MB, MANILA, Philippines — Two factors – skilled workforce and competitive labor cost – account for investors’ choice of the Philippines as an ideal investment site. Many foreign companies reportedly prefer Filipino workers because they are easily trained, industrious, computer literate, English-speaking, and willing to work longer hours and at cheaper labor cost. We have the best workforce in the world,” the Philippine Economic Zone Authority (PEZA) declares, citing the aforecited traits as to why the Philippines continues to attract foreign investors.
Every year, the Philippines sees an increased number of companies setting up operations in the country. The biggest number of foreign direct investments (FDI) in the Philippines has been in the call center and/or business process outsourcing (BPO) sector. Special incentives are given for companies in the BPO sector that are setting up branches in the Philippines.
PEZA grants investors that are locating their BPO or call center operation within a PEZA zone or building a number of incentives, including reduced taxes (e.g., on the importation of information technology equipment). Companies file for incentives by the Board of Investments (BoI) wherever they may be located.
In the first five months of 2011, FDIs reportedly rose by 189 percent to R300 billion and this is attributed to renewed investor confidence. Republic Act 7042, the Foreign Investments Act of 1991, is the basic law that governs foreign investments in the Philippines.
The Philippines is regarded as a good investment location because of the many advantages it offers to local and foreign investors, including strategic location, skilled professionals and workers, improved infrastructure, liberal economic policies, and growing market.