Philippines

A rising tide of investments in infrastructure development, combined with higher spending by the private sector, is set to drive the robust expansion of the construction sector, and in particular, the cement production segment. However, prices could be pushed up by rising demand as a number of large new infrastructure projects are rolled out.

Major changes are expected in the Philippines’ higher education system as a drive to target courses that will meet the demands of the evolving economy gains pace.

Legislative reforms opening up the rural banking segment to wider foreign investment could see an injection of funding into at least some of the almost 600 small lenders. However, it is likely that only a few will attract an overseas partner.

Although India has long dominated information technology outsourcing (ITO), the Philippines is fast making up ground by carving itself a place as an alternative destination for offshore IT service providers.

A drive to reduce electricity shortages in the Philippines will see the country set out to become the largest geothermal energy producer in the world in line with efforts to increase its focus on renewable energy sources.

Continued expansion of the economy and the increasing reach of leading shopping chains outside the major cities will help drive growth in the Philippines retail sector in the medium term. However, there is also a possibility that smaller outlets could be swamped by the rising tide of malls and large-scale developments.