PHILIPPINESINVESTMENT POTENTIAL

OR RISK?        SEO Technological Marketing

By: Melinda Janeiro

Outline Philippines neighbors and their economic strengths Regional Economic Overview Strong Economic Sectors of Each Neighboring

Country Philippines Economic Complimentary Performance Philippines Economic Competitive Performance Investment Considerations by Management Areas for further research References

Philippines/Southeast Asia Regions

China- 2nd Largest Economy in the World and fastestGrowing in 30 Years.

Malaysia- Large Oil and Natural Gas Exporter and Multi-sector economy

Japan- 3rd Largest Economic Country in the World

Regional EconomiesRegional Economic Overview

China is one of the strongest economic countries in the world

China has a growth rate of 11.6% as of 2006

Malaysia is currently working to attract foreign investments

Regional Economies

Malaysia is a large producer of raw materials,Including Oil and Natural Gas

Malaysia is diligently working to become more domestic &Less dependent on exports.

Japan has a strong labor force And technological advancesJapan is debating on economic reform

Regional Economies Strong Economical Sectors

Country Economic Sectors

Strong Economic

Sectors

Comments

ChinaMining, Ore Processing, Machine building, Textile and Apparel

Foot Wear, Toys, Electronics, Transportation Equipment, Telecommunications Equipment

Although China is ahead on the

technology they are still very dependent on

exports and imports.

MalaysiaPalm Oil, Rubber,

Textiles, Chemicals, Electronic Equipment,

Wood and Wood Products

Petroleum and Liquefied Natural Gas

Heavily dependent on imports from

electronics, machinery, plastics, vehicles, iron

and steel products.

Continuation of Regional Economies Strong Economical Sectors

Country Economic Sectors

Strong Economic

Sectors

Comments

JapanSteel and Nonferrous Metals, Ships, Chemicals, Textiles, Processed Foods

Motor Vehicles, Electronic Equipment, Machine Tools,

Japan is one of the largest technologically

advanced in Motor Vehicles.

PhilippinesChemicals, wood

products, food processing, petroleum

refining, fishing

Electronics assembly, garments, footwear,

pharmaceuticals

25% of the Philippines exports goes to China trailing by the US at

12%.

Philippines Economic  Complementary Performance

Introduced economic reforms and initiatives to stimulate business growthAnd foreign investments.

Better regulations on Banking systems and Securities market.

Liberalized foreign participation in retail trade

Tariff reduction

Philippines Economic Competitive Performance

The Philippines ranked 43rd in competitiveness among 57 countries

Competitive Factors Ranking

Economic Performance 51 out of 57

Government Efficiency 42 out of 57

Business Efficiency 32 out of 57

Infrastructure 56 out of 57

Investment in Philippines Management Considerations

The Philippines are in an economic down turn and should be closely monitored for improvement.

They depend heavily on exports, however, they are more self Sufficient than China or Japan

They are implementing new reforms for foreign investments.

Even after their drop in rankings they were still very competitive last year.

Conclusion and Areas For Further Research

The Philippines is at this time experiencing a time of economic growth with

an optimistic outlook. Although we might expect national development to

accompany economic growth, various economic, political, and socio-cultural

conditions in the Philippines still present challenges to national development

to be explored further.

ReferencesNational Bureau of Statistics (2004), China Statistical Yearbook, Retrieved from http://www.chinability.com/GDP.htmU.S. Library of Congress (2009), Philippines, Relations with Asian Neighbors, Retrieved from

http://countrystudies.us/philippines/93.htmCentral Intelligence Agency, (2009, October 8), The World Fact book, Malaysia,Retrieved from

https://www.cia.gov/library/publications/the-world-factbook/geos/my.html Central Intelligence Agency, (2009, September 29), The World Fact book, Japan, Retrieved from

https://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlCentral Intelligence Agency (2009, September 30), The World Fact Book, China, Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ch.htmlAsian Development Bank (2006, April 6), Philippines Economic Performance, Asian Development Outlook, Retrieved from http://www.adb.org/Documents/Books/ADO/2006/documents/phi.pdfMontepiedra, M., (2009, July 14), State of Philippines Competitiveness, The Asian Institute of

Management , Retrieved from http://www.theaimblog.com/2009/07/state-of-philippine-competitiveness.html