meet the ambassador: opportunities in the philippines briefing
TRANSCRIPT
• REGION
• Land : 300,000 sq.km
• Population : 92 million (2010)
• Median age : 23 years old (2011)
• Labor force : 40 million
• Official Languages : Pilipino, English
• GDP: US$ 240 billion (2012 estimate)
• Income/capita : US$ 2,369 (2011)
• GDP composition : Agriculture (12%), Industry (33%), Services (54%)
• AT A GLANCE
• TRADE•Total value of exports: US$48.305 billion (2011)
•Primary exports: electronic products (49.3%), clothing (3.9%) woodcraft and furniture (3.8%), coconut oil (3.0%), refined copper (2.5%)
•Primary exports partners: China 19%, US 13.4%, Singapore 13.2%, Japan 12.8%, Hong Kong 7.6%, Germany 4.2%, South Korea 4.1% (2010)
•Total value of imports: US$60.496 billion (2011)
•Primary imports: electronic products (29.5%), mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic
•Primary imports partners: Japan 14.1%, China 13.6%, US 9.9%, Singapore 9.3%, Thailand 6.5%, South Korea 5.6%, Indonesia 4.1% (2010)
2010 2011
Export Import BOT Export Import BOT____
395,000,000 285,000,000 110,000,000 401,000,000 287,000,000 114,000,000
• PHILIPPINES – UK TRADE
The UK was the largest investor in the Philippines for the period 1999-2009 with combined investments of US$ 9.7 billion (£6.6 billion)
• GROWTH • 53 consecutive quarters of economic growth
• 6.6% for 2012
• Projected growth of 6-7 % in 2013, 6.5-7.5 % in 2014, 7–8 % in 2015, and 7.5 to 8.5 % in 2016
• Late last year, Moody’s became the latest rating agency to upgrade the Philippines, the country’s ninth positive ratings action over the last two years.
• All credit ratings agencies now rate the Philippines at just one level immediately below investment grade
• the Philippines is among only 10 sovereigns in the world with positive outlooks (Barclays)
Set to become the world’s 16th largest economy by 2050, up 27 places from today (HSBC)
• PHILIPPINE PESO / US DOLLAR
The Peso emerged as Asia-Pacific’s second best performing currency against the dollar in 2012, up 6.8% for the year
• INTERNATIONAL RESERVES (US$ billions)
2010 62,373
2005 18,495
2000 15,024
2013 (January) 83,800
equivalent to 12.3 months worth of the country’s imports, and over 10 times the country’s short-term debts denominated in foreign currencies
• REMITTANCES (in thousand US$)
10,689,005 12,761,308 14,449,928 16,426,854 17,348,052 18,762,989 20,116,992
2005 2006 2007 2008 2009 2010 2011
• 2012: 21,391,333 (+6.33%)
• From the UK in 2012: 1,071,650 (+12.02%)
• There are an estimated 10 million Filipino expatriates around the world, including around 250 thousand in the UK
• STOCK MARKET
• Ninth Best Performer in the World in 2012 (+33%)
• Broke all-time highs 38 times in 2012; 17 all-time highs so far in 2013 (+13% ytd)
• UK consistently in the top three portfolio investors in the Philippines
• INVESTMENTS
• IT-BPO
• In 2011, the Philippines overtook India as the world leader in contact center services revenue and employment.
• Economists project 20% industry growth every year over the next five years.
• Philippine contact services earned $7.4 billion in exports in 2011, ahead of India's $7 billion, and employed about half a million people, compared to India's 350,000.
• The Philippine IT-BPO Roadmap to increase total industry generated jobs from 1.8 million in 2010 to 4.5 million in 2016, and exports from $9 billion in 2010 to $25 billion in 2016, spanning the total range of voice and non-voice services
• INFLATION
• Inflation for 2012 was 3.2%
• Inflation for 2011 was 4.8%
• INTEREST RATES
• BUDGET DEFICIT
• P235 billion (estimate) in 2012, well below the full year cap of P279 billion, or equivalent to 2.2% of GDP
• P197.8 billion deficit in 2011, equivalent to 2% of GDP
• The Philippines has set an infrastructure budget of over US$9.6 billion for 2013 - the highest ever - and 19% more than the previous year
• P314.46 billion deficit in 2010, equivalent to 3.5% of GDP
• Deficit is programmed to decrease further in 2013 to only 2% of GDP, tentatively pegged at P241 billion
• TOURISM
2011 3,917,454 (+11.28%)
2010 3,520,471 (+16.68%)
2012 4,272,811 (+9.07%)
2012 113,282 (+8.44%)
2011 104,466 (+7.78%)
2010 96,925 (+6.50%)
Overall
United Kingdom
100 Best HolidaysNo. 1 -- ARIARA, PHILIPPINESFor the ultimate house party, the Ariara private island in the Philippines can be taken by a group of up to 18. Exotic, adventurous and with all the trimmings that British couple Charles and Carrie McCulloch were determined to provide having been disappointed by the crowd mentality that invariably takes over at luxury hotel chains, it will house you and your guests along a stunning beach so that you truly feel that you’ve found your corner of the world. Supreme in quality from the water sports to the food and wine, it’s worth every penny of its breath-taking prices. It can cost between £19k and £40k for a week – but fill it with the full house of 18 and it breaks down to £295 per person per night – which for a really special occasion might just be justified.
