The real estate sector will likely endure a difficult year throughout 2009 as the deepening global economic crisis continues to dampen consumer and investor confidence. However, strong foundations have been built since the last economic turmoil of 1997 and most analysts believe the sector should withstand the turbulence posting slower or possibly even flat growth. The five years preceding 2008 saw…
Blessed with stunning landscapes, white sand beaches, rich biodiversity and wonderful hospitality, the Philippines has all the key elements of a premier tourism destination. Yet, for all these natural qualities, the country is still struggling to build the necessary infrastructure to accommodate large numbers of tourists. It seems the government has recognised the underutilisation of its chief assets…
The Philippines, a country with an abundance of natural resources, has remained a largely untapped market for the mining industry. However, it seems the Filipino government has finally decided to start capitalising on its inherent asset by pursuing investor-friendly reforms designed to benefit all stakeholders. The debate over the exploitation of the country's vast mineral deposits largely stemmed…
The Philippines boasts one of the few banking sectors around the world to have evaded many of the consequences of the US-led financial turmoil. Certainly much is owed to lessons learned in the form of strong monetary and fiscal policy reforms after the Asian financial crisis in 1997-98. Relatively conservative banking practices also played a significant role in sheltering the country's finances during…
While the Philippines continues to grow and diversify its service-based industries, such as its business process outsourcing sector, the reality for its manufacturing does not live up to full potential. If the country can develop a robust manufacturing sector to go along with its already expanding service industries, its future economic prospects stand to significantly increase, especially as global…
The Philippines’ retail sector is expected to ride a wave of consumer confidence, underpinned by strong economic growth and an increasing flow of remittances from expatriate Filipino workers. After experiencing 1.1% GDP growth in 2009, the economy has shifted up a couple of gears – first-quarter growth in 2010 was 7.3% year-on-year. Figures released by the National Statistical Coordination Board…
Though Philippine President Benigno Aquino III was only sworn in on July 1, concerns are already voiced in some quarters over the potential impact of administration’s planned austerity measures on the transport sector. These measures will likely rule out the kind of big-ticket transport infrastructure projects cited by supporters of the outgoing president, Gloria Macapagal-Arroyo, as some of her…
The Philippine government announced in late April that it would provide P34bn ($717m) in loans to small- and medium-sized enterprises (SMEs). The government has made the development of such businesses a priority and implementing a wide range of initiatives to foster growth, including facilitation of financing. SMEs are the backbone of the Philippine economy, representing 99.6% of all registered companies.…
After allegations of fraud dominated the 2004 elections, all eyes were on the elections this May 14 to see how they would play out. Voting to decide local and provincial seats, house of representative positions and half of the 24 senate seats passed with less bloodshed than anticipated. Although watchdogs had placed the figure of election-related deaths at around 150, police said there were a total…
At the beginning of May the Philippine biofuels act came into force, giving the country a boost in its drive to switch to alternative, eco-friendly fuel sources. The act mandates that as of May 6, all diesel vehicles should use fuel that contains a minimum 1% biodiesel blend. This will be increased to 2% by mid-2009. In addition, all gasoline will have to include at least 5% ethanol by mid-2009 and…
