Presentation of the business report that provides fact-based insights and analysis to help the Philippine government (Department of Trade and Industry and Philippine Central Bank) make the right decisions and trade-offs in making their economy more competitive to attract foreign direct investments from the US.

1. US and Philippines:
Foreign Direct Investments
Team 9 Consultants Inc.
Topnotch Global Talent

2. Team 9 Consultants Inc.
Topnotch Global Talent
Fostering Competitiveness of the Philippines to
Attract Foreign Direct Investments

3. Team 9 Consultants Inc.
Topnotch Global Talent
Outline of Business Report Presentation
1.0 Overview of post-financial crisis economy
!
2.0 Philippine introduction
!
3.0 Competitiveness and Growth
!
4.0 Foreign Direct Investment Trends
!
5.0 Hurdles for the Philippines
!
6.0 Public Policy and Government Action Recommendations
!
7.0 Conclusion

4. Team 9 Consultants Inc.
Topnotch Global Talent
2008 Financial Crisis

5. Team 9 Consultants Inc.
Topnotch Global Talent
1.0 Overview of the post-financial crisis economy
2.8M people lost jobs
!
Banks closed. Companies froze.
!
U.S. slowed down -8.3% GDP decline
!
Europe was in crisis
!
Asian Market Decline
!

6. Team 9 Consultants Inc.
Topnotch Global Talent
SHIFT OF
MOMENTUM FROM
WEST TO EAST

7. Team 9 Consultants Inc.
Topnotch Global Talent
Foreign Direct Investment in the United States and U.S. Direct Investment
Abroad, Annual Inflows and Outflows, 1990-2011 (in billions of dollars)

8. Team 9 Consultants Inc.
Topnotch Global Talent
Ripples of financial crisis seemed to have missed
the Philippines

9. Team 9 Consultants Inc.
Topnotch Global Talent
2.0 Philippines
Growth in GDP

10. Team 9 Consultants Inc.
Topnotch Global Talent
Real Estate Boom Fuelled by Low Lending Rates
source: http://brycggroup.com/category/bgperspectives/

11. Team 9 Consultants Inc.
Topnotch Global Talent
Deepening Capital Markets
http://quotes.wsj.com/PH/XPHS/PSEI/index-interactive-chart

12. Team 9 Consultants Inc.
Topnotch Global Talent
Good Governance = Good Economics

13. Team 9 Consultants Inc.
Topnotch Global Talent
Growing Tourism Industry

14. Team 9 Consultants Inc.
Topnotch Global Talent
3.0 Competitiveness and Growth

15. Team 9 Consultants Inc.
Topnotch Global Talent
3.0 Competitiveness and Growth
In our analysis, we focused on the potential growth of
certain sectors in the Philippines by understanding the
measures and factors that have been critical for
building certain competitive edges.

16. Team 9 Consultants Inc.
Topnotch Global Talent
4.0 Trends of Foreign Direct Investments

17. Team 9 Consultants Inc.
Topnotch Global Talent
Convenience of Doing Business
Starting a business
Dealing with
construction
permits
Getting electricity
Registering
property
Getting Credit
Protecting
Investors
Paying taxes
Trading Across
Borders
Enforcing
Contracts
Resolving
insolvency
175
170
16
88
121
99
33
43
21
101
86
121
86
35
1
52
137
128
131
4
36
54
42
5
147
114
30
144
100
42

18. Team 9 Consultants Inc.
Topnotch Global Talent
Labor and Employment

19. Team 9 Consultants Inc.
Topnotch Global Talent
Literacy Rate
96.7%
93.5%
93.1%

20. Team 9 Consultants Inc.
Topnotch Global Talent
Infrastructure
Infrastructure
Rank (out of 148)
Score(1-7)
Philippines
96
3.4
Malaysia
29
5.2
Indonesia
61
4.2

21. Team 9 Consultants Inc.
Topnotch Global Talent
Tax and Ownership Structure
Infrastructure
Rank (out of 148)
Philippines
86
Malaysia
14
Indonesia
61

22. Team 9 Consultants Inc.
Topnotch Global Talent
Growing Consumption
Philippines has a relatively high percentage of
private consumption in terms of contribution
to GDP (12%).

23. Team 9 Consultants Inc.
Topnotch Global Talent
Non-economic Factors
Country
Economic Impact
People Killed (per
(per highest impact common disaster)
disaster)
People Affected (per
common disaster)
$29 million
123
477,641
$34 million
6
17,614
$11.3 million
2,360
111,101

24. Team 9 Consultants Inc.
Topnotch Global Talent
4.0 Hurdles for the Philippine Government

25. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Hurdles for the Philippine Government
(1) High levels of corruption, strict labor
laws, and bureaucracy in business approvals
35 days
6 days
48 days

26. Team 9 Consultants Inc.
Topnotch Global Talent
4.0 Hurdles for the Philippine Government
(2) Insufficient Investment In Infrastructure
Land
Telecommunications
Electricity

27. Team 9 Consultants Inc.
Topnotch Global Talent
4.0 Hurdles for the Philippine Government
(3) High Tax Rates
46.6%
24.5%
34.5%

28. Team 9 Consultants Inc.
Topnotch Global Talent
4.0 Hurdles for the Philippine Government
(4) Non-economic Factor
Need for a sustainable supply chain
and logistics during natural disasters

29. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation

30. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation
(1) Higher Investment in Education and Proper
Implementation of K-12 Curriculum

31. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation
(2) Proper Execution of Imposed Prudent Measures
and Risk Management Practices by the Central Bank

32. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation
(3) Restructure Tax Rates

33. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation
(4) Push for Transparency and Accountability

34. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation
(5) Continue Additional Spending on Infrastructure and R&D

35. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation
(6) Tilt the Playing Field through Incentives

36. Team 9 Consultants Inc.
Topnotch Global Talent
5.0 Public Policy and Government Action
Recommendation
(1) Higher Investment in Education and Proper
Implementation of K-12 Curriculum
(2) Proper Execution of Imposed Prudent Measures
and Risk Management Practices by the Central Bank
(3) Restructure Tax Rates
(4) Push for Transparency and Accountability
(5) Continue Additional Spending on Infrastructure and R&D
(6) Tilt the Playing Field through Incentives

37. Team 9 Consultants Inc.
Topnotch Global Talent
6.0 Conclusion
The Philippines, given its current momentum and
position in the global economy, can be more competitive
by pushing for proper public policy changes, structural
actions and smooth execution.