BEST FOR: The most decadent of group holidays.
www.ariaraisland.com
Philippine Advantage
Rich Talent Pool
Robust Infrastructure
Strategic Business Location
First-Class Lifestyle
THE PHILIPPINE ADVANTAGETHE PHILIPPINE ADVANTAGE
Attractive Investment Incentives
Rich Talent Pool
We produce over 470,000 college graduates per year across a wide range of disciplines.
• IT/Computer Sciences/Engineering - more than 100,000 college graduates per year
• In the business field - more than 110,000 graduates per year,
• In the medical field - more than 73,000.
Our Professionals are :•Highly Educated•English Proficient•Strongly Customer Service Oriented•Highly Trainable•With Fast Learning Curve•Adaptable to Universal Cultures •High Level of Commitment and Loyalty
The Philippine Advantage
The Philippine Advantage
Robust Infrastructure
• 9 international and 20 domestic airports,
• 3 connecting railways which span across the Metro, and 12 roll-on/roll-off ports.
• Newly constructed roads such as the 94-kilometer four-lane Subic-Clark-Tarlac Expressway (SCTEX), the 84-kilometer North Luzon Expressway (NLEX), the 42-kilometer STAR Tollway and Cavite Expressway (CAVITEX)
The Philippine Advantage
Strategic Business Location
The country’s location is a critical entry point to over 500 million people in the ASEAN Market and a natural gateway to the East- Asian economies.
• The country is likewise placed at the crossroads of international shipping and airlines.
• Within Asia, the Philippines is reachable within 3 to 4 hours by plane.
The Philippine Advantage
First-Class Lifestyle
• Accessible and affordable luxuries – value-for-money housing, modern recreational facilities, first-rate educational institutions adopting international standards, business centers, hospitals, etc.
• A growing favorite tourist destination, as evidenced by the steadily increasing tourist arrivals.
• Second home to expatriates who enjoy the company of the warmest people in the region, the country's openness to varied cultures and a decidedly global outlook.
The Philippine Advantage
INCENTIVEBOI
(Executive Order No. 226, as amended)
PEZA
(Republic Act No. 7916, as amended)
CDC / SBMA
(Republic Act No. 7227 – Bases Conversion Devt Authority
Income Tax Holiday
(ITH)4 – 6 years (max of 8 years) Exempted from all local and
national taxes - value-added taxes, franchise taxes, excise and ad valorem taxes)ITH Bonus 3 years provided the firm meets certain conditions
Special Tax Rate of 5% on Gross Income
Special Tax Rate of 5% on Gross Income
Importation of Capital Equipment, Spare Parts and Supplies
0% duty-free Tax and Duty-Free
Wharfage Dues and Export Tax, Duty, Impost and Fees
Exempted None
Simplication of Customs Procedures
Available
Employment of Foreign Nationals
Foreign nationals may be employed in supervisory, technical or advisory positions within 5 years from a project’s registration, extendible for limited periods. The positions of president, general manager, and treasurer or their equivalents, of foreign-owned registered firms may be retained by foreign nationals for a longer period.
All foreign employees may bring with them their spouses and unmarried children under 21 years
of age.
Attractive Investment Incentives
The Philippine Advantage
Investment Opportunities
I. Preferred ActivitiesRegular List:
Agriculture/ Agri-business and Fishery Creative Industries/Knowledge-Based
Services Shipbuilding Mass Housing Iron and Steel Energy Infrastructure Research and Development Green Projects Motor Vehicles Tourism Strategic Projects Hospital /Medical Services Disaster Prevention, Mitigation and Recovery
Projects
II. Export Activities
III. Mandatory List
Production and manufacture of export products Services exports Activities in support of exporters
IV. ARMM List
Investment Priorities Plan 2012
Trade Opportunities
1) Electronics
2) Fresh & Processed Food (dried tropical fruits) & Marine products
3) Design – Driven Products: a. Homestyle - furniture
3) Design – Driven Products: b) Homestyle - holiday decor
3) Design – Driven Products: c) Wearables - Fashion Accessories, Bags, Jewelry, Shoes
4) Garments/Textile (Men’s, Ladies, Children’s Wear)
5. IT/BPO/KPO & other related services
• Philippine International Trade Events– Design Week Philippines (11-17 March)– Manila FAME International (14-17 March &17-20
October 2012)– IFEX Philippines (16-19 May)
• Philippine Participation in European Trade Events– Gifts Expo in Moscow (18-21 March)– Salone Internazionale Del Mobile in Milan (09-14 April)– Moscow Int’l Furniture Show in Moscow (21-25 May)– Tendence in Frankfurt (24-27 August)– Macef in Milan (05-08 September)– Anuga in Cologne (05-09 October)
International Trade Shows for 2013
• Investment Assistance• Product sourcing Assistance through
– Department of Trade & Industry (DTI) Bureaus and Attached Agencies in Manila:
• Bureau of Export & Trade Promotion (BETP), • Center for International Trade Expositions & Missions (CITEM)• Philippine International Trading Corporation (PITC)
PTIC-London Role and Assistance
THANK YOU
PHILIPPINE TRADE AND INVESTMENT CENTER
Embassy of the Philippines, Commercial Section
1A Cumberland House, Kensington Court
London W8 5NX England, United Kingdom
Phone : +44.207.9371898/ +44.207.9377998
Fax : +44.20.79372747
E-mail: [email protected]