- The Philippines has a booming economy due to steady foreign investments, increased consumer spending, and government initiatives.
- Business process outsourcing (BPO), manufacturing, construction, and hospitality are favored industries.
- Low labor costs, economic stability, and government incentives attract foreign investors.
- English proficiency, low business costs, and strategic location also benefit the country.
- Real estate, manufacturing, technology services, and food are some of the best industries to invest in.
The Philippines has experienced a sustained economic boom in recent years, making it an attractive destination for foreign investment. Located in Southeast Asia, the country offers a young, educated population, a competent workforce, and a rich cultural heritage. With low labor costs, economic stability, and government incentives, the Philippines has become a favored destination for Western investors looking to expand their business. Here’s what you need to know about this and how to get started in your investments.
The Growing GDP of The Philippines
The GDP of the Philippines is one of the fastest growing in the Southeast Asian region. The country’s GDP is estimated to have increased by 6% this year. The growth is attributed to the steady inflow of foreign investments, increased consumer spending, and government initiatives. Here are some reasons why the Philippines is a haven for investors and the best industries you can invest in.
Booming Business Climate
The Philippines has become an economic powerhouse in Southeast Asia, with a GDP growth rate of 6.2% in 2018. There is currently a vast supply of manpower and low labor costs relative to other Asian countries. Business Process Outsourcing (BPO), manufacturing, construction, and hospitality are favored industries.
English Proficiency
With nearly two decades of American occupation, the Philippines has a robust English-speaking culture. It is ranked as one of the top English-speaking countries in Asia. This proficiency has benefited the country in attracting foreign investors that require a knowledgeable and accessible labor force.
Low Business Costs
With a stable economy and low inflation, business costs in the Philippines are comparatively low. For instance, real estate prices can be 20-30% lower than most Southeast Asian cities. Moreover, electricity and utility prices are also lower.
Government Incentives
The Philippine government has been actively incentivizing foreign investors to attract foreign capital. These include tax incentives, exemptions, and other financial benefits to investors who establish their operations in the Philippines.
Strategic Location
The Philippines is strategically positioned at the heart of the Asia-Pacific region. With a large consumer market accessible to all central economic locations within an 8-hour flight time, the country is connected to businesses that span the East and the West.
Best Industries You Should Put Your Money In
Choosing the right industry can ensure you get all the advantages above for your investment. Here are some of the best industries in the Philippines you should invest in.
Real Estate
One of the fastest-growing industries in the Philippines is real estate. Steady economic growth, ample land availability, and a continuously growing population have increased demand for housing and commercial buildings, making it an attractive sector to invest in. To purchase the right home, consider checking out brands like Arden Botanical Estate in The Philippines. These brands often feature top-notch amenities and green living initiatives, such as solar panels and water conservation systems.
Manufacturing
The manufacturing sector in the Philippines is booming due to its location and low labor costs. Companies often shift their operations to the country for cheaper production of goods. The electronics industry has been particularly booming, with hundreds of international corporations setting up shop in the country.
Technology
The Philippines is becoming a hub for technology and information-based businesses. With a robust network of skilled professionals, the country is becoming an attractive destination for tech startups and multinational companies. Some of the most prominent tech companies in the region include Globe Telecom, Smart Communications, and Accenture.
Services
One of the biggest draws of investing in the Philippines is its business process outsourcing (BPO) industry. The country is now one of the most sought-after destinations for BPO services, with over 1 million employed in the sector. Companies often move their call centers and other customer service operations to the region to take advantage of lower labor costs and a more efficient workforce.
Food
Lastly, food is one of the best industries in the Philippines to invest in. With a large population and culturally diverse cuisine, restaurants have become a lucrative investor sector. Several successful fast-food chains have established their presence in the country, such as Jollibee and McDonald’s. For more traditional fare, numerous local restaurants are offering unique takes on Filipino dishes.
Investing in the Philippines can be a great way to capitalize on the booming economy and reap the benefits of being in Southeast Asia. Low costs, an educated workforce, a strategic location, and more make it an attractive destination for foreign investors. Make sure to choose the right industry and research before taking the leap.
