The Philippines is an archipelago of over 7,000 islands located in Southeast Asia. It has a population of over 103 million people and its major languages are English and Filipino. The economy relies heavily on electronics exports, BPO services, tourism, and remittances from overseas Filipino workers. While the economy has grown in recent decades, it still faces challenges such as reducing poverty, unemployment, and income inequality. The Philippines has a developing market economy and seeks to attract more foreign investment to support continued economic development.

1. PHILIPPINES
GROUP – 3
ANKIT ROY
INDER DEEP SINGH
JIVITESH PATRA
SURBHI KHANNA
VIJAY KRISHNAN
VIDHI GUPTA

3. GEOGRAPHY

4. • Location – South
East Asia.
• Group of 7107
islands
• Size- 300,000 sq kms
• Neighbors- China,
Taiwan, Malaysia,
Indonesia, Vietnam.

5. NATURAL
RESOURCES

6. DEMOGRAPHICS

7. Population 103,775,002
Population 1.873%
growth rate
Literacy rate 95.9%
Birth rate 25/1000
Inflation 3.8
GDP 3500
Unemployment 7.3
Languages English &
filipino

8. Population 103,775,002
Population 1.873%
growth rate
Literacy rate 95.9%
Birth rate 25/1000
Inflation 3.8
GDP 3500
Unemployment 7.3
Languages English &
filipino

9. Population 103,775,002
Population 1.873%
growth rate
Literacy rate 95.9%
Birth rate 25/1000
Inflation 3.8
GDP 3500
Unemployment 7.3
Languages English &
filipino

10. Population 103,775,002
Population 1.873%
growth rate
Literacy rate 95.9%
Birth rate 25/1000
Inflation 3.8
GDP 3500
Unemployment 7.3
Languages English &
filipino

11. Population 103,775,002
Population 1.873%
growth rate
Literacy rate 95.9%
Birth rate 25/1000
Inflation 3.8
GDP 3500
Unemployment 7.3
Languages English &
filipino

12. Population 103,775,002
Population 1.873%
growth rate
Literacy rate 95.9%
Birth rate 25/1000
Inflation 3.8
GDP 3500
Unemployment 7.3
Languages English &
filipino

13. VOLCANOES
• 37 volcanoes of which
18 are active volcanoes
• Till now 47 eruptions
• 1993- 68 people died
and 60,000 had to be
evacuated.

14. HISTORY

15. Pre-Spanish Period
(52000BC – 1521AD)

16. The Spanish Period
(1521AD-1898AD)

17. The Philippine Revolution
(1896AD-1898AD)

18. The American Period
(1898AD- 1945AD)

19. Post-Independence Period
(1946 onwards)

20. Post Independence(1946 onwards)
The Marcos Era (1965-86)
• Dominated the political
scene for two decades
• Declared Martial Law
in 1972
• February 25, 1986:
EDSA People Power
Revolution
Ferdinand E. Marcos

21. AQUINO YEARS AND AFTER
Benigno Ninoy Aquino
Corazon Aquino
(Senator during Benigno Noynoy Aquino III
(President: 1986-1992)
Marcos rule) (President: 2010- Present)

22. POLITICS

23. LEGISLATIVE HISTORY
1.First Republic (Revolutionary Government/ The
Philippines under Spanish rule)
2.The Second Republic, 1943
3.Restoration of the Philippine Commonwealth,
1945 – 1946
4.The Third Republic, 1946 – 1972
5.The Fourth Republic, 1972-1986
6.The Fifth Republic, 1987 – present
(2010-Present) President: Benigno Simeon "Noynoy"
Cojuangco Aquino III

24. PRESENT POLITICAL SYSTEM
The Electoral system -Single-ballot plurality vote
Existence of legislative districts and local government units
Electorate: duly registered citizens 18 years of age and above
Political parties in the Philippines
•Multi-party system
•Parties must work with each other to form coalition governments.
•The Commission of Elections (COMELEC)
Independent Agencies – Securities and Exchange Commission

25. SOCIO-CULTURAL

26. Culture: Blend of the
Malayo-Polynesian and
Hispanic
Ethnic Make-up: Christian
Malay 91.5%, Muslim Malay
4%, Chinese 1.5%, other 3%
Religions: Roman Catholic
83%, Protestant 9%, Muslim
5%, Buddhist and other 3%
The San Agustin Church in Manila

27. Dances: Tinikling and
Carinosa.
Music: Filipino rock, hip
hop
Architecture: Nipa hut
main stream of housing.
Language: Filipino(Tagalog)
Sports: Arnis

28. INDUSTRY
&
TRADE

29. Source:http://www.boi.gov.ph/statistics.html

30. KEY GROWTH INDUSTRIES
1. CALL CENTERS AND BPOs
• Fastest-growing segment of the economy.
• Cornered 15 percent of the global BPO
market
• The call center workforce hit 442,000 by
end-2011.
2. INFRASTRUCTURE & GOVERNMENT PROJECTS
• Through PPP, plans are to develop expressway
from Manila straight to Cagayan Valley in
Northern Luzon for $100 million.
• The government has plans to use the old train
path of the Philippine National Railways to link
the North Luzon and South Luzon expressways.

31. 3. TOURISM & RELATED BUSINESSES
• Tourism industry has a variety of
niches that are still 'hot' until now, so
it"s definitely an advantage (the
country has over its neighbors).
• The government is planning to build
four "truly world-class" international
airports in each major regional area.
4. MANUFACTURING PRODUCTS FOR EXPORT
• Major Exporter Of Electronic Products
Like Processors, Chips And Hard Drives,
Apparels & Clothing accessories.
• Exports Were Worth 4314 Million USD In
June Of 2012.

