Bright economic prospects continue to boost Philippine shares, according to an article in The Philippine Star (January 10, 2012 issue). Kristine Liu of Xinhuanet.com wrote that “Investors’ optimism on the Philippine economy continue to send share prices climbing on Tuesday (Jan 10, 2012) to a new record high of 4,591.26 before tapering off by the final bell.”
This positive outlook on the country’s economy is shared by a lot of businessmen. Babe Romualdez wrote in Spybits (of The Philippine Star) a couple of weeks ago that the Filipinos’ optimism is “now paying off judging from the positive projections of financial analysts and experts. It would seem that 2012 will be a relatively good year for the Philippines despite the economic downturn that European countries are experiencing due to the continuing debt crisis.”
In an article in the Philippine Daily Inquirer last week, First Metro Investment Corp. (FMIC), a unit of the Metrobank Group, said that the economy will grow by 5 percent to 6 percent this year on government spending, consumer demand and overseas Filipino workers’ (OFW) remittances. FMIC is “cautiously optimistic” about the Philippine economy, noting current indicators point to robust investment inflows, strong market appetite, lower borrowing cost, ample liquidity and faster capacity to pay debt. In the same article, FMIC Chair Francisco Sebastian said, “The outlook for 2012 is very positive. The country is in very good shape with its macro-economic fundamentals still intact.”
This bright outlook for the Philippine economy has caused many Filipinos living and working abroad to explore investing in the homeland. In the West Coast, the better man to ask when it comes to doing business in the Philippines, especially for small and medium sized companies (companies worth up to $300 million) is none other than Philippine Trade and Investment Center (PTIC) Trade Representative Mr. Archimedes “Archie” Gomez.
Career and credentials
In his office at the Philippine Trade and Investment Center at 3250 Wilshire Boulevard in Los Angeles, Gomez services and develops trade and investment opportunities within the jurisdictional coverage of the LA Consulate, Honolulu Consulate and the Philippine Embassy in Mexico.
Prior to his posting in the US, Gomez served as a Commercial Attaché in China for 5½ years. During this stint, he facilitated the increase in export of both traditional and non-traditional products from the Philippines to China. He was also instrumental in organizing and registering the Philippines-China Chamber of Commerce—one of the 19 accredited Chambers of Commerce in China and the only one with office outside of Beijing.
Before working for the Department of Trade and Industry, Gomez was Bank Executive Officer at Land Bank of the Philippines for 11 years. His responsibilities included evaluating and determining the feasibility of agribusiness loans, prior to their approval by the Bank’s top management.
Gomez graduated with a degree in BS Agricultural Engineering and is a Registered Professional Agricultural Engineer. He also holds a Master in Business Administration degree from Ateneo de Manila University and a Master in Applied Business Economics degree from the University of Asia & the Pacific.
Sound investment
“Doing business or investing in the Philippines is really a good thing to do, especially now when inflation has eased and the business outlook is bright. There are several sectors they can look at. We at the Philippine Consulate General and Philippine Trade and Investment Center (PTIC) suggest any of the following sectors: agribusiness, business process outsourcing, electronics, mining, housing, public-private partnership (PPP) and tourism facilities,” explained Gomez.
According to Gomez, those who want to invest in the Philippines get very good fiscal and non-fiscal incentives. The fiscal incentives include from 4-year (non-pioneering) to 6-year (pioneering) “income tax holiday” and 3 years for project expansion, which means they don’t have to pay income taxes for the first few years available for companies that register with the Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA). Clark Development Corporation (CDC) and Subic Bay Metropolitan Authority (SBMA) are the other two (2) economic zones that offer incentives to foreign investors. The non-fiscal incentives include, among others, issuance of special investors’ resident visa for foreign investors and immediate family.
Investment opportunities for Fil-Ams
For Fil-Ams who plan to invest or retire in the Philippines, Archie says, “ Fil-Ams naturally want to stretch their savings and pension in the Philippines. They can do this through a variety of ways. One of the better investment opportunities is in agri-business. They can go into poultry or piggery through contract growing scheme with the like of San Miguel Food, Inc. (SMFI) and other known Philippine poultry and piggery integrators which will assure them of a ready market for their products. Or, they can also try franchising, which can go anywhere from $3,000 to $1 Million. However, I suggest they check out franchisors with the Philippine Franchising Authority to guarantee their security, and good quality control, system and sure supplies of raw materials.”
Another great area for investment is in the coconut industry. “The Philippines is the world’s largest supplier of dessicated coconut, but the country cannot still meet the demand. There’s also a big demand for coconut oil, coconut coir, coco peat and coconut water,” reported Archie.
For more in depth discussion on the many ways to stretch your dollars by investing in the Philippines, readers may contact Archie at (213) 822-4479 or (213) 388-1029, or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
(www.asianjournal.com)
(LA Midweek Jan 25-27, 2012 MDWK pg.2)
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