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The Philippine Stock Exchange had the second-best performance among Asian equity markets in 2013. It hit 38 all-time records during the year, broke 6000 for the first time in January 2013, 6500 in Feruary, and 7000 in April. The challenge is now to build on this strong foundation, further developing the systems, institutions, and regulations that will guarantee the market’s continued success going forward. Efforts to expand the investor base and the instruments on offer should support continued expansion. This chapter contains interviews with Hans Sicat, President, Philippine Stock Exchange; and Eduardo Francisco, President, BDO Capital & Investment Corporation, and Co-Chair, Capital Market Development Council.

From expansion of 18.4% in the last quarter of 2012 to 32% in the first quarter of 2013, the construction industry has shown consistent double-digit growth of late. According to the Philippine Development Plan 2011-16, the government intends to increase infrastructure spending to almost 5% of GDP by 2016. Rapid urbanisation and the pace of construction are likely to add to increasing demand for water, energy, roads, airports, and other transport developments. The outlook for the real estate sector looks positive as demand for quality housing, office and retail space is expected to remain high in step with economic growth. Amidst optimism in the sector, however, there are concerns that increasing property prices could create a bubble and drive up inflation. To some degree, demand-side pressure could be eased as new office and residence projects are completed and more space becomes available throughout the country. This chapter contains interviews with Don H Lee, President, Lafarge Holdings (Philippines); Michael Cosiquien, Chairman & CEO, Megawide Construction Corporation; and Ambassador Amable R Aguiluz V, Chairman, Picar Development.

While other countries in the region may have been taking the spotlight as top performers, the Philippines has been recording steady and continuous growth. Indeed, the country has not had a serious annual drop in GDP since 1985. Going forward, expectations are positive. While the IMF has been reducing growth forecasts in the region, the organisation’s 2014 prediction for the Philippines is staying stable at 6%. The economy’s strong fundamentals have received the recognition of the IMF and international credit rankings agencies; however, greater investment will be key to unlocking the country’s full potential. This chapter contains interviews with Cesar V Purisima, Secretary, Department of Finance; Roberto F Ocampo, Former Secretary of Finance, and Co-Vice Chairman, Makati Business Club; Guillermo Luz, Co-Chairman, Private Sector, National Competitiveness Council (NCC); and Miguel Varela, President, the Philippine Chamber of Commerce and Industry (PCCI).

Reforms to the local school system and increased funding are expected to support improved outcomes in what is a large and logistically challenging sector. The administration of Benigno Aquino III has significantly raised the budget and introduced sweeping reforms that are aimed at addressing access, quality and human resource shortcomings. Reforms have opened up new business opportunities for service providers and private investors. Although the sector caps foreign equity participation at 40% for the most part, new opportunities in technical and vocational training could emerge by 2016. This chapter contains an interview with Alfredo Pascual, President, University of the Philippines.

The emergence of new hydrocarbons fields has helped the Philippine energy sector make up for declining output starting in the mid-1990s. While primary energy demand continues to outstrip diminishing domestic production, output from relatively recently exploited reserves are offsetting maturing blocks as the sector looks to implement a strategy of efficiency, diversification and further exploration and development. This chapter contains interviews with Jericho L Petilla, Secretary, Department of Energy; and Oscar Reyes, President and CEO, Manila Electric Company.

By including everyone under a health insurance coverage scheme and ensuring affordable drugs reach all socioeconomic groups, the Philippines is setting an example on how to tackle the problem of the high cost of medical care and social inclusion. The Philippine experiment of combining public spending on preventative health care and medical coverage with private delivery holds the promise of resolving the challenge of meeting public health goals with scarce resources. It may also serve as a model for public-private partnerships (PPPs), in which the health sector emerges as a driver of growth and employment opportunities. The government’s focus on promoting medical tourism and the health care BPO industry provides an enabling environment for future investments. This chapter contains an interview with Clinton Campos Hess, President & CEO, United Laboratories.