Thinking about expanding your business on a global scale? Why not begin with the Philippines? Asia’s “Rising Tiger” as it is also known, is the new powerhouse to look out for this 2018. In fact, just this 2017, the country was hailed as one of the most preferred investments sites in the world by the United Nations Conference on Trade and Development (UNCTAD). This body of the United Nations is the one responsible for matters with regards to development issues, investments, and international trade.
If you are a business owner who is curious about expanding your venture to the Philippines, here is why it’s is a secure and profitable location for you to grow your company.
1. Fast Growing Economy
Still maintaining its place as the country with the fastest growing economy in the Association of Southeast Asian Nations (ASEAN), the Philippines has made its prospects look nowhere but up. The Philippines has also managed to top the ranks as the nation with the third fastest growing economy in Asia, closely nipping at the heels of China and Vietnam. You also need not worry about whether or not this growth will be sustained in the coming years. As the multilateral finance institution, World Bank, mentioned in their Global Economic Prospects report, this growth is predicted to continue for the next couple of years and will only taper off by 2% come the year 2020.
For firms expanding into a country with a growing economy, various benefits are also up for their taking. With economic growth comes improved public services, lowered government borrowing, increased investments, and additional development just to name a few. As the Philippines’ situation betters, expanding companies can easily partake in these positive aspects as well.
2. Renewed Focus on Infrastructure Development
With the current administration’s “Golden Age of Infrastructure” underway, the country’s economy is predicted to continue to grow all the more. The “Build, Build, Build” program, more commonly referred to as the BBB program, is expected to soon have a massive effect on the way the Philippines does business.This is due to the philosophy of infrastructure development and how it can spur economic growth. As former Philippine Senator Manny Villar has put it, building infrastructure like ports, railways, airports, and even the internet, and other communication facilities can connect and bring people together. This in turn, is good for businesses and as such, good for the nation’s overall progress and development (Read: The Golden Age of Infrastructure). Choosing to expand to the Philippines at this crucial time can help your company capitalize on the overall growth and national improvements.
3. Highly-Competent Labor Force
One of the country’s main claims to fame is that we house a handful of competent employees. With over 42.5 million people in the labor force, there will always be a substantial selection of qualified people to hire from. To add to that, a distinctive characteristic that Filipinos possess is their multilinguality. The high level of proficiency in English and the ability to speak it with a clear accent gives nonnative businessmen the ease of knowing that communication won’t be an issue. The Philippines is even known to be third largest English speaking country in the world, right after the United States and the United Kingdom. Many international companies choose to outsource their workforce here for this very reason, causing the nation's IT and BPO industry to thrive.
In addition, the quality of education in the Philippines also matches the global standards. Many of the courses and methods being taught in the country, particularly business, accounting, engineering, and medicine, follow the structure of leading countries such as the United States, United Kingdom, and Australia among others. This gives Filipino graduates an advantage when it comes to being knowledgeable at their chosen careers.
4. Unparalleled Hospitality
In addition to the previous point, Filipinos are famous for their hospitality. Politeness and respect in the workplace are some of the most prominent practices in the Filipino business culture. Philippine business settings are often characterized with supportive family-like structure, ensuring employee growth and empowerment in the office. One can say that you’ll never experience the same brand of care and warmth elsewhere. This unique combination of ability and geniality definitely sets Filipino employees at par with some of the best in the world. Read more about the Filipino work culture here.
5. Cost-effective Rental Rates
The Philippines is known to have one of the lowest commercial rental rates in all of Asia (read more here). Whether you are establishing a manufacturing facility that needs to put up a large warehouse, an outsourcing company that needs a sizable office space, an offshore gaming company that needs to set up a medium-sized office, pricing will not be an issue as it is better than a lot of its Asian counterparts. No matter how large or small the size of your ideal space may be, you are sure to get it here for the best prices possible.
As the article linked above mentions, average office rental fees in Metro Manila consist of only Php1,680 or about $33.6 per square meter. This already includes the cost of taxes and management fees. The price is definitely a bargain when compared to the rates of those in Singapore, Tokyo, or Hong Kong. These three house some of the most expensive office spaces in the world, at $323 per square foot for the latter. In the Philippines, you’ll be sure to score a prime location with less than a fraction of the cost, the rest of which you can efficiently spend on other parts of your business.
Not only that but for a price still lower than standard quality buildings in other countries, a company can already procure for themselves a high-grade building in the Philippines. This is particularly true for buildings registered and approved by the Philippine Economic Zone Authority (PEZA), which generally offer full backup power, are fiber optic ready, have the proper density ratios (ratio of the number of square meters per employee), etc.
If you are curious on how to find the ideal office space for your company, check this article out here.
6. Acceptance of Foreign Investors and Entreprenuers
This is particularly exemplified in the current Duterte administration whose plans include the welcoming of more international companies. As of 2017, President Rodrigo Roa Duterte has ordered the National Economic Development Authority (NEDA) to lift or ease up on the restrictions placed with regards to certain investments and activities with foreign participation. Just one of these recommendations include the lowering of the foreign capital limit from $2.5 million to only $200,000. Should this be passed, retail enterprises with only $200,000 worth of paid-up capital will now be permitted to be fully owned by foreign incorporators, whereas before they had to be worth at least $2.5 million. As mentioned by Philippine Secretary of Socioeconomic Planning Ernesto Pernia, the opening up of the nation helps drive up the output of major business sectors in the country. This will not only streamline the process of your company’s registration but will also give you greater opportunities to dabble in even more business ventures.
With the booming economy and the great business environment, the Philippines is quickly becoming the “it” business center for international companies to explore. On account of this, the demand for office space continues to rise with an expected 8% increase, just this year alone. As such, there is no better time than the present for you to start your business expansion. The Philippines is definitely well on its way to establishing itself as a hub for businesses seeking to go above and beyond industry standards.
Locate your ideal commercial space easily with PRIME Philippines, the leading commercial real estate firm in the nation. For more information, visit our website https://www.primephilippines.com.