Philippines
Economy
The main crops in the Philippines agricultural sector are corn,
rice, coconuts, copra, bananas and sugar cane. The production of
timber, once a main export earner, has been suspended owing to severe
deforestation.
A moderately sized mining industry produces copper, gold, silver,
nickel and coal. Another source of revenue is offshore oil production
which is in its initial stages. The country's current economic development
has come from the industrial sector, with food processing, oil refining,
and the production of chemicals, electrical machinery, metal goods
and textiles.
Economic stimulants
intended to lure foreign investment capital
and the creation of 5 export processing zones (EPZ), with concessionary
tax rates and tariffs, produced strong expansion from the early to
mid-1990s. Growth came to a crashing halt in late 1997 when the
sudden decrease of the region’s currencies brought stock-markets
crashing, high inflation, the cessation of foreign investment and
a large budget deficit. El Niño, the weather system which
brings periodic havoc upon the Philippines, then
exacerbated the situation
further.
As one of the countries most affected by the 1997 Asian financial
crisis, the Philippines has since picked up fairly well. Yearly expansion is 4.5%, while industrial production is up by six
per cent after several years of decrease. Foreign aid, which include
a US$100 million injection from the USA in 2002, helped the country’s
bottomline. The weak spot though is unemployment that has increased
gradually during the last few years and now stands at 11%.
The long term economic prospects for the Philippines depends on
the Government’s strength in pursuing particular and overdue
reforms to the tax and banking systems as well as improvements to
the country’s shaky infrastructure. The Philippines is a member
of the Association of South East Asian Nations and the Asian Development
Bank. It enjoys a trade surplus with most of its main trading partners,
including USA, the UK and the Netherlands.
Doing
Business in the Philippines
The
weather condition
is almost always warm and humid so short-sleeved shirts
with a tie should be worn for business trips. Although many offices
are air-conditioned, it is recommended to wear safari suits or a
long-sleeved Filipino barong tagalog when meeting top business
officials and executives. Appointments are necessary and it is customary
to exchange business cards. English is widely spoken and the Filipinos
have a US business style. The ideal time to visit the Philippines
for business is from October to November and January to May. It
is not recommended to visit around Christmas and Easter as delays
tend to be inescapable.
Office hours: Normally
Monday to Friday from 8.00 am to 12 noon and 1.00 pm to 5.00 pm, but this varies. Some
personal offices are open on Saturday from 8.00 am to 12 noon.
Commercial Information
The following organisation's and groups can provide advice:
In London:
Philippine Trade and Investment Promotion Centre, 1a Cumberland
House, Kensington Court, London W8 5NX, UK (telephone : (020) 7937
1898; fax: (020) 7937 2747
In Manila:
Philippine
Chamber of Commerce and Industry, 14th Floor Multinational Bancorporation
Centre, 6805 Ayala Avenue, Makati City, Philippines (tel: (2) 844
5713; fax: (2) 843 4102
Conferences
and Conventions
Plenty of establishments belong to the Philippine Convention and
Visitors Corporation (PCVC) with offices in New York, Tokyo and
Sydney. Contact the PCVC for more information. |
