Clark is a new and bustling metropolis, and is the fastest growing investment destination in the Philippines today. it is strategically located from key trading points and financial centres, a vital factor that can ensure prompt delivery of services and goods to major destinations in Asia and the world over.
It has a total land area of 31,400 hectares and is located in a region with one of the highest population and best literacy rates.
Clark has its own international airport and is master-planned to suit a work-live-play environment in one contained community.
It is considered as a major gateway to the Philippines with about 4 hours travel time to key cities in Asia and with regional flights that have onward connections to the world.
Clark has its own Freeport and nearby Special Economic Zone where there are enormous business opportunities in manufacturing, electronics, information technology, business process outsourcing, among the many profitable industries.
A country of notorious traffic jams may soon start to unclog.
So says The Economist in January 2020.
Should you get up at 4am to get to work on
time, or risk
waiting until five?
That is the .question confronting many commuters in Manila, the capital
of the Philippines, which has some of the world’s worst traffic jams. Geography
is one reason. The 2m people trying to get in and out of the metropolis each
day must squeeze into a narrow strip between the sea on one side and a lake and
hills on the other; But poor urban planning and a dearth of infrastructure
investment in recent decades have compounded the problem. Filipinos spend 16
days a year stuck in jams, according to the Boston consulting Group. The World
Economic Forum ranks the Philippines 96th of141 countries tor the quality of
its infrastructure. Nearby Indonesia, another nation of thousands of islands,
On January 17th the public-works minister announced that by
the time President Rodrigo Duterte leaves office in 2022, he wants to have cut
the number of cars that pass along the city’s main artery each day bv a third.
Such bold declarations have been characteristic of Mr Duterte’s approach to
infrastructure. When he became president in 2.016 he considered demanding
emergency powers from Congress to help him deal with the traffic. In the end,
he settled instead on a long-term scheme to spend 9trn pesos ($177bill) on new-
infrastructure called ”Build, Build, Build”. The focus on construction
represents a “very bold shift in government priority”, believes Vince
Dizon, a presidential adviser.
As the jams in Manila suggest, not much has shifted yet. Such
change is corning, “Build, Build, Build” involves 100 big projects.
Construction is under. way on almost half of them. In 2018 the government
introduced a law to cut red tape in permitting, partly to
speed up infrastructure investments. Some planning committees are meeting three
times as often as they used to. Twenty projects were approved in the final
three months of last year, says Mr Dizon. Impractical schemes promoted by the
president, such as a plan to link all the main islands of the Philippines by
bridge, have been quietiy set aside.
One of the biggest projects still in the works is New Clark
City, which is eventually supposed to house um people and lots of government
offices, in an effort to ease traffic in nearby Manila. The city was planned
under Mr Duterte’s predecessor, but embraced by him in an unusual display of
political continuity. The first phase was completed in November. Mr Duterte has
also presided over the opening of a new airport in the province of Bohol, and
of the Philippines’ largest passenger-ferry terminal on his home island of
Spending on infrastructure has roughly doubled since the
president took office.
The plan is for it to reach 7% of GDP up from 2.6% in 2015
(see chart on next page). The austere policies of past presidents have left Mr
Duterte scope to borrow. Public debt is around 41% of GDP. He has introduced a
series of sensible tax reforms, which are expected to help boost government
revenue, and diversified the Philippines’ sources of funding. Japan has
provided some $12bn in recent years. The Asian Development Bank(ADB) is so enthusiastic
about Mr Duterte’s infrastructure plans that last year it lent the Philippines
more than any other country bar India. China has also promised $9bn for
infra” structure, although it has signed formal agreements to provide only
Public-private partnerships are also being used. More than a
quarter of big projects under “Build, Build, Build” will involve
private investors. Ensuring that the terms of concessionary agreements are fair, however, has been an
obsession of Mr Duterte’s administration. The president’s ongoing spat with two
water companies in Manila over their contractual rights is a case in point.
Shares in one of the firms, Manila Water, dropped to a 14-year low at the height
of the furore last month. That may worry companies that are thinking about
joining the infrastructure push.
The government says that by the middle of 2022 roughly half
of the 100 “Build, Build, Build” projects should have been completed.
Kelly Bird of the ADB says even finishing 30 would make the programme
“hugely successful”; Filipinos are well aware. of Mr Duterte’s
efforts. A survey by Pulse Asia, a pollster, for December found that 69% of
respondents thought his government was doing a “better” job of developing
infrastructure than its predecessor.
Obstacles will mount as Mr Duterte nears the end of his time
in office, however, and his political power begins to ebb. And once he steps
down there is no certainty that his successor will complete his plans. New
presidents in the Philippines often kill projects initiated by their predecessors.
In 2011 Benigno Aquino, the president of the day, cancelled 66 of.72 car-ferry
ports planned by the previous president, Gloria Arroyo, alleging corruption.
