If you’re investing in a business in the Philippines, you can take advantage of the country’s continuously growing economy and get excellent opportunities for success.
Here are the top reasons why setting up shop in the Philippines promises to be a highly rewarding endeavor.
The Philippines has a population of more than 100 million, making it the 13th most populous country in the world. It has a young median age of 25.7, and as the population matures, consumer demand has also been increasing at a steady pace. The population is split almost evenly between urban and rural dwellers.
With such a large and highly diverse market, there are numerous industries and opportunities that you can tap for your enterprise. The economy has been consistently growing, posting annual GDP gains from 2010 to 2019. The country also has a long standing trade partnership with numerous countries around the world, with Japan, the US, and China topping the list.
Infrastructure is very important to economic growth and the Philippines has a fast growing infrastructure system. From power generating plants to highways, roads, and bridges connecting urban communities to remote areas, infrastructure in the entire country has been booming in the past decade or so. New airports, information and communications networks, railway systems, and more have also been developed or are in the pipeline.
There’s a variety of government incentives to take advantage of. The Department of Trade and Industry and other government agencies offer incentive programs to qualified businesses of all sizes. Benefits under the PEZA (Philippine Export Zone Authority) programs include tax holidays, duty exemptions, simplified procedures, and others. Other incentives include tax credits for the use of domestic materials, income tax deductions for labor expenses, small business grants, marketing support, and more.
In addition to the above-mentioned incentives, small businesses are provided the right infrastructure and support to achieve momentum. These include training and seminars in entrepreneurship, marketing, and production; skills development programs; assistance in product development and technology; and exposure to various markets through local and international trade shows and exhibitions.
The paperwork involved in setting up and maintaining a business in the Philippines can be quite daunting. However, important measures have recently been undertaken by the various agencies involved to streamline business registration and documentation processes.
These measures include shifting to electronic processing wherever possible. In the 2020 UN E-Government Survey, which measures e-government initiatives of various countries, the Philippines was recognized as one of the countries with a Very High E-Participation Index level.
In addition, in the World Bank’s 2020 Ease of Doing Business report, the Philippines improved its ranking from 124th to 95th in the world. The report cited improvements in starting a small business, obtaining construction permits, and protecting minority investors, among others.
According to UNESCO, the literacy rate among Filipinos 15 years and older is 98.18%, and almost 60% of the population age 25 years and older have completed at least early secondary education. English is an official language in the country, and nearly 64% of the population can speak it. In Metro Manila, about 82% of the population speak English. Along with a young population, these make the Philippines a country of highly trainable, educated workers who are open to doing a wide range of jobs.
In International Living’s Global Retirement Index for 2017, the Philippines scored 90 out of 100 for cost of living. The report also shows how you can live a life of luxury in the country for only $1,525 a month, with perks that include living in a high end condo or townhome with a maid and a gardener, fancy dinners twice a month, and island hopping adventures every month.
In the US News and World Report Best Countries Report 2020, the Philippines scored 96.8 out of 100 in the “Cheap manufacturing costs” index and 96.2 in the “Affordable quality of life” index.