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SURF THE AEC

The Philippines is ASEAN’s second biggest consumer
market after Indonesia. With more than 100 million

inhabitants, it is the only member of ASEAN-5 that enjoys
a constant and swift economic growth of more than 6%
per year. Thanks to the upward trend in IT (BPO) industry,
which is now catching up with India and generates higher
purchasing power among its population.

Need to Know

3. Construction Materials and Furniture: There
is an opportunity for Thailand to enter this market
thanks to the Philippines government’s USD 180
billion infrastructure megaproject “Build Build Build”
and the growing urbanization that follows the upturn
of IT (BPO) sector.
4. Spa, Cosmetics and Beauty Products: Since
the active middle class enjoys higher income level,
the market expands accordingly. The market
penetration should target secondary cities,
especially those on Southern islands such as Cebu
and other cities where BPO with high purchasing
power is present and Thai products are not
widespread. It is worth noting that although the
cosmetics from Thailand rank first in the Filipino
market and are known for its good quality, most of
them belong to international brands with Thailand-
based factories. Therefore, there are plenty of
opportunities for real Thai brands to make its
presence known in the market since beauty care
is one of the Filipinos’ top concerns.
5. Thai Restaurants: Thai cuisine is currently
a leading trend in this island nation since tourism
industry is being heavily promoted, and young
people of the new generation have higher
purchasing power. New, exotic, and different food
is thus becoming more popular. Additionally, having
a Thai restaurant is also one of the necessary
conditions that a hotel should have in order to fulfill
the 5-star standard.
Investment Opportunity
In the past year, the Philippines government
focused on attracting overseas investors through
the campaign “Invest in Philippines” with the
objectives of promoting the country’s positive
image and stimulating the national development
from the inside by means of foreign investment.
President Duterte’s executive policy “Dutertenomics”
aims at bringing about, within the period of 6 years,
10 aspects of change. The two most outstanding
ones are the infrastructure megaproject “Build Build
Build” worth USD 180 billion and the urbanization
that has grown in proportion with the prospering
nature of IT (BPO) industry. A special emphasis is
put on the construction of economic corridors that
connect Manila to other regions and the
development of Davao city on Mindanao Island,
which is the president’s birthplace and the least
developed of all Philippines islands in the recent
years. This is an investment opportunity for
construction, construction materials and furniture
businesses as well as other related services.

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