With luck, though, Mr Duterte’s successor will see the benefit in inheriting
dozens. of partially constructed projects and a host of shovel-ready ones. A
bulging pipeline of sensible projects could
Philippines’ GDP posted a year-on-year growth of 6.4 per cent in the fourth
quarter of last year, resulting in 5.9 per cent full-year growth for 2019. The
main drivers for growth in the fourth quarter were the trade and repair of
motor vehicles, motorcycles, and personal and household goods as well as
manufacturing and construction. Among the major economic sectors, services
posted the fastest growth at 7.9 per cent.
the country’s projected population reaching 108.7 million in the fourth quarter
of 2019, per capita GDP grew by 4.8 per cent.
The compounded annual growth rate (CAGR) of the
PH merchandise for the total trade to the UK from 2017 to 2019 is at 4.8 per
cent. PH exports to the UK increased by 2.43 per cent from 2017 to 2018, due to
the increase in the shipment of (1) tunas, skipjack and bonito, (2) other pulps
of fibres, and (3) other electrical apparatus. Similarly, PH imports from the
UK rose by 31.35 per cent due mainly to the increase in the importation of (1) parts
of aeroplanes or helicopters, (2) transistors, and (3) spark-ignition
reciprocating or rotary internal combustion piston engines for aircraft.
In 2018, the UK was the Philippines’ 22nd trading
partner (out of 222), 18th export market (out of 213) and 22nd import source
(out of 198).
arrivals from January to November 2019 totalled 7.48 million with a growth rate
of 15.58 per cent. The UK remains the largest source of tourists from Europe and
the 8th largest market globally with 187,164 visitors arriving from
Britain last year.
The World Bank released its “Doing Business 2020” report, wherein the Philippines made a significant improvement from rank 124 out of 190 economies, to rank 95 with a score of 62.8 in this year’s report. This was the most significant improvement among ASEAN countries.
The report highlights the following reforms undertaken by the Philippines that has made it easier to do business in the country, including:
The Philippines made starting a business easier by abolishing the minimum capital requirement for domestic companies;
The Philippines made dealing with construction permits easier by improving coordination and streamlining the process for obtaining an occupancy certificate; and
Philippines strengthened minority investor protections by requiring greater
disclosure of transactions with interested parties and enhancing director
liability for transactions with interested parties.
The Philippines Inflation Rates
Opportunities in The Philippines for UK Companies
Economic information Courtesy of the Philippines Embassy, London
Graphic Courtesy of the British Chamber of Commerce, Manila
“Build, Build, Build” is becoming “Use, Use, Use” and putting Philippines on the global economic map. International organizations that previously had bad attitudes about the Philippines (and Duterte) are now gushing with praise. “The Economist” reports glowingly on the gargantuan infrastructure program of the Duterte administration.
Asian Development Bank (ADB) lent the Philippines more than 67 countries last year (only India, with 10X the population, got more). The government estimates that about 50 of the 100 “Build, Build, Build” projects will be completed by 2022. ADB says ecstatically if only 30 finish, it would be “hugely successful.”
+ Will Secretary Tugate finish in time for the next election? + Can the Philippines really enter the big-leagues of global economies? + Will Duterte’s sky-high approval ratings go even higher? + Can we prevent the next government from killing everything after the election?
Get the full story from the remarkable Arthur Tugade, Secretary of Transportation, at Asia CEO Forum on February 26 (8am to 10:00am) at the Manila Marriott. The price of admission is just Php1,500 and includes 5-star breakfast (Php2,000 if paid at the event). REGISTER HERE.
Asia CEO Events is the largest and only national business event series in the Philippines. Senior business leaders come from across Asia for events in Metro Manila, Cebu, Davao, Clark and other locations. See future events at www.asia-ceo.org .
DATE AND TIME February 26th, 2020 7:45 am – 10:30 am
Shame on them! Shame on anyone who says this government’s infrastructure program is not making massive progress. All knowledgeable observers say the Duterte Administration’s “Build, Build, Build” agenda to spend 9 Trillion pesos (US$177 Billion) constructing new infrastructure will have a profound impact on the nation that will extend for generations to come.
Hear Transport Secretary Arthur Tugade tell it himself at the next Asia CEO Forum on February 26 (8am to 10:00am) at the Manila Marriott. Expect a complete update on the remarkable progress.
The work being done is being enthusiastically noticed around the world. The influential global financial magazine “The Economist” recently reported in rare glowing terms about Duterte’s infrastructure program, “The Philippines… to Unclog.”
Asian Development Bank (ADB), previously known to be pessimistic about the country’s progress, has become one of its biggest boosters. It lent the Philippines more than any other country last year — with the exception of India, a country with 10 times the population.
The government estimates that about 50 of the 100 “Build, Build, Build” projects should be completed by 2022. The ADB says if just 30 are completed it would be “hugely successful.”
