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Though the Philippines lags behind in several measures of technology penetration, scoring 36 out of 100 in a World Economic Forum report on “network readiness”, internet cafes are plentiful and Filipinos have the highest Facebook usage rate in the world. This drives the market for online games, which are very popular with the Philippines’ substantial young population. Software in general is developing as a viable business model, with 28% export revenue growth in 2010 alone. In telecoms, the Philippines’ two mobile operators are still adding customers, reaching 92% penetration in 2011. Price wars have driven rates for voice far down, although operators still enjoy some of the biggest profit margins in the world. Once those margins come down, future revenue growth will shift to web-enabled phones and their 3G and 4G services, which are only now coming into fashion. This section features an interview with Enrique Gonzalez, CEO, Intellectual Property Ventures Group (IPVG).

Mining companies have flocked to these islands for years to take advantage of the country’s vast mineral resources. The Philippines ranks third in gold reserves, fourth in copper, and fifth in nickel worldwide. However, an upsurge in anti-mining and environmental awareness has contributed to a difficult regulatory environment, with some jurisdictions imposing local mining bans. Investment in the sector at present is a high-risk, high-reward venture, which has pushed some multinationals to countries with looser restrictions. This section features interviews with Ramon J P Paje, Secretary, Department of Environment and Natural Resources (DENR); and Artemio Disini, Chairman, Chamber of Mines of the Philippines.

The construction sector looks set to benefit from a major PPP initiative that should see its first big projects go to tender in 2012. Meanwhile, Manila is seeing robust growth, and the BPO boom is driving office development in Cebu City and beyond. There is demand for housing at all incomes levels, and while developers have typically focused on the high-margin luxury housing, affordable housing could yet be an attractive business. Furthermore, the Philippines’ underdeveloped tourist market gives developers and construction firms an opportunity to construct resorts and other infrastructure for visitors. This section features interviews with David Consunji, Chairman, DMCI Holdings; Joseph M Yap, CEO, Filinvest Land; and Jacques Dupasquier, Chairman, The Net Group.

Connecting the Philippines’ thousands of islands is a daunting logistical task, made harder by recent setbacks like US and EU downgrades of the civil aviation authority’s safety rating. The government is looking to implement its 2010 National Transportation Policy Agenda in part through a $12.8bn PPP plan unveiled in October 2011. Eight airport projects will be put to tender in 2012, and airline liberalisation is helping smaller carriers overtake the nation’s flagship. The government is also making major investments in roads and expressways, “nautical highways” and mass transit for rural areas. This section includes interviews with Lance Gokongwei, President and CEO, Cebu Pacific Air, and Doris M Ho, President and CEO, Magsaysay Group of Companies.

The Philippines tourism industry is hoping to emerge from a challenging few years that saw the country blacklisted by Hong Kong and the civil aviation authority downgraded by the US and EU. Although the growth in visitors during those years was solid, arrivals figures are barely a quarter of those seen in powerhouses like Thailand. The country has shifted its international tourism promotion to Asia, especially markets like South Korea. Meanwhile, domestic tourism dominates the sector’s revenues, providing some 80% of tourism income. This chapter features interviews with Ramon Jimenez, Secretary, Department of Tourism (DoT), and Cristino L Naguiat Jr, Chairman and CEO, Philippine Amusement and Gaming Corporation (PAGCOR).

BPO has been a major growth area for the Philippines. The country benefits greatly from a well-educated, English-speaking labour force and now the industry is looking to crack the higher-value knowledge processing outsourcing (KPO) market, taking on back-office tasks like health care information management and legal transcription. With growth of 10-15% anticipated for the medium term, the outlook for the sector is rosy. Moreover, the BPO boom is sparking development and driving the real estate market in secondary cities, which reduces the economic orientation toward Manila. This section includes an interview with Lito Tayag, Country Managing Director, Accenture.