Following in the footsteps of global tech hubs Singapore and Hong Kong, the Philippines is slowly fostering a tech startup ecosystem to facilitate the market-entry and participation of new entrants to its economic marketplace. The obvious advantages of a huge consumer base, high mobile penetration, and enormous potential for digitization in untapped resources – along with a large, English-speaking population and cost-effective technical, marketing, and back-office support – make the country an ideal test market for startup companies looking to develop their business models in an economy with a digital infrastructure that is still in its infancy.
The Filipino workforce is among the most compelling advantages that the Philippines has over any other Asian country. With higher education priority, the literacy rate in the country is 96.6% – among the highest.
Registration of foreign/non-resident investments with the Bangko Sentral ng Pilipinas (BSP or Central Bank of the Philippines) is not mandatory. However, it is required when foreign exchange (FX) used to fund repatriation of the capital or remittance of dividends/profits is purchased from the Philippine banking system.
Businesses that wish to engage in import, export, or distribution of products in the Philippines must plan for FDA registration during the set-up phase of the business. Several product categories are regulated by the FDA, and products that fall within these categories require product registration.
The Philippine Food and Drug Administration (FDA) is the country’s official government arm that protects the health of the public by assuring safe, efficient, and quality drugs, food products, food supplements, cosmetics, household hazardous products, household urban hazardous products, and medical devices.
Last March 27, 2013, the Republic of the Philippines received its first Investment Grade Status from the rating agency, Fitch Group. From a previous ranking of BB+, the status of the Philippines has been upgraded to BBB-.
Foreign direct investment inflows have never been better as confidence increases in the Philippine business environment. Foreign direct investment increased by 10% by the end of 2012. Comparing from the previous year, the amount increased from $1.85 billion in 2011, a significant amount in itself, to an even more impressive $2 billion in 2012.