PH as a New Growth Area

Given rapidly changing global conditions, the Philippines is now seen as a new growth area. Many see the impressive 6.8% growth rate in 2012 and 7.2% growth posted in 2013 (second to China’s 7.7%) as providing the necessary momentum that would drive the country to a higher and more rapid growth path. The economic outlook remains positive with 6.1% growth rate posted in 2014. Indeed, these are exciting times for the country as it now faces a decisive moment for the future of industries.

What Makes the Philippines Different

With the popularity and high trust rating of the Aquino administration and its continuing efforts to improve the country’s infrastructure and investment climate, as well as our strengths such as low and stable wages, abundant, young, skilled, English speaking workers, growing middle class, improving competitiveness and implementation of a new industrial policy, the Philippines is well positioned to attract new investments that would catalyze the growth and development of its industries.
Market Opportunities
Growing Middle Class
Growing Market
Demographic Sweet Spot
Policy Focus
New Industrial Policy
Industry programs to support manufacturing resurgence
A more pro-active government
Philippine Economic Zone Authority
Board of Investments: investment facilitation, investor care
Highly trainable workforce
Young and english speaking
Labor
Moderate Wage Increases
Improved competitiveness ranking
Rank #52 in 2014-15 from rank #59
World Economic Forum
Operating Environment
Strong macroeconomic fundamentals
Business and consumer confidence
Political stability

Comprehensive
National
Industrial
Strategy

A Comprehensive National Industrial Strategy (CNIS) is being pursued to upgrade industries; link together and integrate manufacturing, agriculture and services; address supply chain gaps; and deepen industry participation in global value chains. It sees the private sector as the major driver of growth, while the government acts as coordinator and facilitator in addressing the most binding obstacles to the entry and growth of domestic firms and creation of the right policy framework to encourage the development of the private sector along the lines of the country’s current and latent comparative advantage. The CNIS is implemented within the context of an open market economy, where trade affects growth through competition, innovation, and productivity.

Important Channels Affecting Industry Growth


Competition

Innovation

Productivity

Globalization
External Factors
Global & Regional Production Networks
Regional, Bilateral, Multilateral Trading Arrangements
Forestry
Fishing
Mining
Agriculture
Services
Manufacturing
Infrastructure
Political Climate
Government Policies and Programs
Internal Factors
Institutions
Macrostability
Peace & Order
Rule of Law