help improves the country’s global competitiveness in terms of investments are to create a favorable business environment, streamline bureaucratic procedures and foster transparency, and implement improvements on the issuance of business permits and licenses. The DTI shall adapt internationally accepted standards of management systems, and establish a culture of excellence between the public and private sectors.

• A faster and better business name registration system

• Restructuring the nationwide business permits and licensing system