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DTI TNK 2019 CIIE

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Philippine Trade Secretary Ramon Lopez shares why it is a great time to invest in the Philippines. The Philippine economy overview in 2019

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DTI TNK 2019 CIIE

  1. 1. SECRETARY RAMON M. LOPEZ DEPARTMENT OF TRADE AND INDUSTRY
  2. 2. INDIA 5.4% THAILAND 2.6% CHINA 6.2% MALAYSIA 4.7% SINGAPORE 0.6% INDONESIA 5.1% VIETNAM 6.7% PHILIPPINES 5.5% Philippines, 2nd-fastest ASEAN-6 economy in 1st half of 2019.
  3. 3. 108 M Population (as of Sep 2019) FILIPINOS ARE YOUNGER COMPARED TO THE REST OF THE WORLD EU-28 Thailand USA Australia China UAE Vietnam Philippines The median age in the Philippines is about 24 years old. This is equivalent to the age of someone who recently graduated from college. 43 38 38 37 37 34 30 24 PH in Demographic Sweet Spot Bigger population with low unemployment rate means there is income, hence, a bigger consumer base. A younger population of workers also means longetivity of work years
  4. 4. -7.3-7.3 3.4 4.3 6.8 6.2 3 -0.6 0.3 2.1 4.44.7 5.8 5.2 -0.6 3.1 4.4 2.9 3.6 5.0 6.7 4.8 5.2 6.6 4.2 1.1 7.6 3.7 6.7 7.1 6.16.1 6.96.7 6.2 -10 -8 -6 -4 -2 0 2 4 6 8 101984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 S&P has upgraded PH’s rating to BBB+, 2 notches above investment grade, reflecting the country’s upward growth trajectory. Source of basic data: BSP, PSA GDP Growth Narrowing range of growth rates/ more stability and upward trajectory for Philippine GDP growth. Average PH GDP growth rates
  5. 5. Source: Philippine Statistics Authority Robust PH GDP growth in first 2 quarters of 2019 Growth rate (%) in: Q1 2019 Q2 2019 GDP 5.6 5.5 Expenditure Side Household Consumption 6.1 5.6 Government Spending 7.4 6.9 Capital Formation 8.0 -8.5 Exports of Goods & Services 5.7 4.4 Imports of Goods & Services 8.6 0.0 Production Side Agri, Hunting, Fishery, Forestry 0.7 0.6 Industry 4.8 3.7 Construction 4.9 4.0 Manufacturing 5.4 -0.6 Services 6.8 7.1
  6. 6. Source: PSA GDP Growth Expenditure First 3 years of Aquino First 3 years of Duterte First 12 quarters 2010 2011 2012 2016 2017 2018 Aquino (ave.) Duterte (ave.)Growth rate (%) in: GDP 7.6 3.7 6.7 6.9 6.7 6.2 5.9 6.4 Household Consumption 3.4 5.6 6.6 7.1 5.9 5.6 5.6 5.9 Government Spending 4.0 2.1 15.5 9.0 6.2 13.0 6.5 8.4 Capital Formation 31.6 2.8 -4.3 24.6 9.4 13.2 12.1 10.9 Exports 21.0 -2.5 8.6 11.6 19.7 13.4 4.3 13.9 Imports 22.5 -0.6 5.6 20.2 18.1 16.0 5.2 14.8 More stable positive GDP growth in first 3 years of Duterte. Faster GDP growth during first 12 quarters of Duterte admin on the back of stronger household consumption, government spending, and capital formation.
  7. 7. GDP Growth Production First 3 years of Aquino First 3 years of Duterte First 12 quarters 2010 2011 2012 2016 2017 2018 Aquino (ave.) Duterte (ave.) GDP 7.6 3.7 6.7 6.9 6.7 6.2 5.9 6.4 Agri, Hunting, Fishery, Forestry -0.2 2.6 2.8 -1.2 4.0 0.9 2.3 1.9 Industry 11.6 1.9 7.3 8.1 7.1 6.7 6.3 6.7 Construction 14.3 -9.6 18.2 12.1 5.1 14.9 9.4 9.2 Manufacturing 11.4 7.0 2.2 7.1 8.4 4.9 6.3 6.4 Services 7.2 4.9 7.1 7.5 6.8 6.8 6.4 6.9 Higher output growth for industry and services, on average, during the first 3 years and first 12 quarters of Duterte admin compared to Aquino admin.
