PROMOTION PHILIPPINES the ideal location to invest in 2018

One of the fastest-growing economies in Asia, there are an increasing number of attractive opportunities opening up in what could currently be the best country in Asia to invest in.

“The Philippines is 13th-biggest popu- Having a highly skilled, Eng- Increasingly, the private-sec- a sure bet for inves- lation is “relatively lish-speaking population has tor is investing in new activities, tors,” says Edwin R. young and increas- other positive impacts. Many such as manufacturing in export Bautista, president ingly middle class. move abroad and send earnings processing zones. As in all sec- and CEO of Union- We have the right back home, for example, there tors, investors are encouraged Bank, a major local demographic pro- are over 3.5 million Filipinos in by a stable macro environment, bank. Having expe- file to support the U.S. and in the first half of prudent debt management and rienced remarkable future economic 2017, remittances from overseas attractive tax incentives. growth for over a growth,” says Cesar citizens were $5.4 billion. decade, the tropical G. Romero, presi- As well as importing dollars, Edwin R. Bautista Rising Foreign Investment archipelago in the President and CEO, dent and CEO of these expats introduce those at When the competitive costs of South China Sea, Pilipinas Shell Petro- home to the latest technologies running a business in the Philip- containing nearly leum Corporation from their adopted countries, pines are also considered, it is no 7,500 islands and (PSPC), a subsidiary giving a further boost to knowl- surprise that much of the invest- over 100 million people, saw a of Royal Dutch Shell. edge in the consumer-led, high- ment is international. In 2017, 6.7% year-on-year growth in “Within 30-50 years, over 50% spending Philippines. total foreign direct investment gross domestic product (GDP) of the population will be at a in 2017. productive age,” adds Jaime E. That makes the Philippines Ysmael, president and CEO of one of the top three perform- another important developer, ers in Asia, says the World Bank, Ortigas & Company; “That which predicts that its economy provides opportunity for creat- will continue to expand at about ing jobs, building the middle 6.7% a year until at least 2020. class and keeping the engine The country’s National Eco- revved.”

“We have the right demographic profile to support future economic growth.” Cesar G. Romero, president and CEO, Pilipinas Shell Petroleum Corporation

nomic Development Authority This large and well-edu- expects even more, says Fed- cated talent base explains erico A. Laxa, chairman and why, despite not having a huge CEO of leading property devel- manufacturing sector, the Phil- oper First Shelter Ventures and ippines is an important force in Realty Corporation: “They are services. For example, it is the looking at 7% for the next few global capital for business pro- years, possibly until 2022.” cess outsourcing (BPO), with about 1,000 companies in the Home to a Huge Talent Base country generating $13 billion in A range of factors is driving this 2017 by handling 16-20% of the achievement, not least the Fili- world’s BPO business, according pinos themselves. Expanding to Texan consultants The Ever- at around 2% a year, the world’s est Group.

