PTICSV 2013 Presentation

7/28/2019 PTICSV 2013 Presentation

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Philippines


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A BUSINESS AND INVESTMENT environment INTRODUCTIONPhilippines


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TextText

(1) Strong Stock Market

Business Climate


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(2) Stable and Resilient Economic Growth

Business Climate


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Business Climate

(3) Continuous Inflow of OFW Remittances


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Business Climate(4) Steady Investment Flows


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Business Climate(5) Robust Domestic Financial Sector Coupled

withCredit Growth


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Business Climate

(6) Efficient Revenue Collection


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Business Climate(7) Improving Global Competitiveness

Ranking


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Business Climate(8) Strengthened Governance & Anti-Corruption

Measures


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Business Climate(9) Dynamic People


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GETTING THE WORLDSATTENTION


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World Class Human


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64.1% labor force participation rate(2013) with 92% employment rate

95.4% Literacy rate --one of thehighest literacy rates in the world (ADB,2008)

70% fluency in English

500,000 college graduates per year

(100,000 IT / ComputerScience Graduates,111,000 Business Graduatesand 73,000 Medical & Allied/Natural Sciences Graduates)

Fluent in English The Philippines isthe worlds third largest englishspeaking nation.

Exported and highly sought worldwide PHILIPPINES: WINNEROFFSHORING DESTINATION OFTHE YEAR 2010, 2009 AND 2007

World Class HumanResource

Established Infrastructure &


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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

Established Infrastructure &Telecommunications Networks


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StrategicLocation

The Philippines borders Asia Mainland and thePacific Ocean.

Convenient Access to the 550 Million-strongASEAN Market

Reachable within 4 hours by plane from other keyAsian Cities

Regional Hubs in neighbouring ports and countriessuch as Singapore, Hongkong and Tokyo provide

numerous travel options.

Flying Times from key Asiancities:______________________________

Tokyo - 4 hours

Seoul - 3.5 hoursShanghai - 3.25 hours

Singapore - 3 hours

Hongkong - 2 hours


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Unmatched GovernmentIncentives & Support

4 to 6 years Income Tax Holiday Special 5% tax rate on gross income after

the lapse of the Income Tax Holiday forEconomic and Special Zone locators

Tax and duty exemption and Zero Dutyon qualified imported capital equipment

Exemption from 12% V.A.T on allowablelocal purchase of goods and services

Unrestricted use of consigned equipment

Employment of foreign nationals

Working Visas, Special InvestorsResident Visas, Retirees Visas

Manufacturing 63

IT Parks 127

Tourism 9

Medical Tourism Parks/ Centers 2

Agro Industrial Centers 6


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Investment Opportunities


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Priority Sectors:Investment Priorities Plan

2012 Agriculture/ Agri-business and Fishery

CreativeIndustries/Knowledge-Based Services

Shipbuilding

Mass Housing

Iron and Steel

Energy/ RenewableEnergy

Infrastructure

Research andDevelopment

Green Projects

Motor Vehicles

Tourism Investments

Strategic Projects

Hospital /Medical Services

Disaster Prevention,Mitigation and RecoveryProjects

IT Enabled & Business Support


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IT Enabled & Business SupportServices

IT E bl d & B i S t S i


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IT-Enabled & Business Support ServicesDiversification of the Industry

Energy & Renewables


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Energy & Renewables Bio-Fuels (Bio-Diesel & Bio-Ethanol) - The government targets

to implement a 1% CME blend with diesel fuel for vehicles in2007, to reach 2% in 2009; and 5% ethanol blend with gasolinefuel for vehicles within 2007-2009, to reach 10% in 2011.

Hydropower - Indicative Hydropower potentials are currently at2,400 MW

Geothermal - The Philippines is 2nd only to the US in terms ofGeothermal Energy potential reserves. With only 1,931 MW

installed out of 2,047 MW proven geothermal reserves and 4,790MW potential reserves, there are obviously plenty of opportunitiesfor expansion and private sector involvement.

Wind Energy - Comprised of 7,107 Islands, the Philippines hasmaximum potential for wind energy generation. 16 wind powersites were offered to private investors during the 1st windcontracting round with a potential capacity of 345 MW.

Solar Energy - Opportunities abound in Micro and Small-sizedSolar Energy Plants from 1MW-5W.

Compressed Natural Gas - Minimum investment requirementsof about $4.0B between 20062014

*Feed-In Tariff Rates make Renewable Energy Generation now more attractive for

investors

Resource Extraction &


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Resource Extraction &Sustainable MiningLocated in the Ring of Fire

5th most mineralized country in theworld (2nd in Gold, 4th in Copper,5th in Nickel, 6th in Chromite)

Established reserves of 13 knownmetallic and 29 non- metallicminerals (Mines & GeosciencesBureau)

RP has 9 million hectares ofmineralized land

Only 420,000 hectares havemining permits. 8.6 million

hectares still awaiting for the

Public Private


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Public-PrivatePartnership A Social Contract with theFilipino People

All transactions aretransparent & above board

Consultative view on privatesector areas of concern

Protection of public interest

Private Sector, an importantrole in nation-building

Indispensable roleprivatesector as partner indevelopment

Public Private Partnership:


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Public-Private Partnership:Eligible Projects


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Tourism Investments

*Tieza Law - provides incentives that facilitate investments


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Other Key Sectors

Electronics


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Electronics Electronics make up 61% of Total Philippine Merchandise Exports

Electronics exports was at US$6.75 Billion in 2011, an increase of 5.55%from previous years US$6.40 Billion

Economy less dependent on Electronics Exports

2011: Electronics exports decreased by 23.7% due to Global Down-turn,but overall decrease in exports was only 6.9% at US$47.8 Billion.


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WHO ARE WITH USIN ELECTRONICS?

Fi


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Firms


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hip-BuildingShipbuilding- Shipbuilding (design,construction, outfitting &

launching any type of ship).Shipbuilding giants, Japanese

Tsuneishi and Korean Hanjin are

successfully operating in the

Philippines. There is room for

more.

Ship repair

conversion, overhaul,alteration, modification or repair

of hull, machinery, equipment,

outfits and components of any type

of ship

Shipyard operations

Shipping

- Domestic shipping - Overseas

shipping

Sea-faring/ Manning


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www.investphilippines.org

PhilippineBizSF facebook.com/pticsv

CONTACT US
http://www.investphilippines.org.uk/http://www.investphilippines.org.uk/


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E PHILIPPINE TRADE AND INVESTMENT CENTER IN SILICON VALL

FOR THE US NORTHWEST AND WESTERN CANADA

Thank you!Maraming Salamat

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PTICSV 2013 Presentation