by: Jason dela Torre

In a bid to renew investor confidence and create more job opportunities to bolster the Philippine economy, President Benigno Aquino III is expected to pursue public-private partnerships in the financing and construction of key government infrastructure projects. The Aquino administration believes that public-partnerships are crucial to reducing the Philippines’ growing budget deficit, and ensuring the financial mobility of local governments in setting up infrastructure projects geared toward the overall improvement of their respective communities. Aquino is optimistic that in spite of his government’s lack of funding, their economic goals will be achieved through the institution of public-private partnerships in different sectors.

In a bid to boost the stock market, the Real Estate Investment Trust (REIT) Act was recently passed into law, marking the fourth legislative attempt to bolster economic growth and development in Philippine markets. The Real Estate Investment Trust (REIT) Act of 2009 (Republic Act No. 9856) promises to promote economic development in capital markets, democratize the distribution of wealth by increasing Filipino participation in the Philippine real estate market, enable the financing of infrastructure and other projects through the management of capital markets, and provide protection to the investing public.

In his first state of the nation address (SONA) on July 26, 2010, newly elected president Benigno Aquino III vowed to boost foreign investments in the country, fight corruption within the government sector and create job opportunities for the local workforce. Aquino promised to “boost collection and fight corruption in the tax and customs bureaus” and to provide for the education, housing, and health care needs of working class Filipinos.

Legal Process Outsourcing (LPO) is one of the fastest growing sectors in the Philippine BPO industry. This is mainly due to the financial difficulties currently experienced by many US, Australia, Canadian and British law firms, as a consequence of shrinking legal budgets. According to research conducted by knowledge process outsourcing firm Evalueserve, the global LPO industry employed over 5,200 professionals in the first quarter of 2010 with India and the Philippines leading the pack with an estimated annual profit of USD 300 million. Legal Offshoring services are expected to employ over 19,000 professionals and post an annual revenue of USD 960 million by December of 2015. Some LPO firms in India have even predicted an annual growth of as much as 200%, citing recession-related litigation in the U.S. However, their expectations have not yet been realized. This is because U.S. lawyers themselves are now looking at alternative options to address the legal recession, and cut down on job losses.

The Philippines is becoming a prime medical tourism destination for Americans and foreign nationals as healthcare costs in the U.S. and around the world continue to rise.  The Philippine Department of Tourism reports that the number of overseas patients visiting the Philippines is increasing by as much as 88%, from 60,000 clients in 2007 to 600,000 in 2009. The Philippine Medical Tourism industry has registered a gross revenue of $350 million since it’s establishment in 2006. Furthermore, the DOT expects a $3 billion profit by 2015, with as much as 1,000,000 foreign patients arriving annually.

The rise of the Philippine BPO Industry has seen an accompanied increase in staff leasing services, including the recruitment of SEO Specialists, Web developers, Webmasters, Copywriters, Programmers, Data Encoders, Virtual Assistants, and Contact Center Agents.

Staff leasing is considered a hassle-free hiring solution for foreign and local companies doing business in the Philippines. Not only does it eliminate Human Resource (HR) costs and payroll, staff leasing also minimizes administrative responsibilities, and enables small and medium-sized companies to expand their business operations to different client markets. Larger companies also benefit from the arrangement, which offers cost-effective human resource management, employee payroll, compensation services, risk management assistance, training, and development.

A legacy of the Arroyo government, the National Tourism Act (R.A. 9593) has brought Philippine tourism to greater heights, boosting industry growth to 6.64% in the first quarter of 2010. According to statistics from the Department of Tourism, foreign arrivals increased by 7.89%, and domestic tourism by 6.09%. Metro Manila ranked first as the most visited destination in the Philippines, with a 37.10% growth rate and over 437,170 tourists. Cebu placed second with a 3% growth rate and 435,987 tourists, while Camarines Sur was in third place with 348,139 tourists. According to tourism secretary Joseph “Ace” Durano, the government expects at least 5 million visitors in 2010.

Serviced offices offer a much needed convenience to foreign and local companies setting up business in the Philippines. These offices usually come fully-furnished, and are equipped by a separate facility management company. The managing company purchases the individual desks, office space, and operating equipment, then rents them out to client companies. Also referred to as executive suites, managed offices, business centers, or executive centers, serviced offices boast a large number of benefits, including plug and play options, prominent business adresses, and flexible short term contracts. These types of offices often have more flexible rental terms, compared to conventional leased office space, which are subject to more restrictive leases. Additional office space is easily allocated within short notice, making it more convenient for client companies in general, should a particular business change in size. Serviced offices are also more cost-effective, owing to the fact that client companies do not require to set aside capital for start-up costs and solicitor’s fees.

Subic Bay, Philippines is bordered on the east by Zambales mountains and the South China Sea on the west. A former US Naval base, Subic is now a freeport zone and a gateway for the transportation of goods. And, while it’s topography is more of a jungle paradise, technology, infrastructure, and industry have changed the landscape and the standard of living in the community. Real estate and BPO companies doing business in the Philippines are rising fast in the area and investors are now looking at Subic as a top BPO destination in the country.

Historic Manila Bay, considered one of the best natural harbors in Southeast Asia, is currently experiencing a real estate boom. The bay serves as the primary port of Manila and is famous for its picturesque sunsets. Entry to Manila Bay is flanked by several islands, the largest among them being Corregidor, which is 3 kilometers from Bataan and, along with the island of Caballo, separates the mouth of the bay into the North and South Channels.