What are the top industries to invest in the Philippines?
- Real Estate Industry
- Retail Industry
- Manufacturing Industry
- BPO and Business Services Industry
- Construction Industry
- Energy Industry
If you’re an investor, you might find yourself wondering about the top industries to invest in the Philippines. Understandably, odds and uncertainties remain as the Philippine economy continues to battle with the recession and economic fallback brought by the pandemic.
As positive developments emerged along with the development of the COVID-19 vaccine, there’s a positive outlook for the Philippine economy. In a report by Fitch Solutions and the Asean+3 Macroeconomic Research Office (AMRO), the Philippine economy is forecasted to grow over 7% in 2021.
The Philippines remains one of the top countries to invest in for several markets because it is primed by key factors such as a skilled workforce, remittances, technological proficiency, dynamism, favorable tax environment, strong private consumption, and innovation. However, investors should consider focusing on the industries that show promising development. Continue reading on to learn more about the top industries to invest in the Philippines that are expected to grow.
Real Estate Industry
Real estate remains a flourishing industry in the Philippines and it remains one of the best investment choices this 2021. According to statistics, the real estate industry is among those that receive a huge share of annual foreign direct investments. This is a clear indicator that investors see the potential growth in Philippine real estate.
For good reason, the government’s Build, Build, Build (BBB) project continues to accelerate infrastructure building. Another factor to consider is the creation of better infrastructures that make transportation faster. Today, locations in the country are more accessible than ever. The COVID-19 pandemic also made the real estate industry focus on catering to the specific needs of investors and buyers.
Of course, the real estate industry encompasses a wide array of property types including residential, commercial, and even industrial parks in the Philippines. As the demand for specialized zones conducive to industrial development increases, the business investment continues to flow in the top industrial parks in the country as well. These properties can play a pivotal role in posing opportunities for even ordinary investors to participate in real estate.
According to reports, the retail industry is expected to have a soft recovery this year amidst the COVID-19 related problems that still hound the country. As the Philippines gradually reopens the economy, consumer spending and confidence will return.
Out of all the retail products being sold, food, personal care, home, electronic, and health products are expected to have the biggest investment growth. In addition, the retail industry will be propelled further by e-commerce shopping trends. Given the pandemic situation, most consumers relied on the convenience of online shopping.
For investors, any retail good sold to consumers from the light industry remains to be a smart investment choice.
The manufacturing industry usually receives the biggest foreign direct investment among all sectors as this is where investors see the most growth potential. And while the pandemic had an impact on this sector, the Department of Trade and Industry (DTI) continues to expect a sustained level of investments amounting to P1.1 trillion or over $20 billion in 2021.
The manufacturing is showing signs of recovery. The electronics exports have climbed up at 6.3%, while auto production when from 0 to 7,000 units starting from September last year. Now is the time for investors to take advantage of the growth being experienced in the Philippine manufacturing sector as it is expected to grow more strongly and exponentially in the near future.
BPO and Business Services Industry
During the last decade, the BPO and Business Services industry was among the key economic contributors in the Philippines. And while it is true that the pandemic has hit the industry during the early part of 2020, 2021 is predicted to be a rebound year for the BPO and Business Services industry. This optimistic outlook is due to the sound working environment conducive to the new normal. Schedules are made flexible, protective equipment is made available, and improved health protocols are observed in the workplace. In addition, internet connectivity improvements are adding up to the country’s digital competitiveness.
In relation to the real estate sector, the construction industry is also a promising investment choice in the Philippines. Before the pandemic, the Philippine construction industry had been the fastest growing in the Asia-Pacific region. According to analytics, it is expected to bounce back at 8.3% from 2021 to 2024. Once again, this is due to the government’s Build, Build, Build (BBB) project pushing through despite the pandemic. There is a huge budget allocated for the completion of the BBB and it is expected to create more jobs and garners more investments.
The energy industry involves all sectors involved in the production and sale of energy, including fuel extraction, manufacturing, refining, and distribution. It is very extensive and includes most heavy industries. Old energy industries such as coal and oil are part of the heavy industry, while innovative new energy industries such as solar panel manufacturing are part of the light industry.
Back in 2017, the Philippines was recognized as the leading country in developing Asian countries in Asia when it comes to solar energy adoption and usage.
The Philippines is poised to meet the increasing energy demand and lighten pressure on the national grid. Therefore, excellent investment opportunities are present in the renewable energy and natural gas sectors.
Solar energy continues to be a cheap alternative compared to usual energy sources. As a result, the investment value for the energy industry will continue to increase.
The top industries to invest in the Philippines holds great value, despite being struck by the global pandemic. If you’re interested in investing in the Philippines, these are some of the industries that you can focus on as they are forecasted to thrive better than others.
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