Trade & Investment
From The Report: The Philippines 2015
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Although foreign direct investment (FDI) volumes are smaller than what countries in its peer group attract, the Philippines has been catching up at an impressive pace. FDI rose from $1.1bn in 2010 to $4.9bn in the first nine months of 2014 as economic growth has accelerated and business policies have improved. With seven investment promotion agencies offering a variety of tax exemptions and other benefits, the Philippines provides considerable incentives to attract foreign investment. FDI is likely to continue to grow as low oil prices benefit consumers of the Philippines’ electronics and business process outsourcing services exports. In the long run, the country’s success will depend on whether it tackles the tough issues of institutional reforms and infrastructure investment.

This chapter contains an interview with Alfred M Yao, President, Philippine Chamber of Commerce and Industry; and a roundtable with Arthur P Tugade, President and CEO, Clark Development Corporation; Deogracias G P Custodio, Chairman and Administrator, Freeport Area of Bataan; Lilia B de Lima, Director-General, Philippine Economic Zone Authority; and Roberto Garcia, Chairman and Administrator, Subic Bay Metropolitan Authority.

Articles from this Chapter

Overview

Market reforms in the Philippines should see exports and investment increase
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After years of lagging behind its South-east Asian peers, the Philippines is seeing a long-awaited awakening of foreign direct investment (FDI). Although FDI volumes are still smaller than what countries in its peer group attract, the Philippines has been catching up at an impressive pace. Although many of the challenges that impeded investment in the past have yet to be overcome, the faster economic growth of recent years and stronger efforts to attract investment have improved perceptions of the country’s prospects. Human capital, young demographics and consumerist culture are the country’s key strengths in both investment and trade.…

Analysis

The Philippines plans a vast new urban centre in central Luzon
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If anyone else in the Philippines had a plan as ambitious as Clark Green City, it would probably be regarded as unrealistic and unlikely to happen. Clark Green City is a dream to create an entirely new planned city, about 130 km north-west of downtown Manila. Although near the twin cities of Angeles and Mabalacat, Clark Green City will be visually isolated from them, over a river and in the foothills. Its backers are hoping it will become one of the largest centres of business process outsourcing (BPO) and manufacturing in the Philippines outside of Manila. Similar big ideas have gone nowhere, as investors are typically reluctant to be…

Analysis

Bouncing back: The local electronics industry is benefitting from higher global demand
OBG
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After many years of struggling, the Philippines’ electronics industry appears to be finally making a turnaround, thanks to an improving investment climate and strengthening global demand. Bankers, economists and business executives who follow the industry’s fortunes say the turnaround began in late 2013 and has been gathering pace since. The crucial question, which will only be answered in time, is whether the Philippines is beginning to overcome the problems that have caused its electronics industry to lose ground against competitors, or if it is merely enjoying a short-term bounce from stronger global markets. Trade data from the…

Interview

Alfred M Yao, President, Philippine Chamber of Commerce and Industry (PCCI): Interview
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Interview:Alfred M Yao How can the Philippines encourage the development of locally produced content and Philippine-branded products both domestically and abroad? YAO: There are a myriad of local products that can successfully compete against their foreign counterparts, including Champion for laundry detergents, Hapee for toothpaste, EQ for diapers, C2 for flavoured drinks and others. These are all well run, hyper-competitive and gaining market share. In addition, Kenneth Cobonpue, Cora Jacob,…

Overview

OBG talks to Arthur P Tugade, President and CEO, Clark Development Corporation; Deogracias G P Custodio, Chairman and Administrator, Freeport Area of Bataan (FAB)
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Interview:Arthur P Tugade andDeogracias G P Custodio How can connectivity to and from economic zones be facilitated to complement growth? ARTHUR P TUGADE:Connectivity to and from the nation’s ecozones is important for ensuring the fast and efficient delivery of goods and services, as well as the movement of people. Airports and seaports with complementing road network infrastructure are necessary. The government should provide these facilities and continually upgrade them. Some…

Interview

Lilia B de Lima, Director-General, Philippine Economic Zone: Authority (PEZA); and Roberto Garcia, Chairman and Administrator, Subic Bay Metropolitan Authority: Interview
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Interview: Lilia B de Lima and Roberto Garcia Following the formation of export-processing clusters, how can economic zones transition into alternatives for urban and leisure development? LILIA B DE LIMA:In the past, the dominant trend has been migration to urban centres and cities due to limited job opportunities in the provinces. With our economic zones spread all over the country, we are bringing jobs to the people, encouraging them to stay within their provinces. As the population of…