WITH a growing middle class, strong domestic demand, stable economic policy and GDP growth, even doing business can be more fun in the Philippines.
By providing a dynamic and mature market to further its recovery, the new year is deemed promising for one of Asia’s emerging economies. Forecasts on its economic performance are also expected to expand robustly. The local economy has been showing strong and swift potential for potential investments.
As a result of its commitment on making the country more conducive to investment and entrepreneurship, the Philippines moved up eight places in Forbes’ Best Countries for Business List for 2014. The country was ranked 82nd out of 146, improving its standing from being 90th the previous year.
Forbes noted that the country improved its ranking after showing developments in eight out of 11 indicators: market performance, innovation, monetary freedom, property rights, technology, red tape, corruption and personal freedom.
“The [Philippine] economy has weathered global economic and financial downturns better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a rapidly expanding business process outsourcing industry,” Forbes stated on its website.
Forbes also mentioned that the Philippine economic growth has had limited progress thus far. It also mentioned long term challenges that the country still needs to overcome including: “reforming governance and the judicial system, building infrastructure, improving regulatory predictability, and the ease of doing business, attracting higher levels of local and foreign investments. The Philippine Constitution and the other laws continue to restrict foreign ownership in important activities/sectors (such as land ownership and public utilities).”
The current administration is already undertaking specific steps to address issues raised by foreign observers. Large-scale reforms are continuously implemented to improve the country’s competitiveness such as to simplify administrative procedures, promote rapid growth of small and medium enterprises, and boost foreign trade.
While signposts for the economy are generally in a positive outlook, plenty of risks remain and could undermine the country’s momentum. Despite the current positive social and economic indicators, the government has yet to identify the full extent of the country’s potential. With a thriving democracy and capitalistic attitude, the country is not far from achieving stability and growth, to become dynamic enough to keep itself in pace with its Asian neighbors.
For the country to remain and become even more attractive to foreign investors, reforms must consistently be pushed. Economists will note that the quality of life enhances business climate.
The improved ranking is a welcome development, but a more important matter is to ensure that Filipinos are first to get a share of this rosy outlook.
(AJPress)
