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Smart Cities:Opportunities in the Philippines

Derek Page – Director of Trade & Investment , Manila

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Outline

Philippines: An Overview

Smart Cities: Opportunity Sectors

Recent UK Successes

Why the Philippines?

• Second largest market in ASEAN with 98 million people

• One of the largest English-speaking markets in the world, with a strong affinity with Western culture

• Growing middle class due to rapid development in IT-enabled industries (contact centres, back-room operations and service industries) and substantial remittances from Filipino expats (over US$20bn in 2011)

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Why the Philippines?

Filipino people are eager consumers and early adapters of new trends and technologies; literacy rate is 95%

New government’s thrust is to fight corruption and improve the business environment.

Increase investments in infrastructure & systems for transport, health & education, energy, environment, agriculture, tourism and defence.

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Economic Overview

GDP growth for the first half of 2012 at 6.1%, a good performance against its 2012 target of 5-7% GDP growth.

International rating agencies upgraded the Philippines’ credit rating in 2012

In 2012, the Philippines also jumped 10 notches higher (now ranked 65) in the World Economic Forum’s Global Competitiveness Report.

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Economic Overview

UK exports of goods to the Philippines amounted to over £150 million for the first half of 2012, up 11% compared to the same period in 2011.

In 2011, total UK exports of services was valued at £178 million, up 18% from 2010.

Trade policy: FTAs with ASEAN, Australia, New Zealand and China – could serve as gateway to the region.

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Opportunity Sectors: Digital Environment

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1. Broadband

• Mobile penetration is 96% of the population; more than 1 billion SMS sent everyday

• There are 33.6 million internet users with a major presence in online social networking

• Global leader in contact centres and next to India in IT-enabled backroom operations for multinationals

Opportunity Sectors: Digital Environment

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2. Education

• English is the medium of instruction in all school levels

• Inclusion of e-learning into the curriculum

• Government initiatives to ensure quality education for all Filipinos takes into account the need to raise and ensure competency among teachers;

• Strong interest for many Filipinos to work overseas drives the demand for accreditation and continued education to meet global qualifications

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Opportunity Sectors: Digital Environment

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3. Health

• Modernisation of more than 30 public hospitals, including purchase of equipment and hospital-based IT systems

• Increased private investments in healthcare, wellness, retirement villages and medical tourism (capitalising on well-trained nurses, doctors & caregivers)

• Being an archipelago of 7,100 islands, telehealth/telemedicine & remote patient monitoring would be relevant to reach remote areas.

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Opportunity Sector: Built Environment

• The industry anticipates local construction demand to sustain a growth rate of 10-11% for the next three years.

• Adoption of the Building for Ecologically Responsive Design Excellence (BERDE) green rating system, influenced by the UK’s BREEAM

• An increase in industry demand for sustainable and environmentally sound technologies

• Policy support through legislation and ordinances with incentive components for building green are being pursued

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Opportunity Sector: Energy

• Power sector is moving towards open access and retail electricity trading which will require technologies for smart grid, net metering, etc.

• Industries and commercial establishments have a growing need for energy efficiency due to the current high cost of electricity.

• Government aims to increase the renewable energy share to 40% by 2020 to reach the target of 15,300MW RE capacity by 2030

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Outward Trade Missions to the Philippines

• HVO, PPP & Infrastructure Seminar Mission (November 2012)

• Smart Cities -Smart Living Seminar Mission(December 2012)

• Renewable Energy Seminar Mission

(February 2013)

UK Smart Successes

• GWD Media – secured a deal for bill payment kiosks worth £100,000 in year 1.

• ITRS - establishment of software development and testing facility

• BE Aerospace –manufacturing facility for aircraft galleys

• Rolls Royce – service support contract for high technology aircraft engines

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UKTI MANILA CAN HELP YOU DO BUSINESS IN THE PHILIPPINES.

Contact us to know more about how we can assist.

Derek Page – Director, UKTI ManilaTel: +632 858 2260

Email: Derek.Page@fco.gov.uk