Can Secretary Tugate finish everything in time for the next election? Will this mark the Philippines’ entry to the global economic big-leagues? What will be the impact of approval ratings on Duterte, already one of the world’s most popular politicians? Will the next government kill everything a week after the election?
• The compounded annual growth rate (CAGR) of the PH merchandise for the total trade to the UK from 2014 to 2018 is at 9.6%. During the same period, the CAGR for import is 15.5%; whilst for export is at 3.8%.
• The top 5 PH exports over the past five years are: a) electronic products (↑7.6%); b) machinery and transport equipment (↓ 11.1%); c) other manufactures (↑ 9.2%); d) tuna (↑ 12.8%); and e) processed food and beverages (↑ 13.4). 2
• Meanwhile, the top 5 imports in 2018 are: a) optical, photographic, measuring or surgical instruments and apparatus; b) miscellaneous manufactured articles; c) furniture, bedding, mattresses; d) toys, games and sports requisites; and e) commodities and transactions not classified elsewhere.3
The British Business Delegation To The Philippines will take place during 23 – 28 February 2020.
The PBBC are delighted to be working with the British Embassy, British Chamber of Commerce in Manila and the Makati Business Club, to offer U.K. companies this unique opportunity to do business or invest in the Philippines. Please put the dates in your diary and make contact early to secure your place on the Business Delegation.
THIS EVENT IS MULTI-SECTOR AND OPEN FOR ALL
The British Business Delegation to the Philippines will include new and experienced exporters, investors, those looking to source from the market and those looking to outsource services to the Philippines. There is already strong, growing interest in tourism in the Philippines so anyone looking to increase tourism connections is also encouraged to apply. The delegation will be led by a senior and experienced PBBC Member from the UK with extensive experience of doing business in the Philippines.
The program for the delegation will include political, economic and
sector briefings, business matchmaking events, site visits, business receptions
and networking opportunities. One-to-one meetings can be added for a small
additional fee. There will also be time for delegates to take the opportunity
to explore the bustling city of Manila.
Travel & Hotel Package
The delegation will fly Philippine Air Lines (PAL) – the flag carrier of the Philippines (direct flight between London and Manila). The travel package cost will include flight, hotel accommodation for the duration of the visit and connections.
The Philippines is one of the fastest growing global economies and has a rapidly expanding services industry. Economic growth has accelerated in recent years, averaging 6% GDP growth per year from 2011 to 2018 and is expected to expand at a solid pace through 2019/20 (Focus Economics). Now is the perfect time to explore the exciting business opportunities the Philippines has to offer.
For more information and to sign up to the delegation please contact Melissa Dizon on 07741 654362 or by email at firstname.lastname@example.org www.facebook.com/britishbusinessdelegationphilippines2020
• The Philippine economy remained one of the fastest growing in Asia, along with Vietnam and China. The PH Government is expecting a 6.5 percent GDP growth in 2018. The PH government will report on the 2018 GDP performance next week.
• Inflation averaged 5.2 per cent last year, its quickest pace since the global financial crisis a decade ago.
• The annual employment rate in 2018 was estimated at 94.7 percent; annual unemployment rate was 5.3 percent.
• The total employed persons in the country in 2018 was approximately 41.2 million in 2018.
Budget (Revenues and Expenditure)
• In the first 11 months of 2018, the government’s budget balance swayed to a US $9.1 billion deficit, 96 percent higher than US $4.6 billion shortfall registered in the comparable period in 2017.
Foreign Direct Investment / Portfolio Investment
• FDI net inflows for the first ten months of 2018 reached US$8.5 billion, an increase of 1.8 percent from the US$8.4 billion net inflows in the comparable period in 2017. The government has projected overall FDI to hit $10.4 billion for the entire 2018.
• Personal remittances from OFWs in January – November 2018 reached US$29.1 billion, 2.9 percent higher than the level posted a year ago.
• The bulk of cash remittances for the first eleven months of 2018 came from the US, Saudi Arabia, United Arab Emirates, Singapore, Japan, United Kingdom, Qatar, Canada, Germany, and Hong Kong. Cash remittances from these countries accounted for almost 79 percent of total cash remittances.
• Cash remittances from the UK to the Philippines increased by 9.2 per cent at US$1.3 billion from US$1.2 billion for the same period in 2017. UK remains the top source of overseas Filipino remittances in Europe, representing 35.6 % of the total remittances from the region.
• International tourist arrivals in the first three quarters of 2018 reached 5.8 million travellers. Of these, 1.2 million are from South Korea and almost a million from China. On a national basis, South Korea provides 20 per cent of the tourists coming to the country.
• Arrivals of UK visitors have reached 163,000 visitors within the first three quarters of 2018 – this represents a 9.73 per cent increase from the same period in 2017.
• The UK visitors from the Philippines means the UK still ranks as the top visitor market for the Philippines in Europe.