32. EXPORTS
Exports = 4314 Million USD in June of 2012.
Historically, from 2002 until 2012, Exports averaged 3681.10 Million
USD reaching an all time high of 5325 Million USD in September
of 2010 & a record low of 3506 Million USD in February of 2009.
2000’s Source: http://www.tradingeconomics.com/philippines/exports

33. MAJOR EXPORT
 Electronic products like
processors, chips & hard
drives (more than 50% of
total exports revenues).
 Garments
 Coconut oil
 Furniture
 Transport Equipments
 Copper Products
 Fruits
Source:
http://www.tradingeconomics.com/philippines/exports

34. PHILIPPINES IMPORTS MOSTLY:
mineral fuels, lubricants,
transport equipment, industrial
machinery and equipment, iron
and steel.
Main imports partners are
Japan, United States, China,
South Korea and Singapore.

35. ECONOMY

36. 1950-60
Most progressive economy of Asia after
Japan.
Incentives to firms- domestic and
foreign.

37. RELATIVE PER CAPITA GDP

38. 1960-1980
1967- Investment incentive Act.
1970- Cronyism and Corruption
 Caused economic problems and social
unrest.
 Sept 1972- Martial Law declared.
 Crony Capitalism.
 Export Incentive Act.
 January 1973- National Economic and
Development Authority.

39. 1980-1990
 1980- Decline in export
 1981- Increase in national government
expenditure.
 Formation of Uni Bank
 Increase in bad debt.
 Foreign debt ballooned.
 “Sick Man of Asia”.

40. 1980-1990
1986- Aquino’s wife became president.
Emphasize on Privatization.
New tax reform- Export taxes were
eliminated.
IT simplified.
Luxury tax imposed.
10% VAT introduced.

41. 1980-1990
1987- New constitution formed.
 Land Reform introduced.
GDP increased from 3.5% in 1986 to 4.3%
in 1987
 6.6% in 1988.
 Earthquakes, natural disasters caused
power shortage leading to economic
activities.
 Investment Incentives system revised.

42. 1980-1990
1989- 43.9% of budget went debt servicing.
 1990- Privatization of electricity,
telecommunication and banking industry.
 1990-91 Persian Gulf crisis, petroleum
prices increased.
 The Oil Price Stabilization Fund put an
additional strain on the budget

43. 1990-2000
1996- GNP grew at 7.2% and GDP by 5.2%.
 Inflation rate drop to 5.9% from 9.1% in
1995.
 1998- Asian financial crisis.
 Fiscal deficit reached P49.981 billion
from surplus of P1.564billion in 1997.
• Peso depreciated from P29.47 to
P40.89 a dollar.
• GNP fell from 5.3% to 0.1%.

44. 1990-2000
 Joseph Estrada was
elected as President.
 Fiscal Deficit doubled
from P49 billion to
P100 billion.
 Corruption, cronyism.

45. INTERNATIONAL RELATIONS

46. INTERNATIONAL RELATIONS

47. FOREIGN INVESTORS
•UK, US and Japan are the primary
investors
•US – Invested in the power generation
sector
•UK – Planning to setup an aircraft
manufacturing unit (BEA)
•UK – Invested in banking and portfolio
management
•Japan – Strong trading partner

48. WHY TO DO BUSINESS IN
PHILLIPINES
•Phillipines features in the Next 11
(Beyond BRICs) report of Goldman
Sachs
•Also featured in 3G countries
(Global Growth Generator)
•It had shown economic stability
during the Asian crisis of 1997
•Touted to become the 14th largest
economy by 2050

49. WHAT BUSINESS TO DO
Percentage Applicable Businesses
of Foreign
Equity
Upto 25% Private recruitment companies, Contracts for
locally funded public work,
Contracts for construction of defense related
structures
Upto 30% Advertising
Upto 40% Exploration, development & utilization of natural
resource,
Educational institutions, Private lands, Public
Utilities, Gambling, Domestic Market Enterprises
Upto 60% Financing companies and Housing companies
(Regulated)

50. COMPARING WITH BRICS
Paid-in Min.
Cost (% of
Emerging Procedures Capital (% of
Time (days) income per
Economy (number) income per
capita)
capita)
Brazil 13 119 5.4 0
China 14 38 3.5 100.4
India 12 29 46.8 149.6
Philippines 15 35 19.1 5.2
Russian
Federation 9 30 2 1.6
South Africa 5 19 0.3 0
Source: http://www.doingbusiness.org/data/exploreeconomies/philippines/starting-a-business

51. THINGS TO FOLLOW: BASIC
ETIQUTTES
• Schedule business meeting one month in
advance
• Customary to offer business card first
• Greet the oldest member in the group
first
• When you are offered light refreshments,
never offend by declining
• If you are going to gift, pack it
attractively.

52. FACTS & TRIVIA ABOUT
PHILIPPINES
• There are more than 10 million Filipinos living overseas, of this,
about 8 million are OFWs or Overseas Filipino Workers of which
around 1.5 million are contractual workers.
• The karaoke is a Filipino invention. It was invented by Roberto del
Rosario. He called his invention "Sing-Along-System", which was
later called karaoke.
• The Philippine flag is the only flag in the world that is displayed
upside-down when the country is in war.
• The Philippines is considered the "text capital of the world“
• 488 coral species out of the known 500 coral species worldwide
are found in the country.
• The Ramon Magsaysay Award is named after famous Filipino
President Ramon Magsaysay.

53. THANK YOU