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Though still trailing its neighbors, the transport sector in the Philippines is in the process of modernizing as the current government continues to fast-track relevant infrastructure projects, while also taking modest steps to improve inter-agency cooperation and good governance. The sector is a key component of the national economy, which will be better able to achieve its potential through improved linkages between economic centers and cities on the archipelago. Road transport remains by far the most dominant mode of travel, and, according to the Asian Development Bank, road transport accounts for 98% of passenger traffic and 58% of cargo traffic. However, due to a lack of adequate financing, levels of servicing have fallen behind. The World Bank has predicted that the economy will grow 6.7% in 2015 – although this growth will depend on the government’s ability to improve spending and encourage public-private partnerships. Regulatory uncertainty and convoluted bidding procedures have hindered the progress of such projects so far and must be righted so that the advantages of private sector interest can be realized. This chapter contains interviews with Maximo Mejia Jr, Administrator, Maritime Industry Authority; and Rashid Alexander Delgado, President, Transnational Diversified Group; and a dialogue with Eric Francia, President and CEO, AC Infrastructure Holdings and Jose Ma K Lim, President and CEO, Metro Pacific Investments.

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This chapter gives a breakdown of the tax environment in the Philippines, examining new developments that include separate tax regimes offered in special economic zones, regulations governing transfer pricing and bookkeeping requirements. It also contains an interview with Marivic Españo, Chairperson and CEO, P&A Grant Thornton.

This chapter explores the legal framework of the Philippines, focusing on new legislation for foreign banks, legal procedures for mergers and acquisitions, and rules on data privacy and anti-money laundering, among other recent developments. It also contains an interview with Rafael A Morales, Managing Partner, SyCip Salazar Hernandez & Gatmaitan.

Having been the only country in South-east Asia providing just 10 years of basic education to its population, the Philippines is working to join its neighbors and implement a K-12 system in 2016. Though the administration of President Benigno Aquino III is providing the Department of Education with more funding to aid the realization of this task, the challenge of doing so over a short transition period is unquestionable. The growing role of the private sector in providing educational services is crucial, with greater opportunities on the horizon and the government taking slow but steady steps to define them. Continuing reform is set to further integrate and incentivise private sector participation, as is happening in sectors like infrastructure and health care. Elsewhere, the challenges of access and quality remain, which the government continues to address through a host of pragmatic initiatives. This chapter contains an interview with Irene Isaac, Director-General, Technical Education and Skills Development Authority.