Philippine Business Opportunities -

Philippine Business Opportunities -

GMA’S State of the Nation Address,2001:GMA’S State of the Nation Address,2001:

“We will enhance the competitiveness of the “super-regions - North Luzon Triangle, Metro Luzon Beltway,

the Central Philippines, and the Cyber Corridor.”

• “. . .so, we have undertaken 5 strategies to attain competitiveness:

• Food affordability/availability• Power cost reduction• Modernize infrastructures• Mobilize, upgrade knowledge/technologies• Reduction of government red tape

“We will enhance the competitiveness of the “super-regions - North Luzon Triangle, Metro Luzon Beltway,

the Central Philippines, and the Cyber Corridor.”

• “. . .so, we have undertaken 5 strategies to attain competitiveness:

• Food affordability/availability• Power cost reduction• Modernize infrastructures• Mobilize, upgrade knowledge/technologies• Reduction of government red tape

RP’s FDI agenda beyond 2007RP’s FDI agenda beyond 2007

Increase FDI by USD 9 billion annually & create 1 million jobs in 6 major sectors:

ENERGY, POWER & BIOFUELS INFRASTRUCTURE –SUBIC, BATANGGAS

CORRIDORS HEALTHCARE, RETIREMENT & TOURISM IT/ITES MANUFACTURING MINING

Increase FDI by USD 9 billion annually & create 1 million jobs in 6 major sectors:

ENERGY, POWER & BIOFUELS INFRASTRUCTURE –SUBIC, BATANGGAS

CORRIDORS HEALTHCARE, RETIREMENT & TOURISM IT/ITES MANUFACTURING MINING

End result - for global business to appreciate RP business potentials -

End result - for global business to appreciate RP business potentials -

Services is major driver-component;a priority of the GMA Administration

Fiscal reforms are kicking in; We now have the funds to spend on

infrastructure, education, and programs to enhance our competitiveness

RP is still LOW-COSTMarket analysts and institutional investors

response: - “from cautiously bullish to very bullish”

Services is major driver-component;a priority of the GMA Administration

Fiscal reforms are kicking in; We now have the funds to spend on

infrastructure, education, and programs to enhance our competitiveness

RP is still LOW-COSTMarket analysts and institutional investors

response: - “from cautiously bullish to very bullish”

Domestic Stabilization- Macro Indicators

Domestic Stabilization- Macro Indicators

  2004 2005 2006 2007 2008 2009 2010

Gross National Product 5.2-6.0

5.5-6.4

6.5-7.5

6.9-7.8

7.0-8.0

7.2-8.2

7.2-8.2

Gross Domestic Product 4.9-5.8

5.3-6.3

6.3-7.3

6.5-7.5

6.8-7.8

7.0-8.0

7.0-8.0

Fiscal Balance (% of GDP) -4.2 -3.6 -2.9 -2.0 -1.1 -0.2 0.0

Inflation Rate 4.0-5.04.0-5.0

4.0-5.0

3.0-4.0

3.0-4.0

3.0-4.0

3.0-4.0

Unemployment Rate 12.1 11.0 11.6 11.1 10.4 9.7 8.9

Poverty Incidence (families) %

25.69-26.04

24.35-

25.04

22.93-

23.95

21.61-

22.89

20.31-

21.84

19.04-

20.78

17.88-

19.81

Other Indicators Other Indicators

GDP 1st quarter: 5.5% (target for 2006: 5.5-6.2%)

Services: 6.2Industry: 5.5Agriculture: 3.8

Population growth rate: 2.36%

GDP 1st quarter: 5.5% (target for 2006: 5.5-6.2%)

Services: 6.2Industry: 5.5Agriculture: 3.8

Population growth rate: 2.36%

Source: United Nations Statistics Division

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China Philippines Thailand Vietnam

GDP GROWTH TRENDGDP GROWTH TRENDAt Constant 1990 PricesAt Constant 1990 Prices

Fiscal and Macroeconomic stability

Fiscal and Macroeconomic stability

Fiscal targets and achievements: balanced budget by 2008; P974.1B total revenue

target for 06 Reduction of fiscal deficit: 2004: -4.2%; 2006: -2.1%

7-mo. deficit for 2006: P48.5; (in 2005: P82.6B): Jan-Jul 06 revenues: P544.7B Jan-Jul 06 expenses: P593.2B

Budget deficit P31.6B for 1st semester 2006 Overshot target deficit for 1st quarter by P58.9B Government revenues increased 25% for first 6 months

of 2006 Income tax take up 14% in first 6 months On target to meet year-end deficit of P125B or 2% of

