Global Businesses See the Philippines as a Top Destination in Southeast Asia

With a growing economy, growing population, and growing trade liberalization, global businesses have their eyes set on putting up or expanding their operations in the Philippines, the Hongkong and Shanghai Banking Corporation (HSBC) said in a study entitled, “Global Connections: Connecting the Philippines and The World.” HSBC recently surveyed 3,509 businesses from nine major economies such as China, India, the United Kingdom, France, Germany, the United States of America, Australia, Hongkong, the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Oman, and Kuwait, where 21 percent of those with no current Philippine presence plan to enter the market over the next two years; while 19 percent of those currently operating in the country endeavor to expand operations over the next two years. Businesses also see sales booming by 23.2 percent for the next 12 months, up from the 20.1 percent forecast last year.

HSBC’s study cited “competitive wages, chance to test and develop new products and solutions, supportive government and regulatory environment, increasing domestic consumer income, and a growing digital economy” as the key attributes that make the Philippines an attractive entry point in the Southeast Asian market.

Meanwhile, the study also mentioned key challenges to businesses in the country which include lack of skilled personnel to drive technological growth, cultural differences, and macroeconomic issues such as inflation and high-interest rates. Sustainability concerns also standout as addressing climate change and improving human rights remain among the top issues to tackle.

According to HSBC Philippines President and Chief Executive Officer Sandeep Upal, their study demonstrates the “interest of global business in scaling up in Southeast Asia, especially in the Philippines”. With a young, English-speaking workforce and a growing consumer sector, the Philippines is appealing to these businesses on both the demand and supply sides, making it a top destination for those who want to expand their markets.