  8. 8. Source of basic data: Bangko Sentral ng Pilipinas, Philippine Statistics Authority 3.4 3.9 4.3 4.5 4.6 5.2 5.7 6.4 6.7 6.7 6.0 5.1 4.4 3.0 3.3 3.8 0.8 Inflation declining and manageable, within target range 3.2 2.7 2.4 1.7 0.9
  9. 9. Source: PSA Unemployment at 5.2% in Jan-July 2019, lowest in nearly 40 years
  10. 10. ASEAN – Canada Joint feasibility study being undertaken; exploratory discussions to commence in July ASEAN – EU Currently undertaking scoping exercise for a possible ASEAN- EU FTA negotiations Europe: EFTA (Switzerland, Norway Iceland and Liechtenstein) EU (GSP+): 6,274 items US GSP: 5,057 items WTO Member since January 1995 ASEAN – Hong Kong, China Signed in 2018 ASEAN – EAEU Currently studying request made by Russia RCEP Concluded 20 chapters in November 2019 ACCESS TO KEY MARKETS FTAs in the Pipeline 108M Market Size ASEAN (10 members): 629 M ASEAN Partners - China, Japan, South Korea, India, Australia and New Zealand: 3.5 B (1/2 of World Population and $22.4 T (1/3 of World Economy)PH-ROK Negotiations commenced last 03 June 2019
  11. 11. Within Asia, Philippines is reachable within 3 to 4 hours by plane. ACCESS TO KEY MARKETS North America South America
  12. 12. PH: Number 1 in 20 Best Countries Around the World to Invest In Now *USNewsSurvey2018
  13. 13. World Bank Doing of Business 2020 Report World Bank Doing of Business 2020 Rankings 124th 95th World Bank Doing of Business 2020 Scores 57.68 62.8
  14. 14. PH to become the 16th largest economy in the world by 2050, according to the Trade Winds report issued by the research arm of Anglo- Chinese bank HSBC.
  15. 15. NEDA: PH to attain status of upper middle-income economy in 2020
  16. 16. 1 2 3 4 5 Continue and maintain current macroeconomic policies, including fiscal, monetary, and trade policies Include progressive tax reform and more effective tax collection indexing taxes to inflation Increase competitiveness and the ease of doing business Accelerate annual infrastructure spending to account for 5% of GDP, with public-private partnerships playing a key role Promote rural and value chain development toward increasing agricultural and rural enterprise productivity and rural tourism 6 7 8 9 10 Ensure security of land tenure to encourage investments, and address bottlenecks in land management and titling agencies Invest in human capital development, including health and education systems, and match skills and training Promote science, technology, and the creative arts to enhance innovation and creative capacity Improve social protection programs, including government’s Conditional Cash Transfer program Strengthen implementation of the Responsible Parenthood and Reproductive Health Law 10-POINT SOCIOECONOMIC AGENDA
  17. 17. BUILD. BUILD. BUILD • Extensive and efficient infrastructure facilitates trade • It open up access to new markets, while minimizing trade and logistic costs • Increase efficiencies in business operations to make industries more competitive • It will bring development to the remotest and poorest communities, enhance MSMEs in the countryside • It will improve agricultural productivity, promote more value-adding agri-business products • Decongest Metro Manila and spread gains of growth throughout the country and address inequality Infrastructure Development Importance of Infrastructure
  18. 18. Infrastructure Development ECONOMIC ZONES and IPAs PPP and other Infrastructure Projects in the pipeline) Other Infrastructure Projects under implementation •Mactan-Cebu International Airport •Bulacan Bulk Water Supply •LRT Line 1 Projects under Procurement •53 projects •NAIA Expressway •LRT Line 1 Cavite Extension •Daang Hari-SLEX Link Road •Soutwest Integrated Transport System •Cavite-Laguna Expressway •Bulacan Bulk Water Supply •18 IPAs •73 Manufacturing EcoZones •243 IT Parks and Centers •21 Agro-Industrial EcoZones •19 Tourism EcoZones •2 Medical Tourism Zones
  19. 19. - TRAIN Law - Ease of Doing Business & Efficient Delivery of Government Services Act - 11th Foreign Investment Negative List (FINL) - Amendments to Corporation Code - Amendments to Public Service Act - Amendments to Retail Trade Liberalization Act - Corporate Income Tax and Incentive Rationalization Act (CITIRA Bill) POLICY REFORMS
  20. 20. SUCCESS STORIES
  21. 21. "Lesson here is identify the right target consumer and correlate that to the right location for your target market... Another lesson here is that branding and awareness really takes time. This doesn’t happen overnight and takes a lot of effort." Less in Q&A with Tokyo Tempura Founder Jorge Wieneke on Launching New Concepts with Josiah Go on April 13, 2018 JORGE WIENEKE
  22. 22. ​Tokyo Tempura was created out of the need to make tempura affordable and available…we felt it opportune to democratize tempura: making more people happy with unlimited tempura in more places than one.​​
  23. 23. EDGAR "INJAP" J. SIA II “We Dream Big, We Plan Carefully, And We Execute with Intense Passion.” MR.
