BUSINESS UNUSUAL

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BUSINESS UNUSUAL

• ATTRACTIVE BUSINESS OPPORTUNITIES IN THE
  PHILIPPINES
  

Kenneth Duncan De La Salle University, Philippine
s
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Strategic Location

• Readily accessible from travel capitals of the
  world
  
• Favorably located in relation to many water
  bodies South China Sea, Sulu Sea, Celebes Sea
  and Luzon Strait
  
• Immediate reach to Chinas port cities and East
  Asian cities
  
• The Philippines' centralized location makes it
  possible for cargo aircraft to reach all major
  Asian cities in less than four hours.
  
• the lowest port tariffs in the Asia-Pacific
  region
  

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UPSs Intra-Asia Hub

• Since its establishment in 2002, UPS's intra-Asia
  hub, based in the Philippines has grown into the
  largest air hub in the Asia Pacific region.
  
• Since its establishment in 2002, UPS's intra-Asia
  hub, based in the Philippines has grown into the
  largest air hub in the Asia Pacific region.
  
• UPS president David Abney The strong growth of
  Philippine operations is a clear indication of
  its importance to businesses worldwide and in the
  region

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Lexmarks RD hub

• The Philippines has Accidental Geography -
  centrally located and easy to access from all
  areas in the Asia-Pacific region - Stan Combs,
  Lexmark Research and Development Corporation
  (LRDC) President and CEO

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Gateway to China and Southeast Asia

• History as stepping stone to China for colonial
  powers
  
• Proximity to Chinese cities
• Taiwan to benefit with Philippine cooperation
  under ASEAN Free Trade Agreement (AFTA)
  Framework
  
• Test market in Southeast Asia due to similarities
  in culture and consumer behavior
  

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Education Hub

• Highest English literacy rate in Asia at 93.5
• Strategic location for Koreans, Japanese and
  Chinese students to learn English
  
• Affordable but quality education
• Low Cost of Living
• Tens of thousands of Korean students studying in
  the Philippines
  
• Gateway to western countries for continuing
  education
  

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Opportunities

• Partnership with Western nursing schools
• Tutorial centers
• Language centers
• Education agencies
• Condominiums
• Entertainment schools

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Opportunities

• Tutorial centers
• Language Centers
• Education recruitment agencies
• Dormitories and
• Nursing Schools

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Retirement in the Philippines

• Quality lifestyle for as little as 300-700 a
  month
  
• Availability of household help and security
  guards
  
• Tropical locations abundant
• Friendly hospitable people
• Buying power of pension

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Note

• American retirees can own a house or building as
  long as they dont own the land where it sits.
  That suits a retirement in the Philippines in a
  condo unit well.
• Retirement in the Philippines has one of the best
  options for foreign retirees who want value for
  their retirement money.
  
• Retirement in the Philippines equates to a
  luxurious lifestyle in a tropical paradise
  

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Opportunities

• Development of Residential Complexes near
  beaches
  
• Consultation Services
• Money traders
• Investment Agencies
• Real Estate agencies
• Resort Owners

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Mining

• Metallic and non-metallic mineral
• resources estimated at about
• 840 billion to 3 trillion
• In fact, The country ranks second in the
  Asia-Pacific region, after Indonesia, in terms of
  mineral prospectively and resources
  
• Only less than 2 of the estimated nine million
  hectares of mineral-rich lands have been
  explored
  

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Opportunities

• The rising demand of China of copper, tin, zinc,
  petroleum, steel and iron ore
  
• Investment in Mining firms

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Alcohol Industry

• Philippine demand for alcoholic beverages is
  among the largest in the world.
  
• In terms of sales, the local brand, Emperador
  brandy is the worlds number one brandy. Ginebra
  San Miguel of San Miguel Corporation is the
  worlds no. 1 gin while Tanduay Rhum is the
  worlds number 2 rum.
• Philippines is the worlds biggest importer of
  Spains Fundador brandy
  
• The wine market has been growing at an average
  annual rate of 8-10.
  

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Opportunities

• Innovative new alcoholic/non-alcoholic beverages
  (i.e. healthy/fruit-based)
  
• Opening new concept open-air pubs
• Target foreigners

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Overseas Filipinos

• Numbers 11 million worldwide
• 4 million strong in the United States
• Typically known to be as doctors, nurses,
  accountants, IT professionals, engineers
  architects
  
• Reported to have contributed up to 17 billion in
  remittances, excluding those from informal
  channels
  

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Filipino-American Community

• Generates over 35 billion in spending power
• Second highest median household income among
  Asians at 65,700
  
• Educational Attainment highest in High School
  graduation rate and third highest in Bachelors
  degree among all ethnic groups
  
• Biggest sender of remmitances among Overseas
  Filipinos
  

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Opportunities

• Educational and Cultural Tourism
• Retirement
• Professional Childcare and domestic services
• Tutoring for dependent children
• Financial Consulting Services
• Real Estate
• Money Trading
• Entertainment and Cosmetic Industry abroad

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SMEs in the Philippines

• The Philippines is a highly
• entrepreneurial country. The main reason that
  drives its entrepreneur spirit is its prevalent
  poverty
  
• Small and medium-sized enterprises (SME) account
  for the largest share of Philippine entrepreneurs
  and businesses
  
• Women hold significant leadership positions in
  national and local government, universities,
  business corporations and family business
  enterprises in the Philippines. 51 of
  entrepreneurs in Philippines are female

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Opportunities

• Untapped demand for personal computers
• Microfinancing
• Tingi Micromarketing or micro-retail system
  of commerce fits the Filipino lifestyle
  
• This addresses the variety of wants in the
  family. Tingi-can be applied to services and
  other products
  
• Smaller pack sizes to satisfy the growing demand
  for lower-priced goods in towns and villages
  
• Can be applied to other products and services

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Untapped Muslim Market

• 5 of the Philippine population
• Mostly in Southern (Mindanao) area
• Many have migrated to Metro Manila
• Office of Muslim Affairs has identified 19
  predominantly Muslim vicinities within Metro
  Manila
  
• Many involved in trading

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Opportunities

• Most products have not been
• certified as Halal
• Few restaurants offer
• Halal food
• Islamic banking in Metro
• Manila area and other cities

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Conclusion

• The Philippine economy is not as underdeveloped
  as some analysts might suggest
  
• Consumer market is among the worlds largest
  (Coca-cola, Nestle, etc.)
  
• Various opportunities untapped and unnoticed
  exist
  
• Entrepreneurs should maintain optimism on the
  countrys unlimited potential

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Maraming Salamat!