GDP (from 3.5%)

Fiscal targets and achievements: balanced budget by 2008; P974.1B total revenue

target for 06 Reduction of fiscal deficit: 2004: -4.2%; 2006: -2.1%

7-mo. deficit for 2006: P48.5; (in 2005: P82.6B): Jan-Jul 06 revenues: P544.7B Jan-Jul 06 expenses: P593.2B

Budget deficit P31.6B for 1st semester 2006 Overshot target deficit for 1st quarter by P58.9B Government revenues increased 25% for first 6 months

of 2006 Income tax take up 14% in first 6 months On target to meet year-end deficit of P125B or 2% of

GDP (from 3.5%)

Fiscal reforms are In Fiscal reforms are In Gov’t expenditure management:

Passage of Government Procurement Law (2004) Government rationalization programme (2005-

present) Implementation of Organizational Performance

Indicator Framework for all government agencies and instrumentalities (2005-present)

Compensation reform (ongoing)

Gov’t expenditure management: Passage of Government Procurement Law (2004) Government rationalization programme (2005-

present) Implementation of Organizational Performance

Indicator Framework for all government agencies and instrumentalities (2005-present)

Compensation reform (ongoing)

BALANCED BUDGET BY 2008BALANCED BUDGET BY 2008P Billion

NG fiscal balance accelerates to 2008 as revenue collection improves on account of the RVAT and tax administration measures

REDUCTION OF NGOVT DEBTto 46% of GDP in 2010

REDUCTION OF NGOVT DEBTto 46% of GDP in 2010

% of GDP

91-Day T-bill Rate falls to 4.86%91-Day T-bill Rate falls to 4.86%

Arroyo Legacy

LOW INTEREST RATES

FISCAL-DRIVEN EXCHANGE RATE

Deficit worsens 1.9 to 4.1%

Fiscal Reforms

Deficit hits 5.3%

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15

20

25

30

Jan-Jul 05 Jan-Jul 06

In B

illi

on

Pes

os

In B

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Pes

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NET FOREIGN BUYINGgrew by 72% in the first seven months of 2006

72%

““More and more foreign investors are entrusting their money to us (RP More and more foreign investors are entrusting their money to us (RP stock market). . . a clear vote of confidence in the country’s future.” - stock market). . . a clear vote of confidence in the country’s future.” -

Philippine Stock ExchangePhilippine Stock Exchange

Overall In, Prod and Global competitiveness

Overall In, Prod and Global competitiveness

Trade balance: (US$1.28) Total imports: US$19.97B (Jan-May 2006) Total exports: US$18.69B (Jan-May 2006)

Overseas Filipino remittances: US$10.3B (2005) Portfolio investments: US$106.3M (June 2006)

72% increase in foreign purchases Current account surplus: US$1.2B in 1st Q 2006 Revenues from Outsourcing (est 2006): $1.2B

Trade balance: (US$1.28) Total imports: US$19.97B (Jan-May 2006) Total exports: US$18.69B (Jan-May 2006)

Overseas Filipino remittances: US$10.3B (2005) Portfolio investments: US$106.3M (June 2006)

72% increase in foreign purchases Current account surplus: US$1.2B in 1st Q 2006 Revenues from Outsourcing (est 2006): $1.2B

Boosting In, Prod and global competitiveness

Boosting In, Prod and global competitiveness

Generated financial support from US, Millennium Challenge Account, APEC for anti-corruption and governance reforms

Positive global market perception on reform process: UBS Warburg study: fiscal reforms attract renewed interest;

bullish on RP S&P: RP to outperform its fiscal projection for 2006

FDI Q1 2006: P63.5B (P31.5 Q105) P59.6B in manufacturing: (94% of total approved FDIs) SBMA: P51.4B (81%) No. 1 investor: Korea at P51.7B (81%); USA: P 6.4B

(10%) Projected employment: 32,434 (98% increase)

Boost investments, productivity and global competitiveness

Boost investments, productivity and global competitiveness

Core inflation: 7.1%Rise in petroleum and energy costs… … but cheaper imports, sound wage

regulation, and restrained public expenditures

But RP is still LOW-COSTManila cheapest place to live; but low

income (wages) -Union Bank of Switzerland

Core inflation: 7.1%Rise in petroleum and energy costs… … but cheaper imports, sound wage

regulation, and restrained public expenditures

But RP is still LOW-COSTManila cheapest place to live; but low

income (wages) -Union Bank of Switzerland

Manila Among Top Ten Cheapest Cities

Manila Among Top Ten Cheapest Cities

Source: Prices and Earnings: A comparison of purchasing power around the globe (UBS 2006)

