Singapore eyes up potential in Philippines

Makati, Metro Manila.

Philippines offers a range of enticing factors that are drawing in Singaporean investors.  

The Philippines is growing. Not only is it home to the region’s second largest population, but its economy is taking strides in the right direction too. The three industries of tourism, construction and manufacturing are flourishing, which are in turn aiding the property market. It is therefore unsurprising that investors are keen to get in on the action, Singaporean real estate investments included.

Singapore is taking advantage of the Philippines’ low interest rates making investment in this archipelago of islands even more attractive. There are increasing numbers of foreign firms setting up shop. Businesses such as technology support or call centres that benefit from the cheap labour force the country can offer. All of which need an operational base which is helping to drive the office market.

Last year Singapore injected USD 1.7 billion into the Philippines out of a total USD 29 billion of overseas remittance received. This has a trickle down effect to the rest of the economy. The locals can secure employment and increase their disposable income which is put back into the economy. The retail market has faired particularly well as a result of this increased consumer spending.

The country is also taking steps in order to improve its infrastructure network. This includes travel by road, air, sea and also by rail. A sector that the Philippines hopes Singapore will be part of this growth. The anticipation is for the easier movement of people as well as goods that will help to boost the economy even further.

Clark Green City in Central Luzon has been dubbed as one potential hotspot. Just 80 kilometres from Metro Manila it benefits from a host of infrastructure on its doorstep but another string to its bow is that it has been declared a special economic zone. Subsequently, any foreign owned companies can enjoy certain tax benefits and other incentives put in place to entice even more investors in.