Fostering Competitiveness of the Philippines to attract Foreign Direct Investments from the US

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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.

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Fostering Competitiveness of the Philippines to attract Foreign Direct Investments from the US

  1. 1. US and Philippines: Foreign Direct Investments Team 9 Consultants Inc. Topnotch Global Talent
  2. 2. Team 9 Consultants Inc. Topnotch Global Talent Fostering Competitiveness of the Philippines to Attract Foreign Direct Investments
  3. 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. 4. Team 9 Consultants Inc. Topnotch Global Talent 2008 Financial Crisis
  5. 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. 6. Team 9 Consultants Inc. Topnotch Global Talent SHIFT OF MOMENTUM FROM WEST TO EAST
  7. 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. 8. Team 9 Consultants Inc. Topnotch Global Talent Ripples of financial crisis seemed to have missed the Philippines
  9. 9. Team 9 Consultants Inc. Topnotch Global Talent 2.0 Philippines Growth in GDP
  10. 10. Team 9 Consultants Inc. Topnotch Global Talent Real Estate Boom Fuelled by Low Lending Rates source: http://brycggroup.com/category/bgperspectives/
  11. 11. Team 9 Consultants Inc. Topnotch Global Talent Deepening Capital Markets http://quotes.wsj.com/PH/XPHS/PSEI/index-interactive-chart
  12. 12. Team 9 Consultants Inc. Topnotch Global Talent Good Governance = Good Economics
  13. 13. Team 9 Consultants Inc. Topnotch Global Talent Growing Tourism Industry
  14. 14. Team 9 Consultants Inc. Topnotch Global Talent 3.0 Competitiveness and Growth
  15. 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. 16. Team 9 Consultants Inc. Topnotch Global Talent 4.0 Trends of Foreign Direct Investments
  17. 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. 18. Team 9 Consultants Inc. Topnotch Global Talent Labor and Employment
  19. 19. Team 9 Consultants Inc. Topnotch Global Talent Literacy Rate 96.7% 93.5% 93.1%
  20. 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. 21. Team 9 Consultants Inc. Topnotch Global Talent Tax and Ownership Structure Infrastructure Rank (out of 148) Philippines 86 Malaysia 14 Indonesia 61
  22. 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. 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. 24. Team 9 Consultants Inc. Topnotch Global Talent 4.0 Hurdles for the Philippine Government
  25. 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. 26. Team 9 Consultants Inc. Topnotch Global Talent 4.0 Hurdles for the Philippine Government (2) Insufficient Investment In Infrastructure Land Telecommunications Electricity
  27. 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. 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. 29. Team 9 Consultants Inc. Topnotch Global Talent 5.0 Public Policy and Government Action Recommendation
  30. 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. 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. 32. Team 9 Consultants Inc. Topnotch Global Talent 5.0 Public Policy and Government Action Recommendation (3) Restructure Tax Rates
  33. 33. Team 9 Consultants Inc. Topnotch Global Talent 5.0 Public Policy and Government Action Recommendation (4) Push for Transparency and Accountability
  34. 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. 35. Team 9 Consultants Inc. Topnotch Global Talent 5.0 Public Policy and Government Action Recommendation (6) Tilt the Playing Field through Incentives
  36. 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. 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.

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