Methodology:Cost of weighted shopping basketcontaining 122 goods and Services (left column: gross; right column: net; New York=100)

Manila Among Top Ten Lowest Wages

Manila Among Top Ten Lowest Wages

Source: Prices and Earnings: A comparison of purchasing power around the

globe (UBS 2006)

Methodology:Effective hourly wages for 14 professions, weighted according to distribution, net taxes and social security (left column: gross; right column: net; New York=100)

Philippine Stock Exchange Index, 1989-PresentPhilippine Stock Exchange Index, 1989-Present

Other perks-- strategic locationOther perks-- strategic location

Located in the fastest growing outpost of high-tech economy

Gateway of international shipping and airlinesCritical entry point to the $500M ASEAN

marketAccessible by air within 4 hours from every

Asian capitalFrom 7-15 hrs time zone difference from

major markets allow for optimal operating turnaround; max 12-14 hours

Located in the fastest growing outpost of high-tech economy

Gateway of international shipping and airlinesCritical entry point to the $500M ASEAN

marketAccessible by air within 4 hours from every

Asian capitalFrom 7-15 hrs time zone difference from

major markets allow for optimal operating turnaround; max 12-14 hours

Other perks-- business efficiencyOther perks-- business efficiency

Big numbers of leading high-tech electronic and semiconductor export-- 67% of manufacturing exports

Big numbers of leading MNCs engaged in motor vehicle, distribution and logistics, telecoms, banking, professional services, outsourcing activities

Philippines - 4th most attractive relocation for production of semiconductors and electronics

Big numbers of leading high-tech electronic and semiconductor export-- 67% of manufacturing exports

Big numbers of leading MNCs engaged in motor vehicle, distribution and logistics, telecoms, banking, professional services, outsourcing activities

Philippines - 4th most attractive relocation for production of semiconductors and electronics

Other perks-- investment incentivesOther perks-- investment incentives

4-8 years Income Tax Holiday Special 5% tax rate after lapse of ITH for IT park

locators Tax and duty exemption on imported capital

equipment for IT park locators Unrestricted use of consigned equipment Deduction for labor expenses up to 150% Deduction for training expenses up to 150%

Exemption from wharf duties

4-8 years Income Tax Holiday Special 5% tax rate after lapse of ITH for IT park

locators Tax and duty exemption on imported capital

equipment for IT park locators Unrestricted use of consigned equipment Deduction for labor expenses up to 150% Deduction for training expenses up to 150%

Exemption from wharf duties

Advantages of Philippine human capital:

Advantages of Philippine human capital:

Skilled labor force of 29 million; low attrition rate 400,000 fresh college graduates every year in

business, engineering, and medicine – with English proficiency and at 94 % literacy rates

Competent senior managers Western-patterned educational system Strong work ethic, customer-oriented mindset,

easily trainable with a natural inclination for innovative and creative thinking

Superior, competitive educational infrastructure Adherence to global standards

Skilled labor force of 29 million; low attrition rate 400,000 fresh college graduates every year in

business, engineering, and medicine – with English proficiency and at 94 % literacy rates

Competent senior managers Western-patterned educational system Strong work ethic, customer-oriented mindset,

easily trainable with a natural inclination for innovative and creative thinking

Superior, competitive educational infrastructure Adherence to global standards

Services - BPO/KPOServices - BPO/KPO Employment, revenues, investments in RP services

sector to rise 42% in 2006 Outsourcing jobs to rise 44% Outsourcing Investments to rise 42% Outsourcing revenues to rise 52% Close to 120 outsourcing companies in RP No. of Service Providers: 62 Total full time employees: 225,000

Employment, revenues, investments in RP services sector to rise 42% in 2006

Outsourcing jobs to rise 44% Outsourcing Investments to rise 42% Outsourcing revenues to rise 52% Close to 120 outsourcing companies in RP No. of Service Providers: 62 Total full time employees: 225,000

Services (Accountancy)Services (Accountancy)

No of service providers: 60++ Total employees: 22,500 Filipino Registered CPAS: 113,300 (2005) Projected growth for 2006: 42% Key players: AIG, JP Morgan, Citibank, Accenture,

