It’s not a stretch that among the 7,107 islands- this country known for warm smiles and fiestas and tropical beaches is more than just a tourist destination. Here are the top reasons why investors (foreign and local) should keep an eye on the growing and developing industrial proletariat runway – The Philippines.
1. Its prime location
Strategically located in the fastest growing Asia-Pacific region, the Philippines is the newest investment hotbed – a natural gateway to the East and West economies. Its location plays a very significant role to over 500 million people in the ASEAN market. More importantly, it is placed at the crossroads of international shipping and airlines. Along with its membership to the Association of Southeast Asian Nations (ASEAN) Free Trade Agreement, these factors enable the Philippines ripe for investment opportunities from all over the world.
2. Its highly educated, literate and competent workforce
Filipinos give importance to education having it produce an exceptional multi-talented and skilled worker to meet global needs. Government invest on education and learning programs that are set to international standards. Thus, this has made Filipinos rank as the third largest English-speaking nation in the world. Apart from that, Filipinos are among the fastest learners in the world, taking only half the time to train as compared to other nations.
3. Its low cost of doing business
Doing business in the Philippines is significantly lower than in other countries. From a very affordable labor cost, to communication and operating costs, it generates big savings to businesses and investors. Research shows that labor cost are less than a fifth of that in the US. Costs such as electricity, local transportation and communication, housing are 50% lower compared to US. Foreign companies that are in outsourcing programming and business processes, call-center services and application systems, and software development enjoyed up to 50% business cost savings.
4. Its unique environment
Known to its friendly people, warm and tropical climate, growing economy and affordable cost of living, the Philippines has been considered by many expats as their second home. Expats also enjoy accessible and affordable luxuries, shopping malls, recreation centers, white sand beach resorts. The country’s openness to varied cultures from east to west part of the world, makes it more fun in the Philippines.
5. Its liberalized and business-friendly economy
There are 277 operating economic zones in the Philippines that offer incentives for investments. For foreign companies that are PEZA-registered, incentives include 100% exemption from corporate income tax or Income Tax Holiday (ITH). Upon expiry of the ITH, 5% special tax on gross income and exemption from all national and local taxes. Tax and duty-free importation of raw materials, capital equipment, machineries and spare parts. Free from VAT for local purchases, subject to compliance with BIR and PEZA requirements.
6. Its tourism and abundant resources
Home to 7,107 islands boast of beautiful beaches and breathtaking sceneries that offer soothing leisure and relaxation spots for vacationers and tourists, the Philippines ranks as one of the most-visited tourist destination in the world. It offers diverse natural resources from land to marine to mineral resources.