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inflows reached over $10 bil- inclusivity. RCBC is one, Dee A Constant Pursuit of Excellence lion, 21.4% up on 2016. And, states: “Investment in technol- after being named 2018’s best ogy is indispensable for our For Helen Yuchengco Dee, chairperson of country in the world to invest in continued growth.” The largest the Yuchengco Group of Companies (YGC), by a report from U.S. News, the investor in this area is Union- the secret to success in leading a multi-bil- lion-peso conglomerate is continuing and BAV Group and the University of Bank, one of the country’s big- building upon an already solid foundation Pennsylvania, inflows for August gest banks. that was laid down by her father before her. were $1.6 billion — 142.9% more This year, it became the first in “His lessons of discipline, excellence and than for the same month in 2017. the world to pilot cross-border integrity have constantly served as a guide After sharing a close rela- business-to-business payments for the entire conglomerate,” she explains. It has long been at the forefront of innova- tionship for over 100 years, U.S. using blockchain technology in tion in various sectors, such as finance, edu- companies are at the forefront partnership with Visa, enabling cation, construction and insurance. Mapúa Helen Yuchengco Dee of this investment and bullish funds to be transferred within University and its subsidiaries are some of Chairperson, about the Philippines. Helen Y. 24 hours. It has since adopted the Philippines’ best institutions. Offering Yuchengco Group Dee, chairperson of Rizal Com- the same technology to link courses in IT, engineering and technology, of Companies they have a high standing with local and mercial Banking Corporation rural branches and for internal international accreditation bodies. In infrastructure and construction, (RCBC), one of the country’s processes as part of the bank’s EEI Corporation is a leading global construction service provider that largest universal banks notes: ongoing digital transformation continually pursues partnerships and projects that better the country. “The U.S. is among our top to create inclusive prosperity by Malayan Insurance is one of the top Philippine non-life insurance com- panies, providing a world-class service that is affirmed by its stability rat- trading partners and investors. “penetrating market segments ing from A.M. Best and its rankings from the Philippine’s Insurance Com- Always strong, the partnership not serviced by our peers. If we mission, where it takes the lead in both gross and net premiums written. between us is at an all-time high, succeed, we expect to have 50 Lastly, RCBC, the flagship company of the YGC, continues to expand its ventures through pursuing new innovations for its products and services that constantly modernize the country’s current banking landscape. “The “The U.S. is among our top trading YGC’s pursuit of excellence is one that constantly places nation building and the betterment of our countrymen at the forefront,” Dee concludes. partners and investors. Always strong, the partnership between us is at an www.ygc.com all-time high.” Helen Y. Dee, chairperson, Rizal Commercial Banking Corporation Philequity Sets the Benchmark following President Trump’s visit million individual and 1 mil- Founded in 1994 by three veteran stockbro- in 2017.” lion entrepreneur customers,” kers — Ignacio Gimenez, Roberto Lorayes and Wilson Sy — Philequity Management, International firms are invest- explains Bautista of UnionBank. Inc. (PEMI) boasts an outstanding track ing in various sectors, including So far, UnionBank has record for returns on investment and towers BPO, manufacturing, real estate, invested about $56 million on above its peers as the preeminent invest- energy and transport infrastruc- new technology, will spend ment manager and principal distributor of leading mutual funds in the Philippines. ture, trade and technology. the same again in 2018 and is, With a commitment to helping inves- Looking forward, Roberto “Engaging fintech partners to tors achieve long-term financial goals via an Z. Lorayes, chairman of Phile- embrace future technologies, array of mutual funds suited to their specific quity Management Inc. (PEMI), like robotics, agile thinking and needs, PEMI has been recognized many Roberto Z. Lorayes an experienced and top-per- artificial intelligence,” he adds. times by the Philippine Investment Funds Chairman, Philequity forming equity fund manager, The bank is utilizing these, Association for its excellent returns. Management, Inc. Giving investors access to a diversified advises, “We are a country with and training their staff in their portfolio managed by some of the best fund managers in the country, the thousands of islands, so there use, to deliver best-in-class ser- flagship Philequity Fund, Inc. (PEFI) has garnered multiple awards from is a lot of profit to be made vices and a seamless, omnichan- local and foreign agencies for its consistent track record of eye-catching returns. Taking into consideration PEFI’s talent for managing risk, the in industries like logistics and nel user experience to custom- fund has also earned several accolades for its risk-adjusted performance tourism. Conservative investors ers. It is also exploiting them to in relation to its peers, underlining it as the ideal choice for people who will typically stick to bread-and- innovatively access new mar- wish to invest in the stock market, but lack the time and expertise. butter industries such as banks.” kets. For example, to establish “In the fund management business, it is not the size of the capital of “branch-lites”, a type of outlet the manager but rather the experience, analytical ability, sourcing of data and executions that count,” states PEMI Chairman Roberto Z. Lorayes. Banks Turn to Technology recently approved by the Phil- In that context, Wilson Sy has developed a highly efficient management are indeed ippines’ central bank that per- team blending youth with experience. An added strength is PEMI’s board a major pull for investors and forms limited banking activities that consists of respected names from industry and government. some Philippine banks them- in under-banked areas. Philequity Management, Inc. selves are investing to mod- UnionBank’s transforma- www.philequity.net ernize for a digitally active tion is bringing success. “Our society with only 28% financial customer book has grown

