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The Time is Now: Philippines, the Best Place to Invest
February 13, 2023 by Brianna Yparraguirre
Philippines: Bouncing back after the pandemic
The worldwide spread of the Covid-19 pandemic was devastating for everyone. Many lives were put on hold and business opportunities were postponed. Moreover, as the Philippines is a developing country, Filipinos faced massive difficulty since the country relies on exports business opportunities and tourism. However, after the dreadful events caused by the pandemic, the Philippines is rising back to a good start this year as it is projected that the year 2023 is off for an optimistic forecast.
Health experts are affirmative that the pandemic will surely meet its endemic state in the near future. According to the article written by Nicanor Austriaco via Inquirer.net last 2022, several worldwide scientific experts have hypothesized that COVID-19 will become endemic once a large enough proportion of the population has contracted the virus a few times. This assertion results from the finding that naturally acquired immunity seem to endure longer than vaccine-induced immunity, which deteriorates more quickly. They argue that while today's societies are already sufficiently protected from COVID-19 by vaccination, the public shouldn't be particularly concerned about the continuous spread of mild variants because these mild instances will actually hasten the shift to endemic COVID-19. In support of this claim, an infectious disease health professional, Dr. Rontgene Solante mentioned that the Philippines is already close to making the switch from a pandemic to an endemic stage of the coronavirus sickness.
These predictions are evident at the beginning of the year 2023, as the continuous recovery of business activities can be dominantly observed. Moreover, tourism is leading to a fast recovery as well since the lifting of the travel ban has been implemented.
The claims and forecasts of economic experts sealed the deal to finally declare that the Philippines has officially bounced back from the tragedy of the pandemic. The "worst is over," according to Finance Secretary Benjamin E. Diokno, and there are many reasons to be positive this year. Despite being a threat, the pandemic is essentially a thing of the past thanks to easily accessible vaccines. Furthermore, according to the Development Budget Coordination Committee (DBCC), this year's domestic economy would expand by 6-7 percent. Even among peers in the area, this growth rate is still among the greatest, if not the highest.
Promoting Foreign investment.
Amenah Pangandaman, the budget secretary, said as she urged more European investors to come to the nation. The nation is "on pace" to see economic success. In London, England, at the Philippine Economic Briefing (PEB), Pangandaman praised the steady economic growth of the nation despite external difficulties. The budget chief mentioned that investing in the Philippines is now a good idea. The administration is diligent. The Philippine economy is growing quickly, the head of the budget remarked.
Pangandaman continued by saying that the government prioritizes social protection, infrastructure development, health, and education. The government boosted infrastructure spending to an average of 5% of the country's GDP starting with the previous president Rodrigo Duterte's administration, which is twice the budget of the governments before him.
She further added that the Philippine economy is also expanding with digital infrastructure. Finally, she pointed out that the allocation for adaptation and mitigation of climate change in 2023 is up 56.4 percent from that in 2018.
With her optimistic claims, foreign companies must start investing in the Philippines. Investors from first-world countries, especially European investors should have a glimpse of a positive business opportunity in the Philippines.
The Philippines is the Best Country to invest in among Southeast Asian Countries
Countries including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, and Vietnam make up the 11 nations that make up Southeast Asia (SEA). These nations are renowned for their vibrant and hospitable economies, robust consumer spending, and abundant natural resources and travel opportunities.
According to Matthew Du, currently, the economy of the Philippines is growing at the quickest rate in SEA, and positive growth prospects are anticipated going forward. Moreover, the promising performance of the Philippine economy in 2022 delivered the nation's gross domestic product (GDP) growth in the first quarter of 2022 has far outpaced the median analyst projection for its economic performance and pre-pandemic level. The Philippine Statistics Authority (PSA) reports that the nation's GDP grew by an impressive 8.3 percent in the first quarter of 2022, much exceeding the nominal 6.6 percent growth that most analysts and research organizations predicted the nation would see. This number is still greater than the country's strong 7.8 percent growth in the fourth quarter of 2021. This impressive economic performance has elevated the Philippines to the top spot among Southeast Asian competitors for the fastest-growing and recovering economy.
Even before the pandemic, European investors are already drawn to invest in the Philippine premises. As mentioned in Philstar (2018), according to the head of the European Chamber of Commerce of the Philippines (ECCP), despite ongoing worries back in 2018 about political stability and potential changes to the nation's incentive system, investor interest from Europe remained high. Investors from European countries were "extremely interested," according to ECCP president Guenter Taus, in learning more about the country's trade and investment potential.
Why foreign investors must classify the Philippines as an investment opportunity?
In general, investment takes time before its progress becomes visible. Moreover, there were certain fads or trends that died down in a short period of time. But with the proper recognition and distinction between fads and trends. And during the surge of Covid 19, many people are finding it hard to earn money due to the influence of the pandemic. Despite the optimism that the lockdown will end, many lost momentum during the two years of lockdown implementation.
