MANILA, Philippines - Dutch financial giant ING Bank is bullish on the country’s economic prospects and sees huge business opportunities for foreign investors amid sustained growth.
ING Bank Manila country manager Consuelo Garcia said foreign investors see huge opportunities in the Philippines given the country’s robust economic growth and strong demand for infrastructure.
“There are a number of things that resonate strongly with investors. We are pretty excited that the Philippines is entering a demographic sweet spot,” Garcia said.
Garcia said the country’s gross domestic product (GDP) would continue to grow as businesses reap the economic rewards of the rising proportion of young and consumption driven population entering the workforce.
As a result, the Philippines is expected to breach the $3,000 per capita barrier as a result of a decade of steady growth.
“We should not underestimate the fact that we have been growing at an average of six percent for the past four years and second highest in Asia,” Garcia said.
Although the growth has slowed down, ING still expects the country’s GDP to expand by six percent this year.
“Investors see the market as a consumer market and all the privatization is also attracting a lot of expertise,” she said.
ING commercial banking global head William Connelly said ING is focusing on supporting foreign multinational firms that plan to invest in the Philippines. He said foreign investors are at ease in the Philippines due to the strong economic growth as well as the practice of the government in honoring contractual obligations.
“What we’re seeing is a robust commercial growth. In the sense, when you enter into contractual obligations in the Philippines and you buy something, you’ll feel comfortable that the support system and the commercial system support that. Certainly, that gives comfort if you’ll enter into long-term investment,” Connelly added.
He pointed out ING bank has grown into a key player in financial markets, mergers and acquisitions as well as specialized sector financing such as in the power, utilities and infrastructure sectors since opening a representative office in the country in 1990 and becoming the first foreign bank to upgrade into a universal bank in 1995.
According to Connelly, ING is planning to increase the workforce of its business process outsourcing (BPO) operations in the Philippines through ING Global Services and Operations Inc.
“We selected Manila as one of two locations all over the world three years ago. We are very enthusiastic and we are looking to double certainly over the next couple of years the number of people we employ here,” he said.
ING commercial banking Asia chief executive officer Mark Newman said the company is planning to increase the number of its employees to 500 by end 2016 from the current level of 250.
Newman also disclosed big companies in the Philippines are looking at expanding their presence in other countries.
“European companies have been investing in Asia and in the Philippines. Now, we are seeing more Philippine conglomerates that have grown big and strong enough to consider expanding into other markets and ING has the international network across 40 countries to help them meet their ambitions,” Newman said.
Connelly and Newman flew to the Philippines from the bank’s head office in Amsterdam and regional office in Singapore to attend ING Manila’s 25th anniversary celebrations.
ING Bank set up its representative office in the Philippines in 1990 and became the first foreign bank to upgrade itself into a universal bank in 1995.
Since then, ING Bank has grown into a key player in financial markets, mergers and acquisitions, and specialized sector financing, such as in power, utilities and infrastructure. It has completed 58 mergers and acquisition transactions worth $17.1 billion since 1998, including the acquisition of dominant carrier Philippine Long Distance Telephone Co. (PLDT) of Digital Telecommunications Philippines.