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above the indus- but they will only go try average for the a small way to meet Fueling an Economic Boom last three years and the country’s urgent core net income is requirement for 43 By fueling one in three Filipino vehicles, up 30%, for exam- GW of extra energy refi ning and marketing company Pilipinas Shell Petroleum Corporation (PSPC) is a ple. New technol- by 2040. signifi cant contributor to the Philippine ogy is at the core of To achieve this economy and one of the country’s larg- strengthening our quickly, the govern- est investors. It keeps growing, with 2017 market position,” ment has adopted a earnings up 39% versus 2016, but Presi- states Bautista. technology-neutral dent and CEO Cesar G. Romero is equally Jose Silvestre proud of the jobs PSPC creates: it has M. Natividad, stance and imple- over 700 employees and generates work Build, Build, Build President and CEO, mented investor- for about 25,000 more. “As we expand, CRESPHIL we remain conscious of ways to contrib- Historically, insuffi- friendly policies Cesar G. Romero cient infrastructure and incentives. For ute to the economy,” he says, noting that PSPC is investing heavily: “We have President and CEO has been a handicap for inves- example, new energy projects improved our refinery’s environmental Pilipinas Shell tors. That is set to change, with now only take 30 days to gain standards and are completing a bitumen Petroleum the government’s plan, “Build, approval and an inter-agency production facility. We traditionally invest Corporation Build, Build”, to spend $180 bil- Energy Investment Coordinat- about $20 million a year in retail, but in 2018, we are doubling that.” lion on 75 fl agship infrastructure ing Council has been set up to Listed on the Philippine Stock Exchange, it is 55%-owned by Royal Dutch Shell, which has two other major Philippine investments: Shell schemes. streamline larger projects. Philippines Exploration B.V. and Shell Business Operations Manila. The program is open to These changes are attract- “Shell is bullish and optimistic about the country,” welcoming the global investors, but should ing attention. Evidence of this chance to continue investing in its current sectors and renewable largely be funded by govern- came in June, when four South energy, says Romero. Sustainable development is integral to PSPC and its social arm, PSFI, has helped 12 million people. Through its fl agship ment revenues and official Korean fi rms expressed interest project, Movement Against Malaria, 42 provinces are now malaria-free. development assistance. As of in investing $4.4 billion in coal, It strives to strengthen its industry leadership, provide a world-class May 2018, seven projects were wind, solar and liquid natural opportunity for shareholders and support nation building. already being constructed, while gas plants. There is particular another 23 were in procurement. activity in renewable energy. In Pilipinas Shell Petroleum Corporation www.shell.com.ph “When the ‘Build, Build, January, for example, Solar Phil- Build’ projects go on stream, we ippines Commercial Rooftop can expect another big boost Projects pledged $481 million to the economy,” says Lorayes for three solar power facilities. Investing in Energy’s Future of PEMI, and many predict they Leading local energy com- will contribute an additional pany Global Business Power In April 2018, the Philippines took a major step towards 1-2% to GDP. As well as improv- (GBP) is “strategically bringing developing a sustainable and ing connectivity, productivity renewables into our portfolio,” efficient energy sector when and sustainability, they will help states its president and CEO Global Business Power (GBP) decongest the capital region, Jaime T. Azurin, and Pilipinas inaugurated its GBP Institute Metro Manila, as well as encour- Shell is also looking to invest in for Energy (GIE). The two-sto- rey, 1,863m2 training facility in age investment in other areas of the sector says Romero, who Iloilo City will enable the leading company to enhance energy effi ciency the country. points out that, “Under the by providing a learning and development hub for its employees across Included in the plans are air- country’s renewables legislation, 11 power generation plants in Panay, Mindoro and Cebu. ports, railways, bus rapid-transit projects should be 60%-owned The GIE highlights GBP’s commitment to learning and to supporting the government’s “Build, Build, Build” infrastructure program. It will systems, roads and bridges, by Filipinos.” “help move the country forward through the creation of a robust pool ports, water projects, fl ood con- An ideal partner could be of highly skilled, highly dedicated professionals,” says GBP President trol facilities and urban rede- Clean Renewable Energy Solu- Jaime T. Azurin; “It’s a big investment, but we have to train people how velopment schemes. Four new tions Philippines Inc. (CRE- to run modern plants in the most effi cient way possible.” The institute energy plants are also in the SPHIL), which already has houses a state-of-the-art coal-fi red power-plant simulator with circulat- ing fl uidized bed technology — a cutting-edge clean-coal combustion “Build, Build, Build” program, alliances with U.S., German, method that GBP already uses. It also features training rooms, labora- tories, an audio-visual room and an e-learning classroom. DIGOS SOLAR POWER PLANT Demonstrating the company’s focus on effi ciency and sustainabil- ity, the GIE generates part of its own energy requirements from solar power, which GBP aims to build, along with hydropower and biomass, to complement its existing plants. “For the next fi ve years, our intention is to grow by 60%, organically or through acquisitions,” says Azurin; SIPANGPANG HYDROPOWER PROJECT “With GIE, we can build knowledge and capacity that will secure the future of our company, our employees and the energy sector.”

