ASEAN businesses bullish on Philippine growth prospects

MANILA, Philippines — Business leaders in the Association of Southeast Asian Nations (ASEAN) are bullish about the growth potential of the Philippines with the revival of the public-private partnership (PPP) scheme under the new administration, according to Standard Chartered Bank.

Based on the “Winning in ASEAN” report, Standard Chartered said many business leaders are optimistic about the Philippines’ overall growth potential, with 52 percent of surveyed corporates having or planning to have a sales presence locally over the next three years.

Standard Chartered Philippines CEO Lynette Ortiz said the country remains one of the dynamic economies in the region.

“The Philippines is one of the most dynamic economies in the ASEAN region with strong consumer demand supported by a vibrant labor market, sound economic fundamentals, and a globally competitive workforce. The government’s commitment to further boost infrastructure spending and its focus on digitalization and sustainability are expected to drive the country’s economic rebound and growth momentum,” she said.

“Standard Chartered is well-positioned to help our clients tap the growing business and investment opportunities in the country and contribute to its continuing progress.”

The report showcases business sentiments, opportunities, and strategies corporates could undertake to navigate the global shifts and drive growth in the region.

The findings underscore the impetus for a greater and effective PPP to accelerate recovery and resilience in ASEAN and beyond.

In 2021, ASEAN was the third highest recipient of foreign direct investment (FDI) globally, with inflows of $174 billion, returning to pre-pandemic levels.

Some 50 percent of ASEAN’s FDI inflow originated from the US, the EU and China, while intra-ASEAN FDI contributed about 12 percent of the region’s FDI inflow in 2021.

Furthermore, trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) are expected to further accelerate growth.

With RCEP in place, 81 percent of business leaders surveyed plan to increase investments in ASEAN over the next three to five years. Overall, 93 percent of them expect positive revenue growth from their ASEAN businesses.

Benjamin Hung, CEO for Asia at Standard Chartered, said “ASEAN is an oasis of growth with its GDP forecast to grow about four percent annually to $4.5 trillion by 2030.”

“Amid global complexities, we see structural trends presenting significant opportunities in ASEAN, where there is growing inter-connectivity in trade and capital flows, strong digital adoption, and an acceleration of green transition. Corporates need to act decisively to capture what ASEAN has to offer today. As a leading international bank in the region, Standard Chartered is committed to supporting our clients in capturing these exciting opportunities,” Hung said.

According to the report, business leaders understand the need to prioritize investments, as they capture opportunities quickly and ensure sustainable growth.

The report showcased a ‘THRIVE’ framework, representing the six growth pillars that corporates are pursuing to advance in ASEAN. This includes talent, hi-tech, regulatory, infrastructure, value chain, and environment.

“To overcome the aftermath of the pandemic, resulting shifts from rising geopolitical tensions, and the intensified competition for talent, the findings highlight the top two focus areas, where each sector is prioritizing their investments in the next three years,” Standard Chartered said.