Thomson Financial, Shell, HSBC, HP, Alitalia, Chevron Texaco

No of service providers: 60++ Total employees: 22,500 Filipino Registered CPAS: 113,300 (2005) Projected growth for 2006: 42% Key players: AIG, JP Morgan, Citibank, Accenture,

Thomson Financial, Shell, HSBC, HP, Alitalia, Chevron Texaco

RP is LOW-COSTRP is LOW-COST

RP is still LOW-COST and increases are moderate:

core inflation at 7.1% wage inflation at 8% Low attrition pegged at 35% Average prime interest rates 2005: 8.5%

RP is still LOW-COST and increases are moderate:

core inflation at 7.1% wage inflation at 8% Low attrition pegged at 35% Average prime interest rates 2005: 8.5%

Reliable Infrastructure Support

• REAL-ESTATELow rates with liberal lease agreement termsMostly administered by international property

management companies• POWER

Stable with excess capacity over current demand

• TELECOMSDeregulated telecoms industry

East Asia80 Gbps North AsiaMalaysia

Singapore

C2C 160 GbpsNorth Asia

GPT 280 Mbps

North AmericaPacific

North AsiaEurope

APCN-1

5 Gbps

North AmericaPacificAsiaEurope

BMP560 Mbps

South East AsiaMiddle East

G-P5 Gbps

North AmericaPacificNorth AsiaEurope

SEA-ME-W

E 3

10 G

bps

PacificAsiaEurope

Philippines,Asia Pacificand Hawaii

AP

CN

-280

Gbp

s

North AmericaPacificNorth AsiaEurope

ACeS

Agila II

South andSE Asia

International Connectivity

Business opportunities are enhanced by ICT infrastructureBusiness opportunities are enhanced by ICT infrastructure

President’s priority initiative is to strengthen the “Cyber Services Corridor”

Clark Special Economic Zone to be transformed into a U$2B wifi

hot-spot zoneSM Group to complete P1.5B OneEcom

Center by July 2007 to address the ICT needs of BPO companies

President’s priority initiative is to strengthen the “Cyber Services Corridor”

Clark Special Economic Zone to be transformed into a U$2B wifi

hot-spot zoneSM Group to complete P1.5B OneEcom

Center by July 2007 to address the ICT needs of BPO companies

Verdict on RP business potentials: Very bullish

Verdict on RP business potentials: Very bullish

AT Kearney survey: 4th best outsourcing location UBS Warburg research survey: Fiscal reforms make RP attractive;

bullish on RP McKinsey & Co survey: RP among top 5 Outsourcing destinations S&P: RP to outperform its fiscal projection for 2006 META Survey: Filipino workers consistently one of the world’s

most competent GAAP Survey: Filipino accountants best in the world Phil Services Coalition study: RP poised to be more aggressive in

services market BPAP: Outsourcing to grow 42% in 2006

AT Kearney survey: 4th best outsourcing location UBS Warburg research survey: Fiscal reforms make RP attractive;

bullish on RP McKinsey & Co survey: RP among top 5 Outsourcing destinations S&P: RP to outperform its fiscal projection for 2006 META Survey: Filipino workers consistently one of the world’s

most competent GAAP Survey: Filipino accountants best in the world Phil Services Coalition study: RP poised to be more aggressive in

services market BPAP: Outsourcing to grow 42% in 2006

INVESTORS ARE UPBEAT ON THE PHILIPPINES

Goldman SachsGoldman Sachs

Our bullish Philippines view is centered on the belief that the economy is still Our bullish Philippines view is centered on the belief that the economy is still in the early stages of a cyclical asset price reflation cycle. in the early stages of a cyclical asset price reflation cycle. Our bullish Philippines view is centered on the belief that the economy is still Our bullish Philippines view is centered on the belief that the economy is still in the early stages of a cyclical asset price reflation cycle. in the early stages of a cyclical asset price reflation cycle.

Adam Le Mesuriar

With the strong macroeconomic story continuing to unfold throughout this With the strong macroeconomic story continuing to unfold throughout this year, we think that there is more upside for the Philippine debt.year, we think that there is more upside for the Philippine debt.

Merrill LynchMerrill Lynch

Fitch Ratings Fitch Ratings

Raised RP country rating from BB to BB+. Bullish Raised RP country rating from BB to BB+. Bullish investor sentiment should provide the backdrop that investor sentiment should provide the backdrop that would signal a possible upgrade in the country’s would signal a possible upgrade in the country’s sovereign ratings. sovereign ratings.

