Reap Financial Benefits by Investing or Doing Business in the Philippines.

The Philippines is one of the few places left in the world, where a person with good business acumen can still be
incredibly successful. And, if interested in living here, can also enjoy a great lifestyle at a very affordable cost.
However, here, as anywhere else in the world, you find many unscrupulous individuals who will gladly assist you in
investing your money, usually in their own bank accounts. Before you venture into business in the Philippines, be
sure to do your ground work. Check your potential business partners carefully, get good solid advice from local
business consultants who know the local, often confusing, laws and regulations. We have developed a network of
reliable, trustworthy people, who will guide you on the way to financial success in the economic power center of
the world, Asia.

1. Strategic Location

  •     Centrally located in the world's fastest growing region - Asia.
  •     Tropical geographic climate.


2. High Quality Labor

  •     Largest English-speaking population in Asia.
  •     One of the most highly educated labor forces in the region, with a literacy rate of 93.5%.
  •     Large availability of skilled managerial, technical, and computer-literate personnel.
  •     Highly competitive and affordable labor rates.

LABOR RATINGS IN SELECTED ASIAN COUNTRIES  based on the IMF and Asian Development Bank reports from 1999 - 2003.
                                            
    Managerial Labor                             Production Labor
                                                 Quality         Availability         Cost                 Quality         Availability         Cost
    Philippines                                3                      1                      2                       3                      1                       2
    Vietnam                                   10                      5                      1                       3                      1                      1
    Malaysia                                    5                      5                      5                       3                      3                       3
    China                                        10                    10                     1                        4                      1                       2
    Indonesia                                10                    10                      2                       5                      1                       1
    Thailand                                  10                    10                      4                        4                      2                      1
    Japan                                         1                      1                    10                        1                   10                    10
    Singapore                                 1                    10                       8                       1                    10                      8
    Taiwan                                       1                      8                       9                       1                      8                      9
    Hong Kong                                1                    10                     10                       1                    10                      8
    South Korea                              5                   10                       9                       1                      8                       7

    Ratings:
    1 - best grade available
    5 - average grade
    10 - worst grade


3.  Positive Business and Economic Environment

  • Government commitment to economic development and liberal open market policy, stable business  environment.
  • More areas of investment now open to foreign equity of up to 100%.
  • Investment incentives include tax holidays, tax credits, duty-free importation of capital equipment, liberal foreign exchange policy,
    establishment of special investment zones.
  • Ongoing government and private development and support of infrastructure including roads, air and sea ports, water and power supply,
    telecommunication systems.
  • High quality lifestyle at an affordable cost of living.


4.  Incentives and Restrictions
    A foreign investor is offered a lot of incentives when investing in the Philippines. To develop the commitment of foreign investors the land
    lease times were prolonged in January 1995. The lease contract can be made for 50 years and be renewed once for another 25 years.

    Restrictions on foreign participation are mentioned in three negative lists. These lists are administered by the National Economic and
    Development Authority (NEDA). The division into domestic and export enterprises is relevant when talking about investment incentives. The
    basic idea is not to offer incentives to companies that would use the benefit to compete in the Philippine market with local companies. A
    domestic market enterprise produces goods or services solely for the domestic market. Domestic market enterprises with more than 40%
    foreign participation should have a paid-up capital of at least USD 500 000, if advanced technology is not used.

    An export enterprise is a manufacturing, processing or service enterprise exporting at least 60% of its output. Also, a trader buying
    domestically manufactured products and exporting at least 60% of the purchase is regarded as an export enterprise. If the production is not
    included on A or B negative lists, there are no restrictions concerning foreign ownership.


5.  The Special Economic Zones (Subic, Clark, Mactan)

    If the investment is made in a Special Economic Zone (earlier Export Processing Zone), there are no restrictions on foreign participation.
    However, these companies are required to export the whole production, unless the company has received specific approval from the
    Philippine Economic Zone Authority (PEZA). This approval is always made in a specific situation and may not be issued beforehand. Once
    the approval is gained, the domestic sales cannot exceed 30% of the production.
Makati Business
District
Subic Bay Freeway
Resort at Subic Bay
One of many hotels at
Clark
MEPZ at Mactan, Cebu