Purchase OBG Publications

Despite growing at an average rate of 2.7% between 2002 and 2012, the manufacturing sector’s share of GDP has been eroded by the rapid growth of other sectors, such as construction and services. Hampered by high energy costs, expensive logistics and low infrastructure investment, the manufacturing’s share of GDP has been declining since 2002 in what the Asian Development Bank has warned could be a premature shift away from industrialisation. The government has, however, been increasing its efforts to attract investment and accelerate manufacturing growth, resulting in the country earning an investment grade rating from three major global credit agencies during 2013. Meanwhile, with overall strong growth and key drivers such as business process outsourcing sector expansion and demographics still in place, the Philippines retail sector appears set to continue its relatively rapid expansion. This chapter contains interviews with Leonardo B Dayao, President, Puregold Price Club; and Christopher T Po, President and CEO, Century Pacific Group.

At the end of 2012, the Philippines was home to 79 non-life insurance companies, 29 life insurers and a single reinsurance firm. With a strong history and few limitations and restrictions on foreign investment, the Philippine insurance industry is open, thriving, growing and competitive; however it is widely acknowledged that the sector should be more inclusive, as it currently serves only a small percentage of the population. This is set to change, however, as financial services inclusiveness is not only seen as important to the individual; it is also regarded as a way to improve economic efficiency and promote long-term sustainable growth. This chapter contains an interview with Yvonne S Yuchengco, President and CEO, Malayan Insurance.

In partnership with SyCip Salazar Hernandez & Gatmaitan, OBG explores the legal framework of the Philippines, with a focus on procedures for mergers and consolidations, stockholder appraisal rights, “bulk sale” rules and other subject areas relevant to business and foreign investment. This section includes an interview with Rafael A Morales, Managing Partner, SyCIP Salazar Hernandez & Gatmaitan.

In spite of its vast reserves of minerals, the mining sector is currently only a modest contributor to the economy due to a range of factors that have impeded development. All told, approximately 14.5bn tonnes of metallic minerals (including gold, copper, iron, chromite, nickel, cobalt and platinum) and 67.66bn tonnes of non-metallic minerals, such as sand and gravel, limestone, marble, clay, and other quarry materials lie waiting for the turn of the shovel. Between 2011 and 2012 mineral exports recorded a fall due to a decline in market prices and lower production linked to temporary mine closures. Yet, even with the slow pace of progress being made, there remains hope that the government’s recognition of the sector’s importance will help drive it forward. This chapter contains an interview with Eulalio B Austin Jr., President & CEO, Philex Mining Corporation.

In partnership with Punongbayan & Araullo, OBG explores the Philippine tax system, with a focus on incentives, regulations, reporting framework, and other areas of interest to business and investment in the Philippines. This section also contains an interview with Marivic C Espana, Chairperson and CEO, Punongbayan & Araullo.

The telecommunications sector continues to evolve with the emergence of new technologies, fierce competition between existing operators and the entry of new service providers. Mobile services dominate the telecoms sector. The mobile penetration rate stood at 107% at the end of 2012, though because many people use multiple SIM cards, the actual rate may be closer to 80%. 3G uptake by Filipinos is expected to be moderate in the coming years, with subscriptions forecast to rise to rise by a CAGR of 12.7% between 2012 and 2016. As the IT sector continues to roll out new and updated infrastructure, the expanding services exports segment is likely to see growth. One challenge to this, however, may be securing enough skilled local workers to fill positions. If the government continues to extend incentives to new firms, this is a hurdle that could be overcome. This should leave the industry in a good position to see increasing internet uptake, growing exports and a rising number of jobs for locals. This chapter contains interviews with Manuel V Pangilinan, Chairman, Philippine Long Distance Telephone Company (PLDT); and Gamaliel Asis Cordoba, Commissioner, National Telecommunications Commission.