Although the Philippine government agencies are offering investment opportunities in the form of bonds. Bonds are a type of debt that the issuing party commits to pay back eventually which are safer and less risky, just like a real estate investment of a house and lot for sale, unlike investments. However, investments offer a more promising payback. Investment takes a faster return compared to government bonds, but bonds promise a specific date of return which offers the assurance of its return.
In terms of investing in the Philippines, the country is riched in a diverse culture. Moreover, Filipinos are known to be welcoming, and hospitable, as well as always smiling. The country also has a lot to offer in terms of natural resources and a captivating environment. The Philippines' islands also drive foreign tourists to go back and crave more discoveries with the wonders the Philippines can offer. This guarantees good investment opportunities for foreign investors.
Among Southeast Asian Countries, the low-cost standard of living is what foreign investors must look out for. Although the Philippines and Singapore are known countries that can communicate effectively with lingua franca, the English language, Singapore is highly urbanized compared to the Philippines, but the latter country can offer a wonderfully serene escape from city life! Moreover, the country is well known for its variety of natural resources. And the Philippines is popular as an exporter of coconut as well. However, the rise of technological advancement also paved way for the country to take business opportunities by exporting electronic products at low cost.
Ideas for a good investment in the Philippines
The domestic market can be classified as competitive. Investment takes better financial stability and status once reviewed properly and gather all necessary information before its implementation or acquisition. There is a variety of investment options in the Philippines like equity funds, money market funds, unit investment trust funds, or mutual funds. And one of the examples is investing in Philippine Stock Exchange. The stock market is the most well-known investment idea since stocks offer individuals and companies looking to invest their savings or extra cash through the acquisition of securities a suitable market for the trading of securities. PES is also composed of various industries such as Financial, Industrial, Property, Services, and many more.
Foreign investors are highly encouraged to register with the Securities and Exchange Commission since the SEC is the national government regulatory agency in charge of overseeing the business sector in the Philippines. It is also obliged to establish policies and recommendations on issues relating to the securities market as well as to advise Congress and other government bodies on all areas of the securities market. However. foreign companies and investors must acknowledge that the Foreign Investment Act limits foreign investors' ability to purchase up to 100% of the equity in domestic market businesses. This law aims to entice international investors to boost the value of exports, create jobs, develop resources, and contribute to the nation's overall economic growth.
If foreign investors have a limited time in the Philippines, they may opt for money market funds. This is one of the finest short-term investments for capital preservation in a year or less They have investments in government treasury bills, corporate bonds, and other short-term, risk-free securities.
Real Estate investments in the Philippines
There are various investment schemes that are successful in the Philippines but foreign companies and investors must consider investing in the real estate industry as it shows a promising passive income opportunity. Moreover, with the improving infrastructure and amazing tourism potential in the Philippines, there is no denying that this is the right route for investors to take. Real estate property, such as a house and lot for sale is not that hard to manage, even though foreign investors are not required to travel to Philippine premises or visit their purchased property from time to time, it will generate hard-earned money.
Until now, real estate property investment strategy still holds an excellent track record. The invested money will be in good use since real estate investment promises a passive income and less effort is required, unlike reviewing the stock market or trading stocks in a specific time period. Moreover, real estate investment appreciates over time since the value of the land increases over time. hence, the money invested in real estate will also experience an upward trend. Foreign investors don't have to worry about the interest rate since its a much low cost compared to developing countries like the Philippines.
As mentioned, the Philippines is rich in diversity and a serene environment. The wonders of Philippine nature are promising which attracts foreign tourists to choose and come back to the Philippines. With this business opportunity, many foreign investors must take advantage of investment schemes in investing in real estate in the Philippines.
Crown Asia's Pinevale and Pine Suites are the right real estate investment scheme. Many local and foreign tourists choose to come back and witness the beauty of the second summer capital of the Philippines. The province is also rich in history and serene landscapes. The cool climate makes Tagaytay a good place to escape or unwind from stressful days. Furthermore, Tagaytay is the home of one of the smallest volcanoes in the world, Taal Volcano. This is a great opportunity for investors since many tourists are also looking for a premium place to stay in Tagaytay and near cities like Dasmarinas. And both Pinevale and Pine Suites can offer that demand since both condominiums are designed with European architecture and aesthetics which makes the real estate pristine and high-end. Pinevale has advanced technology which features a smart home in its design. Crown Asia's Pine Suites and Pinevale is a great passive income for foreign investors as they can turn the unit into ready-to-rent space for tourists visiting Tagaytay.
Opening savings accounts
Professional fund managers highly encourage foreign investors to also open their own savings accounts in the Philippines as well. Foreign investors must also be meticulous with their investment decisions and thoroughly review their investment portfolio to refrain from any obstacles. Moreover, opening a savings account in the Philippines for foreign investment offers fund security and leads to the start of creating a financial footprint in the country.
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