The Philippines is a “moderately attractive” location for investments, especially among the 122 countries that China has signed agreements with respect to its Belt and Road Initiative (BRI).
A report jointly issued by American consultancy Deloitte and Shanghai Municipal Commission of Commerce described the Philippines as particularly good for investments in manufacturing, information technology, agriculture and transportation infrastructure.
This is so “[d]ue to the abundant labor resources of the Philippines and its natural environment suitable for the four industries mentioned.”
The 226-page report, which is the second Belt and Road Countries Investment Index Report, discusses the latest trends in BRI investment opportunities based on data from 2017 and 2018.
These data include those from the World Bank, International Monetary Fund, Moody’s Investor Service and China’s Ministry of Commerce.
“The Philippines has a high macroeconomic attractiveness score and performs well,” Deloitte said.
“It’s the scale of its economy, labor supply and cost, although there is still room to improve its tax burden,” it added. “Its investment risk score is moderate. Scores for business environment risk and political risk are low.
The report identified favorable factors in the Philippines, including “obvious advantages” in human resources, broad prospects for domestic demand, abundant resources and energy, and preferential tariffs from Europe and the United States.
Regarding infrastructure, Deloitte noted that investment was estimated to reach 7.4 percent of gross domestic product by 2022 based on the Philippine Development Plan 2017-2022.
“The government recently announced 75 flagship projects to be carried out or completed by 2022, covering railways, bridges, airports and dams,” the report said.