Philippines Industry

A drive to increase the number of industrial parks opening their doors across the Philippines is gathering pace as the country moves to build on a landmark level of foreign direct investment (FDI) notched up last year.

In a move that should pave the way for renewed growth in the minerals sector, The Philippines has lifted a moratorium on issuing new mining exploration permits. However, the end of the ban may not lead to the surge of new investments the government is hoping for, as local and foreign investors are likely to be cautious as they assess the impact of new capitalisation requirements and tax regulations.

While the automotive segment has been boosted by a solid rise in sales, driven by increased economic growth and consumer spending power, there is rising uncertainty over the long-term viability of domestic production, as regional rivals and a still-narrow market eat away at cost efficiency.

Rising revenues and job creation, backed by new investments, are currently highlighting the surging growth in the Philippines’ business process outsourcing (BPO) segment.

The Philippines business processing outsourcing (BPO) sector is fast developing into one of the pillars of the nation’s economy, with both earnings and employment levels soaring in recent years, though there are concerns that international competition, rising costs and staff shortages could undermine future growth.

The mining industry in the Philippines seems set for a boom, with earnings advancing and large-scale projects scheduled to come on-line over the next few years. However, lingering concerns over the global economy could dent demand and slow the flow of investment, as could uncertainty over regulations governing the industry.