  24. 24. At 33, Injap was a multi-billionaire when he sold 70 percent of Mang Inasal to Jollibee; at 35, was awarded an honorary doctorate and the TOYM award for entrepreneurship. In 2016, he became the Philippines’ youngest dollar billionaire, per Forbes, with wealth of $1.2 billion.
  25. 25. Double Dragon Plaza is a 4.8 hectare prime commercial and office building complex development located at the Bay Area, the next prime office destination in the country.
  26. 26. CityMall Commercial Centers, Inc. is a subsidiary of DoubleDragon Properties. It owns a chain of community shopping malls, with branches across the Philippines.
  27. 27. Central Hub Industrial Centers Inc. will offer standardized multi-use warehouses suited for commissaries, cold storage and logistic centers. It aims to have the first 100,000 square meters of leasable industrial space completed by 2020.
  28. 28. The company, a joint venture of Mang Inasal founder Edgar J. Sia II’s Injap Investments, Inc., Simon Paz’s Staniel Development Corp. and Carlos Chan’s Liwayway Marketing Corp., formally launched Hotel 101-Manila, taking advantage of the demand from the lower-end segment of the travel and tourism market.
  29. 29. Through its subsidiary CSI Hotels, Inc., HOA became the Philippine master franchise holder for Jinjiang Inn in 2011, after signing the deal with China’s largest hospitality conglomerate Jin Jiang Hotels.
  30. 30. The collaboration between DoubleDragon Group and Chef Margarita Forés, Islas Pinas is a project that aims to inspire love for the Philippines and to cultivate patriotism by showcasing the country’s beautiful sites and diverse regional cuisines.
  31. 31. TONY TAN CAKTIONG “If you dream big and put your dreams into action, you will definitely make mistakes. But don’t be scared to make mistakes. Just be quick to recognize them and learn from them as fast as you can.”
  32. 32. Entrepreneur of the Year Philippines, 2004; Ernst and Young Entrepreneur of the Year World, 2004; Gawad Mabini with the rank of Commander (Dakilang Kasugo), 2016
  33. 33. Milestones 1975 1978 1980 Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This will later become the 1st Jollibee Outlet Jollibee posts 1st year sales of P2 million. Jollibee is incorporated as a 100% Filipino-owned company, with seven Jollibee fast food restaurants within Metro Manila as its initial network. The Yumburger becomes its first flagship product. Jollibee’s Chickenjoy and French Fries are launched. The well- loved Jollibee mascot is conceived to support brand awareness and identity efforts. Other mascots are later introduced.
  34. 34. 1985 Jollibee becomes the market leader in the fast food industry. Breakfast Joys are introduced. The “Langhap-Sarap” campaign is awarded as the most effective ad campaign in the food category during the 9th Philippine Advertising Congress. 2000 31 more Jollibee stores open, bringing the total to 381 stores. Jollibee acquires Chowking . For the 3rd straight year, Far Eastern Economic Review ranked Jollibee as the Philippines’ leading company. Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia, surpassed only by global giants General Electric and Microsoft. JFC’s system-wide sales reach P20 billion. 1986 Jollibee wins the 9th International Foods Award from El Comestible in Barcelona, Spain. Tony Tan wins the Agora Award for entrepreneurship given by the Philippine Marketing Association. The Philippine’s Top 250 Corporations list includes Jollibee Foods Corporation. Jollibee adds Chunky Chicken Sandwich in its menu.
  35. 35. 2014 Jollibee is named Outstanding Food Retailer-Large Category at the Philippine Retailers’ Association Awards. Jollibee is included among the top 10 international fast food restaurants in the United States by The Daily Meal. Jollibee is hailed as “best international restaurant chain” by US-based food and lifestyle website, Thrillist. JFC’s stock price reaches the P200-level. Jollibee’s official Facebook account breaches 1 million likes from Facebook users.. 2015 Jollibee opens its 900th Philippine store in Palo, Leyte. Jollibee reaches its 1000th store as it opens its first store in Dubai, UAE. Jollibee opens its first store in Bahrain. 1000th
  36. 36. “ ” PRESIDENT DUTERTE’S PERSONAL GUARANTEE TO INVESTORS
  37. 37. SECRETARY RAMON M. LOPEZ DEPARTMENT OF TRADE AND INDUSTRY

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