Purchase OBG Publications

Directly employing more than one-quarter of all workers in non-service industries, agriculture provided a livelihood for more than 11m Filipinos in 2013. The sector continues to play a pivotal role in the economy, even as the government looks to develop other industries to lead the way in the future. Recent public and private efforts to boost output and efficiency have led to promising improvements across several segments, including a drive for self-sufficiency in the staple crops of rice and corn and expansion of the sugar industry, while continued investment has produced growth in export-oriented cash crops. Determining the most effective means of countering the effects of inclement and often devastating weather will be a key concern going forward. This chapter contains interviews with Francis N Pangilinan, Secretary, Office of the Presidential Assistant for Food Security and Agricultural Modernisation; and John P Perrine, Chairman, Unifrutti Group Philippines.

Just two companies control the fixed-line and mobile telecommunications market; however, competition between these two providers is intense. The mobile network operators are beginning to shift their investment focus to providing more data capacity and related services, preparing networks for the 4G rollout. 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. If harnessed effectively, the Philippines possesses a number of ingredients that position it to emerge as a globally competitive tech hub. While large corporates and business process outsourcing companies are still the mainstay when it comes to ICT spenders, efforts are under way to integrate and transform government agencies to more effectively deploy IT in delivering public services. This chapter contains interviews with Mariels Almeda Winhoffer, Vice-President for Global Business Partners Asia-Pacific, IBM; and Maria Rosario Santos-Concio, President and CEO, ABS-CBN Corporation.

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. By 2020 the global BPO industry is forecast to be worth $250bn and the Philippines is seeking to cement its position as a preferred global service offshoring hub and expand and diversify its share in this lucrative, yet highly competitive field. Ongoing efforts to revamp the education system and better match the industry’s technical requirements should bolster its prospects. This chapter contains an interview with Maulik Parekh, President & CEO, SPi Global

The construction and real estate sectors make up around 20% of the Philippine economy, slightly ahead of manufacturing, and as of the first quarter of 2014 accounted for 7% of national employment. The industries have been thriving in a climate of political stability and upbeat business sentiment, spurred by growth in overseas workers’ remittances, investments into business process outsourcing and government spending on infrastructure. To alleviate the financing burden and free up funds for other priorities, such as reconstruction and subsidised social housing, the government is fostering greater private participation in strategic infrastructure projects. 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. This chapter contains interviews with Manuelo Paolo A Villar, President and CEO, Vista Land; and Jose E B Antonio, Chairman and CEO, Century Properties Group.

Transport and infrastructure is a key component of the national economy, which will be better able to achieve its potential through improved linkages between economic centres and cities across the archipelago. With public infrastructure spending rising to 4.1% of GDP in 2015, the need for greater private sector participation is crucial to ensuring efficient and effective delivery of projects. Regulatory uncertainty and convoluted bidding procedures have hindered the progress of public works, and righting these issues would ensure the advantages of private sector interest could be realised. Improvements to road infrastructure, investment in existing port facilities and the construction of new ports will take the sector to the next level. This chapter contains interviews with Cosette Canilao, Executive Director, PPP Centre of the Philippines; William K Hotchkiss III, Director-General, Civil Aviation Authority; and Ramon S Ang, Vice-Chairman, President and COO, San Miguel Corporation.

Under the current government, tourism 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. Thanks to an aggressive and highly successful global marketing campaign, brand awareness is on the rise. Momentum looks to continue as 2015 has been designated the “Visit the Philippines Year” and is set to include a slate of events throughout the calendar year that commenced with a visit from Pope Francis in January 2015. With plentiful natural endowments and a cultural propensity for service and hospitality, the Philippines is fortunate to possess assets that serve as demand drivers. A boost to infrastructure could ensure more seamless and efficient movement for visitors throughout the country’s various islands. This chapter contains an interview with Ramon R Jimenez Jr, Secretary, Department of Tourism; and a dialogue between Cristino L Naguiat Jr, Chairman and CEO, Philippine Amusement & Gaming Corporation, and Stephen Reilly, COO, Resorts World Manila.