In the last two decades, the Philippines has strengthened its economy with the last quarter of 2019 registering a GDP of 6.7 percent, a notable increase from the previous year
The Republic of the Philippines has experienced tremendous growth in diverse sectors, mainly due to the strategic location, affordable yet talented labour, and ease of doing business.
The Philippines’ government has made significant efforts to overcome the language barrier by teaching English in all schools, and today it is the third-largest English speaking nation.
Before, you commence on setting up a company in the Philippines, here we must take a look at the numerous benefits of doing business in this South Asian nation:-
#1. Strategic Location
One of the biggest perks of choosing Philippines over any other South Asian country is mainly because of its apt strategic location. Situated in the heart of Asia, the Philippines is a popular destination for numerous Asian brands.
The country is located just four flying time distances from top players in Asia. Philippines is the entry point for 500 million ASEAN markets and an international shipping gateway. Even the American and European business has expanded its services in the Philippines.
#2 Business-Friendly Economy
The Philippines is a completely open economy with 100% room for foreign investors in just about every sector. The country supports the foreign investment Build-Operate-Transfer (BOT) investment scheme, which the majority of the Asian countries oppose.
The Asian giant has been privatizing the various government corporations in banking, shipping telecommunication, power industries, and insurance.
Several incentive packages are there in place to motivate entrepreneurs to translate their idea into a business. All the companies operating in the Special Economic Zones have to pay 5% in corporate taxes. The multinational brands that are in search of a regional headquarters can also be eligible for this incentive scheme. Plus, there are duty-free importations for several equipment & materials.
#3. A Consumer-Driven Nation
The best part about the Philippines is that it is a consumer-driven economy. This seems to be a major reason why the Philippines has been a preferred choice for global investors. There are various profitable markets in the Philippines that can interest foreign investors.
Filipinos are open to new ideas; if you’ve an innovative product that can solve the consumer problem, your business has enough scope in this country. People have a craze for innovation and technology, thus why so many global IT giants have their office in the Philippines.
#4. Natural Resources
There is an abundance of natural resources in the Philippines. So, the businesses operating in the manufacturing or construction industry don’t have to import crucial resources from other countries as the resources are available for lost costs in the country itself.
#5. Educated and Talented Manpower
The availability and cost of labour are two key factors global business investors take into account before expanding their services in a particular nation.
The Philippines tick this box as not only there is a qualified talent pool to recruit, but surprisingly they are affordable at all levels.
Recently, the Philippines made a drastic improvement in its World Talent Ranking 2019 and climbed six spots. Today, it is at 49th place in the list of the world’s most skilled workforce economies.
In the metro cities of the Philippines, the basic pay of an educated, salaried individual is around $30 US/day. And, in the suburbs, it further dips to $10.84-13 US/day.
The improved infrastructure is one of the critical factors that has helped Philippines to establish its identity on the global investment front. The government has taken significant measures to improve the road transport infrastructure and attract more foreign investments.
Did you know that the Philippines spends about 7% of its total GDP on enhancing its infrastructure?
In the year 2017, the expenditure on infrastructure rose to 15.4%, and it is still growing.
Seventy-five new flagship government projects are estimated to be completed by 2022. These projects include 12 rail, four water transport, six airports, and several other infrastructural projects.
If you are planning to launch your startup in the Philippines being a foreigner, you must seek the advice of a knowledgeable consultant to help you out with business registration online in the Philippines.