Raised RP country rating from BB to BB+. Bullish Raised RP country rating from BB to BB+. Bullish investor sentiment should provide the backdrop that investor sentiment should provide the backdrop that would signal a possible upgrade in the country’s would signal a possible upgrade in the country’s sovereign ratings. sovereign ratings.

RP may beat its revenue and budget deficit-reduction targets this year after raising and expanding its value-added tax. . . . at this stage the expanded value- added tax is delivering the goods together with tightening up of administrative and enforcement measures…The government's revenue and deficit targets are realistic. . . . . .there's probably some upside as well.

S&PS&P

ING BankING Bank

RP likely to get another upgrade of its credit rating RP likely to get another upgrade of its credit rating outlook this year as a result of its improving fiscal outlook this year as a result of its improving fiscal condition. condition.

Moody’s will raise its outlook on the Philippines to Moody’s will raise its outlook on the Philippines to stable before the year ends… and might also raise stable before the year ends… and might also raise their credit outlook to positive if the government their credit outlook to positive if the government continues its trend of outperforming its targets. . . . continues its trend of outperforming its targets. . . . investors will continue to be buying Philippine assets.investors will continue to be buying Philippine assets. We expect strong fundamentals and a stable external We expect strong fundamentals and a stable external environment to support Philippine financial markets.environment to support Philippine financial markets.

RP likely to get another upgrade of its credit rating RP likely to get another upgrade of its credit rating outlook this year as a result of its improving fiscal outlook this year as a result of its improving fiscal condition. condition.

Moody’s will raise its outlook on the Philippines to Moody’s will raise its outlook on the Philippines to stable before the year ends… and might also raise stable before the year ends… and might also raise their credit outlook to positive if the government their credit outlook to positive if the government continues its trend of outperforming its targets. . . . continues its trend of outperforming its targets. . . . investors will continue to be buying Philippine assets.investors will continue to be buying Philippine assets. We expect strong fundamentals and a stable external We expect strong fundamentals and a stable external environment to support Philippine financial markets.environment to support Philippine financial markets.

Paul Joseph Garcia

QUALITY LOCATION AND PRESENCE OF MAJOR GLOBAL PLAYERS

QUALITY LOCATION AND PRESENCE OF MAJOR GLOBAL PLAYERS

A.T. Kearney says… A.T. Kearney says…

The Swiss Int’l Institute for Management Dev’t says… The Swiss Int’l Institute for

Management Dev’t says… In 2004, among 60 countries in the Asia

Pacific, the Philippines ranks: No 1 - Availability of skilled workers No 3 - Availability of senior managers No 4 - Availability of IT professionals No 10 - Availability of accounting and financial

skills No 10 - Availability of expatriate middle

management No 12 - Availability of qualified engineers

In 2004, among 60 countries in the Asia Pacific, the Philippines ranks: No 1 - Availability of skilled workers No 3 - Availability of senior managers No 4 - Availability of IT professionals No 10 - Availability of accounting and financial

skills No 10 - Availability of expatriate middle

management No 12 - Availability of qualified engineers

What others say about RP … What others say about RP …

• “… we’ve been here for 27 years. In spite of the ups and downs, our Philippine operations continue to be very competitive. We take pride in being the country’s top export performer in the last five years, mainly because of a resilient, dedicated, multi-skilled, and English-speaking workforce…”

• … supportive Government… the President is pushing for Information and Communication Technology (ICT) as a primary growth engine of the economy…”

• “… we’ve been here for 27 years. In spite of the ups and downs, our Philippine operations continue to be very competitive. We take pride in being the country’s top export performer in the last five years, mainly because of a resilient, dedicated, multi-skilled, and English-speaking workforce…”

• … supportive Government… the President is pushing for Information and Communication Technology (ICT) as a primary growth engine of the economy…”

Robin MartinGM, Intel Phils.

. . .and still others say … . . .and still others say …

“The people of the Philippines are a unique people, which is why they fit into the SYKES Global Team so well. They are not only professional, dedicated, and team-oriented but also communicative and responsive – qualities essential to the success of a global company. They are civic-minded, fun-spirited, talented and highly educated – 99.9% of our SYKES Manila employees hold bachelor degrees or higher.

“The people of the Philippines are a unique people, which is why they fit into the SYKES Global Team so well. They are not only professional, dedicated, and team-oriented but also communicative and responsive – qualities essential to the success of a global company. They are civic-minded, fun-spirited, talented and highly educated – 99.9% of our SYKES Manila employees hold bachelor degrees or higher.

John Sykes, CEO Sykes Corp.

