Although the Philippines boasts one of Asia's oldest capital markets, it still remains heavily dependent on foreign portfolio investors, a reality confirmed by last year's market activity. The Philippine Stock Exchange Index (PSEi), alongside many of the world's equity markets, lost nearly 50% last year, mostly due to foreign sell off. However, despite the challenges endured by the PSEi in 2008, the…
While the majority of industries are struggling to cope with the effects of the ongoing global economic downturn, the Philippines business process outsourcing (BPO) sector is expected to post 20-30% growth in 2009. Although this is far short of the near-50% increase the industry enjoyed throughout 2004-07, it will certainly play a major role in keeping the Filipino economy afloat during what is proving…
Development of the Filipino agricultural sector is key to the economic and social progression of the country, especially considering the potential impact the industry can have on poverty and unemployment. In 2007 agriculture activity already employed nearly 12m people, equating approximately to one-third of the country's entire labour force, while also accounting for nearly one-fifth of GDP at 18%.…
The Philippine government has placed particular focus on the development of the country's IT industry, though the sector still faces numerous challenges in order to modernise its infrastructure. In early August the development of the IT sector in the country drew the attention of the UN International Telecommunications Union (ITU). The ITU deputy secretary-general, Houlin Zhao, visited the country…
Although the Philippines proudly boasts some of the best doctors and nurses in the world, the country's health care system as a whole has plenty of room for improvement. The Filipino health sector bears resemblance to that of its educational system in that the private sector maintains several very high-level institutions, while the public sector is faced with a severe lack of funding due to a stretched…
The Philippines' current display of courage and resilience in the wake of devastating typhoons Ondoy (international name: Ketsana) and Pepeng (Parma) bears resemblance to that of the country's economic performance during the current economic downturn. The country, in the midst of the current economic crisis, will post positive growth figures in 2009 despite most analysts envisaging a difficult year…
With booming numbers of tourists pouring into the country, the Philippines is keen to exploit this sector further to create jobs and revenue. Tourism has been growing steadily in recent years with the record-breaking 2.8m tourist arrivals in 2006 representing an 8.4% increase on 2005. This year the target is 3m, according to Rolando Cañizal, director of the office of tourism. Cañizal told OBG…
The state-run Philippine Ports Authority (PPA) has ordered a restart of the bidding process for the multibillion-peso contract to operate the Manila's lucrative North Harbour. The PPA is inviting bids for the contract from a single operator that would, in turn, market its facilities to concessionaires. The PPA has been charged with responsibility for overseeing the privatisation of Manila North…
The government recently adopted measures making it mandatory for certain firms to establish corporate social responsibility (CSR) programmes in return for tax benefits. The Philippine Board of Investments (BOI), a government organisation under the department of trade and industry and the lead agency in seeking investments in the Philippines, will now require firms registered under the 2007 Investment…
Manila Electric Co (Meralco) and the National Power Corporation (Napacor) have agreed to put a price ceiling on generation charges. As a result, companies located in economic zones will receive lower power rates. A memorandum of agreement was signed by the two power firms, in which Napacor will introduce a fixed generation rate of P3.52 ($0.08) per kilowatt-hour (kWh) and Meralco, the distributor,…
