Philippines

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.

With mobile phone penetration rates reaching saturation point in the Philippines, there is room for expansion through the promotion of new services and internet usage, according to a recent report issued by the World Bank.

A new mining policy in the Philippines is intended to bring greater regulatory clarity to the sector and is an important step towards unfreezing the current hiatus in an industry that has huge potential. However, until a new revenue-sharing bill for the sector – which will likely raise taxes on mining operations – is implemented, no new contracts will be awarded.

The central bank, Bangko Sentral ng Pilipinas (BSP), has moved to boost banking services in rural regions by lifting restrictions on the number of branches small lenders are allowed to operate, while trying to convince rural banks to merge to strengthen their capital base.

A recent announcement that plans to raise the capital requirement for insurance companies could be delayed beyond 2016 could give local and international insurers more time to focus on growth areas such as microinsurance and bancassurance.

The Philippines’ aviation sector is looking to regain the necessary accreditation that will grant its carriers access to lucrative routes, as well as encourage overseas airlines to add domestic destinations to their flight lists. While these aims are highly anticipated, much still needs to be done before these goals come to fruition.