INVESTING IN THE PHILIPPINES IN

2009PHILIPPINE EMBASSY PRAGUEPHILIPPINE EMBASSY PRAGUE

CZECH-ASIA FORUM 2009CZECH-ASIA FORUM 2009KAMPA HOTEL, PRAGUEKAMPA HOTEL, PRAGUE

02 MARCH 200902 MARCH 2009

Population : 92.2 millionGDP growth : 4.6% (Jan-Nov 2008)Forecast in 2009 (GDP) : 3.7 to 4.7%GNP : 5.9% (Jan-Oct 2008)Inflation rate : 7.1% (January 2009)Total external trade : USD105.6 billionBalance of trade : USD7.6 billionExports : USD2.6 billion (Dec. 08)Imports : USD3.3 billion (Dec. 08)Employment rate : 93.2%Literacy rate : 92.3%

PHILIPPINE ECONOMIC RESILIENCY PHILIPPINE ECONOMIC RESILIENCY PLAN 2009PLAN 2009

• Ensure sustainable growth and attain the higher end of the growth targets;

• Save and create as many jobs as possible;

• Protect the most vulnerable sectors – poorest of the poor, returning overseas Filipino workers, and workers in export industries;

• Ensure low and stable prices; and

• Improve competitiveness in preparation for the global economic rebound.

COMPONENTS OF THE ERPCOMPONENTS OF THE ERP• USD3.4 billion increase in the 2009 budget over that of 2008 to hire needed personnel

such as teachers, policemen, soldiers and doctors; repair and rehabilitation of government buildings and fast-track purchases of supplies and equipment; strengthen agriculture support; implement quick-disbursing high-impact projects; and expand social protection programs

• USD851 million earmarked for tax cuts for low and middle income earners (USD425 billion) and the scheduled cut in corporate income taxes (USD425 million) as provided in the Revised Value Added Tax Law.

• USD2.2 billion from GOCCs, GFIs and the private sector to fund infrastructure projects

• USD640 million to support pension disbursement and improve access to health services

• USD5.4 million support to returning overseas workers

• Creation of 180,000 jobs under the 6-month Emergency Employment Program

INVESTMENT PRIORITY AREASINVESTMENT PRIORITY AREAS

• High-end, high-value investments

• Services in IT, health & wellness, ecotourism, logistics & the retirement industry 

• Infrastructure

• Manufacturing

• Mining

North Luzon

Luzon Urban Beltway

Central Philippines

Mindanao

Cyber Corridor

THE THE SUPERREGIONSUPERREGION

SS

INVESTMENT OPPORTUNITIES IN INVESTMENT OPPORTUNITIES IN INFRASTRUCTUREINFRASTRUCTURE

• Physical infrastructure – highways, railways, roads and bridges

• Power generation – those utilizing indigenous and renewable energy sources, and other   energy sources adopting environmentally-friendly except oil-fired projects

• Agricultural Infrastructure – irrigation, pre and post harvest storage, agro processing and   packaging facilities, transportation, and bulk storage

• Mass housing – low-cost and socialized housing projects

INVESTMENT OPPORTUNITIES IN INVESTMENT OPPORTUNITIES IN INFRASTRUCTUREINFRASTRUCTURE

• Bulk water supply • Mass rail transport • Pipeline projects for oil and gas – transport of

petroleum products and natural gas, petrochemicals,   and similar products

• Projects under Build-Operate-Transfer (BOT) Law• Pipeline projects for oil and gas – such as passenger

and cargo shipping, warehousing, ports,   terminals, and cargo air transport

Power and Electrification

21.10%(USD8.0 b)

Water Resources14.64%

(USD5.5b)

Communications1.25%

(USD475 m)

Social Infrastructure

9.60%(USD3.6 b)

Support to ARCs1.44%

(USD547 m)

Medium Term Public Investment Plan for Infrastructure Development

Total investments = USD38 billion 4.45% of total GDP for 2006-2010

Transportation 51.96%

(USD19.7 m)

Water Transport4%

USD700 mAir Transport

12%USD2.3 b

Allocation of Transport Infrastructure Investment

Urban/Rail41%

USD8.1 b

Roads and Bridges43%

USD8.6 b

Phil Govt 44%

Other Sources 4%LGUs

2%Private 27%

GOCCs/GFIs 23%

WHY INVEST IN THE PHILIPPINES?WHY INVEST IN THE PHILIPPINES?

• quality manpower resources • strategic business location• liberalized and business friendly economy• hospitable lifestyle• unlimited business opportunities

SOURCES OF INFORMATION FOR WOULD-BE SOURCES OF INFORMATION FOR WOULD-BE INVESTORSINVESTORS

• Board of Investments (http://www.boi.gov.ph) – for information on general investment guidelines

• Agencies of the Philippine government (http://www.gov.ph) - main government portal

• http://tradelinephil.dti.gov.ph/betp/dti2.main

Thank you!