Phl: Strong consumption paves way for investment rise

MANILA, Philippines - Efforts under way in the Philippines to roll out the country’s planned big-ticket developments, including major road and irrigation schemes, will be given wide-ranging coverage in a forthcoming report to be published by the global publishing, research and consultancy firm Oxford Business Group (OBG).

The Report: The Philippines 2013 will explore the government’s bid to steer through its infrastructure program, which has been plagued by blockages, but is viewed as key to boosting investment. It also looks at the important role earmarked for banks in driving growth on the back of rising domestic demand and a further anticipated increase in lending.  It will be produced with research assistance from SyCip Salazar Hernandez & Gatmaitan law firm and Punongbayan & Araullo. 

OBG has signed a memorandum of understanding (MOU) on research facilities once again with Punongbayan & Araullo to compile the Tax Chapter of The Report: The Philippines 2013. The group will also team up with SyCip Salazar Hernandez & Gatmaitan in an agreement which will give OBG access to the law firm’s expertise and research resources for its legal coverage.

OBG regional editor Paulius Kuncinas said the Philippines had surprised many investors recently by outpacing other ASEAN economies, including Malaysia and Thailand.

 â€œBlessed with relatively limited natural wealth, the Philippines has been forced to look for more creative paths towards prosperity, such as business process outsourcing. This has made it one of the leading centers for English language back office outsourcing, serving some of the biggest companies in the US and Europe,” he said. “Going forward we think there is still huge potential to expand the Philippines’ market share in BPOs and also raise the value-add through outsourcing of more technical services. The main risk is still fairly low investment into infrastructure, with installed power capacity lagging behind other nations.”

The chairperson and CEO of Punongbayan & Araullo, Marivic Espano said she looked forward to teaming up with OBG once again to document the further economic expansion earmarked for the Philippines. “While there are of course concerns that the Philippines could be affected by global economic uncertainty, investors will have noted with interest that the country is expected to have one of the highest rates of GDP growth in Asia in 2013,” she said.