Global Business Power www.cresphil.com www.gbpc.com.ph

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Chinese and Japanese firms. this, as it opens up new, eco- Building on a Legacy of Quality Its president and CEO Jose Sil- nomically attractive markets vestre M. Natividad explains, outside Metro Manila to devel- According to Jaime Ysmael, president “With over 7,000 islands, 2,000- opers — although the capital and CEO of Ortigas & Co., a pioneer in 3,000 rivers and streams, wind region is still at the heart of the up-market property development, “The and solar sources — renewable sector. luxury real estate sector will keep growing energy is viable.” The residential market is at its current pace.” With about $4 billion of mixed-use schemes in key locations, A with sub- being driven by factors such as Ortigas & Co. has spent more than 87 sidiaries, CRESPHIL owns hydro- the ever-expanding population, years building groundbreaking multi-use power and solar plants, mainly rapid urbanization and a thriv- projects. Now, the country’s two biggest on less-developed islands, and ing middle class that can afford property groups, Ayala Land and SM Prime grows through acquisition and to buy and are facing expensive Holdings, are partnering with Ortigas & Co. to move it forward. “Their best prac- project development. rents, according to Laxa of First Jaime E. Ysmael, tices have been brought in, the business “Our advantage is we do Shelter: “We focus on proper- President and CEO, model is right and 2017 was a good year,” Ortigas & Company everything, from consultancy ties for middle-income buyers notes Ysmael. to feasibility, engineering, con- and there are many financing That year saw Connor, a 55-storey luxury residential development, go on sale. “In ten hours we sold over 51% of struction and operation. If a options for them, including the the units. It was perfect for the location, timing, pricing and unit con- figuration,” he explains; “This year, we launched our first office building for sale. We sold 81% on the first day, generating $120 million for about “When the ‘Build, Build, Build’ projects 288 units. We were floored!” In addition to its sales income, Ortigas & Co. is increasing its recurring income base through a shopping mall go on stream, we can expect another big expansion program. It is extending its Estancia mall and redeveloping its 16-hectare Greenhills complex. “We are accelerating the pace of boost to the economy.” our developments, primarily in Metro Manila for now,” says Ysmael; Roberto Z. Lorayes “Ortigas & Co. has a legacy of quality developments that were ahead Chairman, Philequity Management, Inc. of their time and have stood the test of time. We would like to continue drawing on that legacy of success.” project is too large for us alone, government’s Home Develop- Ortigas & Company we find partners and financing, ment Mutual Fund and local www.ortigas.com.ph as local banks and international banks.” institutions have major funds Ysmael adds that demand for available for renewables,” says properties of the type that his Taking the Middle Ground Natividad of CRESPHIL. company, Ortigas & Co., builds Looking to make more invest- — luxury homes, offices and “Real estate is booming, but most devel- ments, his vision is, “To have shopping centers — is also on opers serve the high-end market, leaving many hydroelectric plants pow- the up as, “People upgrade their the middle behind,” says Federico A. Laxa, ering inclusive development in residencies and the Philippines’ Chairman and CEO of First Shelter Ventures and Realty Corporation, a development communities.” significant consumerism fuels company with “over ten years of experi- GBP’s Azurin confirms that construction of more malls.” ence; “This is where First Shelter comes in. energy facilities ignite economic With an undersupply of about Catering to first-time buyers who can afford activity: “Take Iloilo. We set up 4 million housing units in the $32,500-57,500 because it is cheaper than renting. There is significant demand — our energy generation in the for- country at the moment, and Alsea project sold out in three days.” merly sleepy city and now all the commercial rental rates hitting In Paranaque, 160-unit Alsea is charac- major real estate developers are record highs as vacancies fall, Federico A. Laxa teristic of the company’s approach to plan- Chairman and CEO, there buying land. Progress has the demand for new develop- ning projects to serve customers’ needs. A First Shelter been tremendous.” ments will not be slowing down similar development is Bloomfield, where Ventures and it is building a sold-out second phase and anytime soon. Realty Corporation pre-selling a third. At the higher-end of the Real Estate Flourishing To encourage international company’s offerings is Avilion Gardens, a Reflecting the performance investors to the sector, the gov- mixed development with an average unit price of about $190,000. of the country’s economy as a ernment has introduced a range First Shelter offers innovative, affordable financing options and an unconventional construction method, Laxa adds: “We use cast-in-place whole, the Philippine real estate of initiatives, including relaxing technology, saving on labor and time. We have not had one complaint industry has increased consis- foreign ownership restrictions from a buyer and I attribute that to our technology.” Although Manila tently over the last decade, with on retail and construction. has seen large land-price increases, First Shelter’s business model for revenue from residential sales, As a result, says global prop- middle-income homes is profitable. As well as its larger developments, and recurring revenues from erty consultancy firm Colliers it is also buying land blocks in prime areas for townhouses and will con- tinue acquiring plots for medium-scale projects, potentially with part- shopping malls and offices see- International, opportunities ners. “Our aim is to build 3,000 houses every year,” says Laxa. ing double-digit growth in 2017. abound in the country’s real The construction of energy, estate — as they do in most First Shelter Ventures and Realty Corporation www.fsvrc.com transport and other infrastruc- other sectors of the Philippine ture is having a part to play in economy in 2018. PANORAMA

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