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IiI. philippine competitive advantage
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A. |
People Power |
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The Philippines is ranked #1 in the availability of
knowledge-based jobs and workers worldwide and ranked 4th among Asian
nations in labor quality, according to a survey conducted by the U.S.
based Meta Group. Aside from the huge pool of productive, trainable
and multi-skilled labor force, the Philippines competes in the quality
of its managers and information technology (IT) staff and engineers.
Moreover, the Philippines has one of the highest literacy rates in
the region, with 93.9% of the population capable of being trained
for the required skills and competencies. The unique edge comes from
a high level of proficiency in English (the Philippines is the 3rd
largest English-speaking country in the world).. The Philippine boasts
of a good educational system, with the government offering free primary
(six years) and secondary (four years) education and reasonable yet
competitive tertiary/collegiate education (four years). Many of the
universities and colleges offer IT-related courses and some educational
institutions specialize in training their students in IT. English
and Filipino are the major languages and used as media of instruction,
with English as the official medium for business communication. Some
18.6 million students are in their primary and secondary schooling,
while some 2.4 million students are taking up tertiary education,
1.6 million of which are in private institutions . The five disciplines
with the most number of enrollees are Business Administration, Education
and Teacher Training, Mathematics and Computer Science, Engineering
and Technology and IT, accounting for an estimated 75% of all disciplines
enrolled in. |
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B. |
Location |
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The Philippines is located in Asia - today, the fastest
growing region. Flanked by two great trade routes - the Pacific Ocean
and South China Sea - the Philippines is an ideal base for business,
a critical entry point to over 500 million people in the ASEAN market.
The country is a natural choice as an ASEAN Gateway in the international
shipping and air lanes, particularly European and North American businesses. |
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C. |
First Class Lifestyle |
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The Philippines is the best Asian country in overall
quality of expatriate life, according to the March 2000 survey of
Hong Kong's Political Risk Consultancy Ltd (PERC). The Philippines
ranked third in all countries surveyed - next to Australia and the
U.S. - and was ahead of Singapore and Japan. Rated highly were its
cultural compatibility with expatriates, its housing, sporting and
recreational facilities, quality healthcare and first-rate educational
institutions. |
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D. |
Abundant Resources |
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An archipelago like the Philippines offers diverse natural
resources, from land to marine to mineral resources. It is also the
biggest copper producer in Southeast Asia and among the top ten producer
of gold in the world. It is also home to 2,145 fish species, four
times more than those found in the Bahamas. The 7,100 islands boast
of beautiful beaches and breathtaking sceneries that offer soothing
leisure and relaxation spots for vacationers and tourists. |
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E. |
Low Cost Doing Business |
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Wages are typically less than a fifth of that in the
U.S. Local communication, electricity and housing costs are also 50%
lower compared to the U.S. rates. Foreign companies that are now outsourcing
programming and business processes to the Philippines estimate 30
to 40% business cost savings, 15 to 30% call center services and application
systems and 35 to 50% software development. |
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F. |
Business-Friendly Policies |
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The Philippine government has redefined its role through
privatization that allowed private sector participation in developing
infrastructure and services in the country. It is adopting the innovative
Build-Operate-Transfer scheme, a model now being followed by other
countries due to its success.
The country has opened up its economy by allowing 100% foreign ownership
in almost all sectors of the economy. It has strengthened its capital
markets and deregulated the banking, insurance, as well as the shipping
and telecommunication sectors, removing most, if not all, the monopoly
structures in the Philippine market economy.
Attractive incentive packages are available to qualified enterprises
in the country's numerous Special Economic Zones and Industrial Estates.
The Special Economic Zone's are being nurtured to become balanced
agricultural, industrial, commercial and recreational hubs of activity.
Corporate income tax has been reduced to 32% from 34% in 1998, with
companies located in economic zones/export zones subject to only a
5% overall tax rate. |
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G. |
Unlimited Business Opportunity |
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As ASEAN economies integrate within the framework of
the ASEAN Free Trade Agreement (AFTA), the Philippines is the natural
and most strategic location for firms that want access to the large
ASEAN market and its vast trade opportunities. It has complied with
WTO, APEC, and AFTA agreements and has reduced tariff rates on manufactured
goods. The Philippines has enhanced and primed up various areas of
business for investors and offers a dynamic consumer market accustomed
to array of product choices created by a competitive domestic economy. |
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H. |
All you need and More |
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The Philippines offers state-of-the-art telecommunications
facilities, adequate and uninterrupted power supply. There are ready-to-occupy
offices and production facilities, computer security and building
monitoring systems, as well as complete office services in specialized
IT zones. With the government's focus on building up an IT-enabled
economy, the Philippines is on its way to becoming the E-services
Hub of Asia. |
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