Philippines

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.

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.