Focus on Philippines investment immigration and the Philippine economic environment: In 2014, the Philippines attracted $4.2109 billion in foreign direct investment, with 59% injected into manufacturing, 16% into services, and 9% into real estate development. Foreign direct investment from Japan was the highest at $808.3 million, accounting for 19.1% of total foreign investment; followed by the Netherlands at $738.5 million and the United States at $392.5 million.
The political and economic situation in the Philippines has undergone a transformation in recent years. With a stable political environment, the Philippine economy is booming. Coupled with a population of 100 million, it is gradually attracting the attention of potential international investors. While there are broad investment opportunities, certain challenges also exist.
The center of gravity of the world economy is gradually shifting toward Asia. However, as mainland China faces economic structural transformation, foreign capital has begun to look for alternative investment locations. The ASEAN Economic Community (AEC) is set to be formed by the end of 2015, significantly increasing the attractiveness of emerging ASEAN markets.
Over the past three years, the average economic growth of the Philippines has approached 7%, second only to mainland China in the region, and several international credit rating agencies have upgraded the Philippines' credit rating to "investment grade."
In addition, the stock market recently surged to over 8,000 points, and foreign exchange reserves have increased from $15.5 billion in 2005 to $80.8 billion as of February this year. Some analysts point out that among ASEAN member states, although Vietnam has high efficiency in investment promotion, it faces problems such as corruption, inflation, and significant currency fluctuations; Indonesia has a population of 200 million with strong domestic demand, but its social climate is tough, and one must consider whether past anti-Chinese sentiments still persist. Malaysia's demographic structure is already mature, with labor shortages and relatively high wages; Brunei is too wealthy, making it difficult to hire employees, and its religious and living customs differ from those of the Chinese.
The Philippines has a population of over 100 million, ranking second among ASEAN countries. It possesses an abundant, young, and high-quality labor force. Annual remittances from overseas Filipino workers are staggering; last year alone, they reached as high as $26.9 billion, supporting private consumption.
Furthermore, among ASEAN organizations, the Philippines is the only country that enjoys the European Union's Generalized Scheme of Preferences. Lan Ke-ming, director of the "Manila Taiwan Trade Center" at the Taiwan External Trade Development Council, also stated, "From the perspective of foreign investment and manufacturing, the Philippine market has its opportunities." Lan analyzed that Cambodia has a population of only 15 million, and wages have risen for two consecutive years, making it no longer suitable as a labor-intensive base; Myanmar's political situation is still unstable, and its geographical location makes raw material supply difficult.
Although the Philippines has a large impoverished population, thanks to strong remittances from overseas and the income earned by young professionals in service industries such as call centers, business process outsourcing, and the gaming industry, their purchasing power remains impressive. Therefore, the domestic market is a sector worth exploring and capturing.
A Taiwanese businessman who has lived in the Philippines for decades said that Filipinos have strong family values, which is why many overseas Filipinos send money home to support their relatives. Filipinos do not have a strong sense of saving, and remittances are almost entirely converted into consumption, which can be easily seen from the bustling shopping malls and heavy traffic.
In fact, according to the "2015 World Billionaires List" released by Forbes magazine in March, among the top 10 richest people in the Philippines, three operate shopping malls or affordable retail channels, and one operates a fast-food chain.
Philippine President Benigno Aquino III has been vigorously cracking down on corruption, with many large-scale infrastructure projects being implemented and investment restrictions gradually being relaxed. The previous dilemma of insufficient manufacturing supply chains has also improved. However, a businessman who requested anonymity pointed out that one cannot only look at the bright side; the investment environment in the Philippines still faces challenges. This businessman said that there are many hurdles to investment in the Philippines, infrastructure is lagging, the transportation network is underdeveloped, and government efficiency and social security still need to be improved. Additionally, restrictions on foreign ownership of land and other corporate equity deter some foreign investors.
Regardless, the Philippines, once known as the "Pearl of the Orient," has shown momentum to shine again in recent years. Although opportunities and challenges coexist, officials from the representative office in the Philippines believe that as long as sufficient information is gathered in advance, investing in the Philippines remains highly promising.