. . . still others say about RP …

. . . still others say about RP …

“… conveniently located in the middle of the Asian area, politically stable, with good communication facilities, and the English language being widely spoken…

…low cost of manpower, and a good attitude of the people to be trained and to produce a good output….”

“… conveniently located in the middle of the Asian area, politically stable, with good communication facilities, and the English language being widely spoken…

…low cost of manpower, and a good attitude of the people to be trained and to produce a good output….”

LUIGI BENEDETTIDirector

Alitalia Far East

. . . and still others say that RP …

. . . and still others say that RP …

“... recent international studies reveal that Filipino employees are rated very highly in terms of skill, flexibility, adaptability, cost and ability to speak English compared to other countries in Asia. Ten years ago, there were no centralized services in the Philippines. Today, some 14 companies have moved critical services into centralized operations in the Philippines. The pace can only accelerate…an ideal business location.”

“... recent international studies reveal that Filipino employees are rated very highly in terms of skill, flexibility, adaptability, cost and ability to speak English compared to other countries in Asia. Ten years ago, there were no centralized services in the Philippines. Today, some 14 companies have moved critical services into centralized operations in the Philippines. The pace can only accelerate…an ideal business location.”

Catherine WeirCountry Corporate Officer

Citibank NA

And what else … And what else …

“…we opened the Philippine center to ensure that our members everywhere continue to receive the highest level of customer service …

…we have seen outstanding results, achieving and surpassing expectations through an incredible workforce and facilities…”

“…we opened the Philippine center to ensure that our members everywhere continue to receive the highest level of customer service …

…we have seen outstanding results, achieving and surpassing expectations through an incredible workforce and facilities…”

Kirsten PowersCorporate Communication

AOL.com

others say about RP …

others say about RP …

“Lexmark International (Philippines) Inc. has been successful because of the talent and extra effort of the highly educated, English-speaking Filipino employees. The Philippine Team won the Lexmark “Triple Crown Award” for bringing the new plant on-line ahead of schedule, within budget and exceeding the product shipment plan by 300% in 1999.

In 2000, the Philippine plant delivered the best Lexmark CPD plant performance in areas of cost, productivity, quality and safety. This outstanding performance is the driving reason for Lexmark’s consideration of the Philippines for future expansion.”

“Lexmark International (Philippines) Inc. has been successful because of the talent and extra effort of the highly educated, English-speaking Filipino employees. The Philippine Team won the Lexmark “Triple Crown Award” for bringing the new plant on-line ahead of schedule, within budget and exceeding the product shipment plan by 300% in 1999.

In 2000, the Philippine plant delivered the best Lexmark CPD plant performance in areas of cost, productivity, quality and safety. This outstanding performance is the driving reason for Lexmark’s consideration of the Philippines for future expansion.”

Glen WestermanPresident and CEO

Lexmark Int’l

Here’s what others say about RP … Here’s what others say about RP …

“The strength of the Philippines is the Filipinos - - Our expat requirements are much lower than we anticipated during our investment planning.

We have already sent several Filipinos to other locations around the world to provide expertise from what they learned during our launch here. ”

“The strength of the Philippines is the Filipinos - - Our expat requirements are much lower than we anticipated during our investment planning.

We have already sent several Filipinos to other locations around the world to provide expertise from what they learned during our launch here. ”

Terry J EmrickPresident

Ford Group Phils.

Assessing RP business potential:

Assessing RP business potential:

DOMESTIC STABILIZATION REFORMS

SERVICES/ICT INFRASTRUCTURE

BUSINESS PERKS

COMPETITIVENESS

MACRO INDICATORS

PROFITABLE PHIL PARTNERSHIP

“Partnership with the Philippines now - is Profitable” “Partnership with the Philippines now - is Profitable” Fiscal reforms

+Sound macro-management = gov’t spending in public investment and infrastructure

Increased gov’t spending + political commitment – political risk = investor confidence

Investor confidence + remittances = private investment (FDI+portfolio)

Increased gov’t spending in infrastructure and ICT - corruption - red tape = business efficiency

Business efficiency + labor productivity = competitiveness

End of Presentation

Fiscal reforms+Sound macro-management = gov’t spending in public

investment and infrastructure Increased gov’t spending

+ political commitment – political risk = investor confidence Investor confidence

+ remittances = private investment (FDI+portfolio) Increased gov’t spending in infrastructure

and ICT - corruption - red tape = business efficiency Business efficiency

+ labor productivity = competitiveness

End of Presentation