Purchase OBG Publications

With the government committing unprecedented levels of funding to increasing the coverage of its national public health insurance programme, positive effects are being felt throughout the domestic health sector. The Philippine experiment of combining public health care spending with private sector delivery continues to evolve. As health care remains central to the public interest, there is a heavy onus on improving access and efficiency in accordance with the goal of providing universal health care coverage for all Filipinos by 2016. In addition to the realisation of hard infrastructure projects under public-private partnerships, options for the provision of health services under such a model are gradually coming to the fore. This chapter contains an interview with Mario M Silos, Chairman and President, Intellicare.

Still the country’s largest single employer, the Philippines’ agriculture sector continues to play a pivotal role in the economy, even as the government looks to develop other modern industries to lead the way in the future. Directly employing more than one-quarter of all workers in non-services industries, more than 11m Filipinos relied on agriculture for their livelihood in 2013, according to the Philippines Statistics Authority (PSA). The palay, poultry and livestock industries were the key drivers of growth in 2013, and the segments continued to perform well in the first half of 2014. Determining the most effective means of countering the effects of weather will be a key concern going forward. Initiatives to boost yields of staples such as rice and corn should reduce the country’s food import bills in the future, even if the stated goal of full rice self-sufficiency is not achieved. The flourishing fisheries and fruits and vegetables segments are likely to continue to be profitable as well, as international demand still significantly outpaces the supply of Philippines-cultivated produce and seafood. This chapter contains interviews with Senator Cynthia A Villar, Chairperson, Senate Committee on Agriculture and Food; and Milagros Ong-How, Executive Vice-President, Universal Harvester Incorporated.

Lagging behind the region’s faster evolving markets when it comes to the provision and adoption rate of mobile broadband, data usage and mobile services in the Philippines are expected to grow as smartphones become more pervasive and the two leading operators continue to raise capital expenditure to upgrade existing networks and deploy 4G sites. Overall, the Philippine’s young population and expanding economy makes it an attractive market for telecoms firms to play. Despite the two incumbent operators enjoying an entrenched market position that makes them difficult to challenge, the propensity for Filipinos to consume online content and engage in social media presents opportunities for a range of technology firms involved in delivering media content, gaming, e-commerce and digital advertising. Encouraging demographics and a well established BPO industry suggest there are also strong opportunities for growth and ways to expand upon current operations in the IT sector. If harnessed effectively, the Philippines possesses a number of ingredients that position it to emerge as a globally competitive tech hub. This chapter contains an interview with Ryan Guadalquiver, Managing Director, Hewlett Packard Enterprise.

The global BPO industry is forecast to be worth $250bn by 2020 and the Philippines is seeking to cement its position as a preferred global service offshoring hub and expand on and diversify its share in this lucrative, yet highly competitive field. Having grown at a compound annual growth rate of around 10% over the past decade, the BPO sector has become the country’s largest source of private employment and the second-largest contributor of foreign exchange earnings after remittances. It has also fueled the growth of other sectors, as the salaries paid out have augmented household consumption and anchored the expansion of the property and retail sectors. Since 2004, the Philippines has tripled its global market share of BPO business, from 4% to 12.3% in 2014. It is estimated that this could rise to 19% by 2020. This chapter contain an interview with David Rizzo, Asia Pacific President, Teleperformance.

The construction and real estate sectors make up around 20% of the Philippine economy, slightly ahead of manufacturing. Over the past few years, construction in the Philippines has been flourishing amid a climate of political stability and upbeat business sentiment, spurred by growth in overseas foreign worker remittances, inbound investments into business process outsourcing, rising numbers of tourist arrivals, and government spending on large- and small-scale infrastructure. Although growth rates for the sector are unlikely to maintain the exceptional levels of the past 24 months, the long-term prospects remain solid and balanced. Positive trading conditions for the residential, office, retail and hospitality segments point to robust demand for private-sector-led building. This chapter contains interviews with Chito Cruz, Chairman, Housing and Urban Development Coordinating Council; and J J Atencio, President and CEO, 8990 Holdings.

Despite boasting a range of attractions and a reputation for hospitality on par with its regional competitors, the Philippine’s tourism industry has a long way to catch up with nearby powerhouses such as Thailand and Malaysia. Under the administration of President Benigno Aquino III, the sector has been identified as a vehicle to be prioritised for the positive impact it can have on inclusive economic growth, and efforts appear to be bearing fruit. The World Economic Forum (WEF), in its “Travel & Tourism Competiveness Report 2015”, ranked the Philippines at 74th overall, 12 places higher than the country ranked in the previous report – the largest improvement of any country within the Asia-Pacific Region. With plentiful natural endowments and a cultural propensity for service and hospitality, the Philippines is fortunate to possess assets that serve as demand drivers. This chapter contains interviews with Jose Chaves Alvarez, Governor, Province of Palawan; and Joy Cañeba, CEO, Philippines AirAsia.