The Philippine economy has grown consistently in recent years thanks to a liberalized economy, stable political environment, and consistent infrastructure expansion. A skilled workforce makes this a thriving business environment. The Philippines has a hospitable culture and a thriving business environment. Globalization has helped make this a thriving place to do business, and the country is now more attractive than ever for foreign investors. Read on to learn more about the investment climate in the Philippines.
The Investment Climate in the Philippines is favorable for infrastructure projects. Infrastructure links the three major islands, fostering business growth and competitiveness. Liberalization of inter-island shipping and domestic air travel has led to improvements in facilities and services. Communication has facilitated redundant international connectivity throughout the country, with fiber optic cables serving as a backbone and satellites providing backup. Economic reforms have prioritized regional growth and turned remote regions into business hubs. A landmark BOT law allows private investors to build infrastructure and turnkey projects before turning them over to the government.
The Investment Climate in the Philippines is still undergoing reforms, including lowering corporate tax rates from 30 percent to 20 percent by 2021. Another reform in the Philippines aims to ease mandatory local employment requirements for foreign investors, known as CREATE Law. A lowered corporate tax rate and improved governance are expected to attract more foreign investment. The Philippines’ investment climate is conducive to infrastructure projects, but it still faces several challenges. Foreign investment is limited by the presence of government corruption and weak rule of law.
Challenges for project owners
The Philippine government is increasingly showing an interest in exploring the PPP model for infrastructure development. This model consists of building physical infrastructure while allowing private companies to operate and manage the facilities once the work is done. The Philippines is particularly keen on applying the PPP model to infrastructure in areas such as transport, education, and water. Another preferred model is the Build-Operate-Transfer (BOT) model, in which the ownership of built facilities transfers to the government.
Collaboration opportunities are abundant in the Philippines. While local firms lack the necessary capabilities to undertake large-scale, complex infrastructure projects, they are willing to partner with foreign firms that have the specialised construction skills and experience needed to complete projects in the country. Currently, there is an underdeveloped market in the Philippines that is ripe for investment, and there are many existing projects that are in need of private-sector involvement.
Impact of climate change
Global warming is a problem that is causing extreme weather conditions and flooding in cities. As sea levels rise, the Philippines will be more prone to flooding and extreme weather events. The impact on the urban poor is more severe than that of high-income groups. It is therefore important to understand how climate change will affect our infrastructure and public health. Here are some tips to help build resilient infrastructure in the Philippines. Listed below are the benefits of climate-resilient infrastructure.
Changing climate patterns and extreme weather events have already wreaked havoc on the infrastructure Philippines. The country has experienced extreme heat and heavy rain in recent years, and the damage is only expected to increase. Moreover, extreme weather events have already damaged a number of infrastructure systems across the country, compromising power grids, roads, and bridges. These issues affect water treatment and public health. But the good news is that climate change can be mitigated by government action and planning.