Philippines Fact Sheet

  • PhilippinesPhilippines

About

With a sizable young population and a growing middle class, the Philippines' economic dynamism is supported by a strong labour market and large remittances from overseas Filipino workers – the latter posting a record US$33.5 billion in 2019. While it continued to lag behind regional peers in FDI inflow levels, the country offers advantages such as an English-speaking and well-skilled workforce, along with historically strong bilateral relations with the United States. In the latest Doing Business 2020 Report, the Philippines jumped 29 spots, ranking 95th from 124th the year before. 

106.6 mil

106.6 mil

Population size

24.1 years

24.1 years

Median age

Manila

Manila

Capital

Philippine peso (PHP)

Philippine peso (PHP)

Currency unit

55.5%

55.5%

Internet penetration rate

111%

111%

Mobile penetration rate

Economy


US$3,104

2020 estimated
GDP per capita

0.6% | 7.6%

Real GDP growth projection

(Annual per cent change, 
2020 & 2021)


BBB+

S&P global ratings

Labour


45.05 mil

Total labour force (2019)


98.18%

Literacy rate (2018)

US$7.90

Average daily wage for
manufacturing employee
(2016)

Key Sectors

  • Agriculture, fishery and forestry
  • Energy
  • Environment/Climate change-related projects
  • Healthcare and medical services
  • Inclusive Business (IB) models
  • Infrastructure and logistics
  • Innovation drivers
  • Manufacturing
  • Mass housing
  • Strategic services

Tax Profile


30%

Corporate tax


43

Number of DTAs


5-25%

Dividend withholding tax


10-20%

Interest withholding tax


6%

Capital gains tax


Regulated

FX control

Trade

Exports
US$71 bil
Imports
US$112 bil
  1. China
  2. United States
  3. Japan
  4. Hong Kong
  5. Singapore
  1. China
  2. Japan
  3. South Korea
  4. United States
  5. Thailand


Based on 2019 data

Others

Economic zones

Economic zones

Show moreShow less
Government agencies and business chambers

Government agencies and business chambers

Show moreShow less
Key government initiatives and incentives

Key government initiatives and incentives

Show moreShow less
  • 74 Manufacturing Economic Zones
  • 262 Information Technology Parks/Centres
  • 22 Agro-Industrial Economic Zones
  • 19 Tourism Economic Zones
  • 2 Medical Tourism Parks/Centres

1987 Omnibus Investments Code

  • Foreign companies with less than 40 per cent foreign ownership, that invest in promoted activities listed in the Investment Project Plan (IPP) list.
  • Income tax holiday for six years for pioneer firms and four years for non-pioneer firms.

 

The Special Economic Zone Act (1995)

  • Company operating within an economic zone, and is registered with the Philippines Economic Zone Authority (PEZA).
  • Preferential rate of 5 per cent of gross income after the first four to six years.

 

 

Sources: UOB Global Economics & Markets Research, World Economic Outlook (October 2019 and April 2020), World Bank, UNESCO Institute of Statistics, CIA's The World Factbook, The Philippine Board of Investments (BOI), Phislippine Economic Zone Authority (PEZA)

This fact sheet is given on a general basis without obligation and is strictly for information only. Nothing in this fact sheet constitutes accounting, legal, regulatory, tax or other advice. This fact sheet is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this fact sheet, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the information in this fact sheet.

Find out how we can help your business expand across ASEAN

Get in touch