PHIILIPPINES

A BUSINESS AND INVESTMENT ENVIRONMENT INTRODUCTION

Quick Facts
REPUBLIC OF THE PHILIPPINES

Capital: Manila

Government Type: Republic (Democracy)

Area: 300,000 sq.km.

Population: 99,900,177 (July 2010 estimate)

- country comparison to the world: 12

Religion: Roman Catholic 80.9%, Muslim

5%, Evangelical 2.8%, other Christian 8.8%,
other 1.8%, unspecified 0.6%, none 0.1%

Literacy: 94.6%
Quick Facts
Investments: 14.3% of GDP

GDP: $324.4 billion (purchasing power

parity)

Labor force: 37.89 million

Graduates per year: 405,000

GDP Composition: agriculture 14.9%,

industry 29.9%, services 55.1%

Industries: electronics, assembly,

garments, footwear, pharmaceuticals,
chemicals, wood products, food
processing, petroleum refining, fishing

Economic Snapshot
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Philippine economy posted 7.8% GROWTH

FOR Q1 2010 AND 7.9% for Q2 2010
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- Inflation has dropped to 3.5% as of

August 2010, from a high of 4.4%
within the year, 7.3% in February of
2009 and a peak of 12.5% in August
2008
The Philippine Peso has been
consistently strengthening against
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Investment Climate
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Philippine Investor Confidence in Q2 2010

Surges to Highest Rating in Two Years, 204% growth in investments from the same period
with a score of 157/200. 157 borders in 2009
between Optimistic ann Very Optimistic

Total Investments 2009 PHP 314.11 Billion

This is sustained for Q3 – ING Bank -
Investor Dashboard Survey
Investments 2010 1st Semester = PHP 264.38
Billion
 an N-11 Economy

Goldman Sachs predicts the rise

of the N-11 Economies after the
BRIC countries.

The Philippines is one of the

N-11 countries.

UK-Philippines Economic Relations Outlook

UK Exports to Philippines in 2009 - £258m

increase of 11% on 2008.

The UK is the largest investor in the Philippines

for the past decade with combined investments
of £6.6 billion from 1999-2009.

The UK remains as the largest European Investor

in the country to date.

The Philippines, with over 92 million people, is

also one of the largest markets in Southeast Asia
and the 12th largest country in the world in terms
of population. The economy is projected to grow
by 5 - 6% in 2010.

-http://www.ukti.gov.uk/export/countries/asiapacific/
World Class Human Resources
37.89 Million-strong labor force

94.6% Literacy rate

70% fluency in English

405,000 University/ College graduates per

year

(101,000 IT / Computer Science

Graduates, 111,000 Business
Graduates and 73,000 Medical &
Allied/ Natural Sciences Graduates)

English speaking – The Philippines is the

world’s third largest english speaking nation.

Exported and highly sought worldwide PHILIPPINES: WINNER

OFFSHORING DESTINATION OF
THE YEAR 2010, 2009 AND 2007

Established Infrastructure and

Telecommunications Networks
EXTENSIVE INFRASTRUCTURE
EXPANSION & SUPPORT

9 International Airports
20 Domestic Airports
3 Railway lines in Metro Manila
12 Roll on/Roll off ports/ marine highways
Newly constructed (major) expressways

ESTABLISHED TELECOMMUNICATIONS
SYSTEMS AND NETWORKS

completely deregulated
International connectivity and expanding
multimedia Infrastructure

high volume capacity for voice

Strategic Location
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The Philippines borders Asia Mainland and the
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Pacific Ocean.

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Convenient Access to the 550 Million-strong
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ASEAN Market
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Reachable within 4 hours by plane from other key
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Asian Cities
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Regional Hubs in neighboring ports and countries
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such as Singapore, Hongkong and Tokyo provide
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numerous travel options.

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Flying Times from key Asian cities:
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•Seoul - 3.5J hours
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hours
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hours

Abundant Resources, Tropical

Climate & Amazing Destinations
Unmatched Government
Incentives & Support
4 to 8 years Income Tax Holiday

Special 5% tax rate on gross income after the

lapse of the Income Tax Holiday for Economic
and Special Zone locators

Tax and duty exemption and Zero Duty on

qualified imported capital equipment

Exemption from 12% V.A.T on allowable local

purchase of goods and services

Unrestricted use of consigned equipment

Manufacturing 63
Employment of foreign nationals
IT Parks 127

Tourism 9
Working Visas, Special Investors’ Resident
Visas, Retirees’ Visas Medical Tourism Parks/ Centers 2

Agro Industrial Centers 6

Priority Sectors

Infrastructure & PPP

I.T. & Business Support Outsourcing

Tourism & Tourism Infrastructure

Green Projects & Renewable Energy

Electronics Manufacture

Sustainable Mining
www.investphilippines.org.uk

Philippine Trade and Investment Center - London

Embassy of the Philippines – Commercial Section
O!ce of the Commercial Attaché & Director
1A – Cumberland House, Kensington Court
London W8 5NX England
United Kingdom"
Telephone Nos.: """"+44 207 937 1898/ 7998 "
Fax Nos.: """"""""""""""+44 207 937 2747"
E-mail: """""""""""""""info@investphilippines.org.uk
Website: """"""""http://investphilippines.org.uk

Thank you very much!