If the historical evidence is not enough to convince you, then here are some of the reasons why you should start investing in the Philippines. According to the National Economic and Development Authority (NEDA), the country continues to surge forward as compared to its neighboring countries.
NEDA indicated that the country’s gross domestic product (GDP) increased by approximately 6.2 percent in the third quarter of 2019. Despite numerous setbacks in the first two quarters of 2019, the Philippines managed to bounce back and outperform most countries in its region. This is largely attributed to aggressive consumer spending that made up two-thirds of the GDP.

The Way Ahead

Philippine economic managers have set a target of approximately 6.5 to 7.5 percent growth for 2020 to 2022. According to them, these targets are likely to be hit after the majority of infrastructure projects under the “Build Build Build” program of Philippine President Rodrigo Duterte has been completed. Furthermore, NEDA has laid plans to mitigate several risks, including the weakening of global trade, disruptions due to conflict, and oil price volatility.

Apart from government economic planners, foreign private companies and analysts expect that the Philippines will outperform its neighboring countries as well as its global peers. The Hong Kong and Singapore Banking Corporation (HSBC) forecasts that investment in the country will increase from 2.3 percent to 10.7 percent in 2020. All of this, according to HSBC, is possible due to strong public spending and private consumption, continued easing of monetary policies, and steady inflow of capital from foreign investors.

Ease of Doing Business and Taxation

Aside from the positive economic outlook, the Philippines continues to streamline its services. The time spent on doing government transactions have significantly lessened, and the ease of doing business in the country has dramatically improved.

The tax reforms, particularly the Tax Reform for Acceleration and Inclusion (TRAIN), have also enhanced the country’s private consumption, boosted economic growth, and contributed to more significant public spending.

Economic Hubs

You will know that foreign businesses in the Philippines continue to boom with the expansion of economic hubs in various parts of the country. Aside from the capital Manila, provincial cities in other parts of Luzon, Visayas, and Mindanao islands have their flourishing economic hubs where foreign businesses have decided to set up shop. For example, the cities of Cebu, in the Visayas, and Davao in Mindanao, have seen an influx of foreign capital investment in the form of offshore businesses, including call centers and overseas online gaming operations.

In Manila, there are several economic and financial hubs. These include Ayala Center in Makati City, Eastwood in Quezon City, Ortigas Center in Pasig and Mandaluyong cities, Bonifacio Global City in Taguig City, and Mall of Asia in Paranaque City. Over the years, these hubs have greatly expanded, and many multinational companies, as well as foreign startups, have established their headquarters in these areas. Setting up your business in any of these locations will almost guarantee its success.

Where to Begin

Now that you’re convinced, you should start planning your next step. Regardless of the type of business, you will need to find a place. There are plenty of office space for sale in Ortigas, Eastwood, and other business hubs in Manila. You should also have a concrete business plan before you start your venture. Starting a business in the Philippines is a great idea, but make sure you cover all the bases before you invest your hard-earned money.