Meet the Ambassador: Opportunities in the Philippines BriefingPresentation Transcript
• AT A GLANCE • 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%)
• 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$60.496 billion (2011) •Primary imports: electronic products (29.5%), mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic •Primary imports partners: Japan 14.1%, China 13.6%, US 9.9%, Singapore 9.3%, Thailand 6.5%, South Korea 5.6%, Indonesia 4.1% (2010)
• PHILIPPINES – UK TRADE 2010 2011 Export Import BOT Export Import BOT____ 395,000,000 285,000,000 110,000,000 401,000,000 287,000,000 114,000,000 The UK was the largest investor in the Philippines for the period 1999-2009 with combined investments of US$ 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) 2000 15,024 2005 18,495 2010 62,373 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$) • There are an estimated 10 million Filipino expatriates around the world, including around 250 thousand in the UK 2005 2006 2007 2008 2009 2010 2011 10,689,005 12,761,308 14,449,928 16,426,854 17,348,052 18,762,989 20,116,992 • 2012: 21,391,333 (+6.33%) • From the UK in 2012: 1,071,650 (+12.02%)
• 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
• IT-BPO • In 2011, the Philippines overtook India as the world leader in contact center services revenue and employment. • Philippine contact services earned $7.4 billion in exports in 2011, ahead of Indias $7 billion, and employed about half a million people, compared to Indias 350,000. • Economists project 20% industry growth every year over the next five years. • 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 2011 was 4.8% • Inflation for 2012 was 3.2%
• INTEREST RATES
• BUDGET DEFICIT • P314.46 billion deficit in 2010, equivalent to 3.5% of GDP • P197.8 billion deficit in 2011, equivalent to 2% of GDP • P235 billion (estimate) in 2012, well below the full year cap of P279 billion, or equivalent to 2.2% of GDP • Deficit is programmed to decrease further in 2013 to only 2% of GDP, tentatively pegged at P241 billion • 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
100 Best HolidaysNo. 1 -- ARIARA, PHILIPPINESFor the ultimate house party, the Ariara privateisland in the Philippines can be taken by agroup of up to 18. Exotic, adventurous and withall the trimmings that British couple Charlesand Carrie McCulloch were determined toprovide having been disappointed by the crowdmentality that invariably takes over at luxuryhotel chains, it will house you and your guestsalong a stunning beach so that you truly feelthat you’ve found your corner of the world.Supreme in quality from the water sports to thefood and wine, it’s worth every penny of itsbreath-taking prices. It can cost between £19kand £40k for a week – but fill it with the fullhouse of 18 and it breaks down to £295 perperson per night – which for a really specialoccasion might just be justified.BEST FOR: The most decadent of groupholidays.www.ariaraisland.com
THE PHILIPPINE ADVANTAGERich Talent PoolRobust InfrastructureStrategic Business LocationFirst-Class LifestyleAttractive Investment Incentives
The Philippine Advantage Rich Talent PoolOur 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 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.
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 AdvantageStrategic Business LocationThe country’s location is a critical entrypoint to over 500 million people in theASEAN Market and a natural gateway tothe 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• Second home to expatriates who enjoy the company of the warmest people in the region, the countrys openness to varied cultures and a decidedly global outlook. • 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.
The Philippine Advantage Attractive Investment Incentives BOI PEZA CDC / SBMA INCENTIVE (Executive Order No. 226, as (Republic Act No. 7916, as (Republic Act No. 7227 – Bases amended) amended) Conversion Devt AuthorityIncome Tax Holiday Exempted from all local and 4 – 6 years (max of 8 years)(ITH) national taxes - value-added taxes, franchise taxes, excise andITH Bonus 3 years provided the firm meets certain conditions ad valorem taxes)Special Tax Rate of 5% Special Tax Rate of 5% on Gross Incomeon Gross IncomeImportation of CapitalEquipment, Spare Parts 0% duty-free Tax and Duty-Freeand SuppliesWharfage Dues andExport Tax, Duty, Impost Exempted Noneand FeesSimplication of Customs AvailableProcedures 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, generalEmployment of Foreign manager, and treasurer or their equivalents, of foreign-owned registered firms may be retained byNationals foreign nationals for a longer period. All foreign employees may bring with them their spouses and unmarried children under 21 years of age.
Investment Priorities Plan 2012 I. Preferred Activities II. Export ActivitiesRegular List: Production and manufacture of export products Agriculture/ Agri-business and Fishery Services exports Creative Industries/Knowledge-Based Activities in support of exporters Services Shipbuilding Mass Housing Iron and Steel III. Mandatory List Energy Infrastructure IV. ARMM List Research and Development Green Projects Motor Vehicles Tourism Strategic Projects Hospital /Medical Services Disaster Prevention, Mitigation and Recovery Projects
International Trade Shows for 2013• 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)
PTIC-London Role and Assistance• 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)
British Companies in the Philippines
THANK YOUPHILIPPINE TRADE AND INVESTMENT CENTEREmbassy 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: firstname.lastname@example.org email@example.com