Philippines Construction and Infrastructure Market and Growth Opportunities

The Philippines Construction and Infrastructure Market and Growth Opportunities have ample growth potential. Despite the current slowdown, the sector will continue to register a strong recovery until 2022 and be the region’s outperformer. While near-term downside risks arise from rising material prices and potential reform delays arising from the change in administration, the sector should continue to record robust growth over the medium and long term. Infrastructure deficits are prevalent in all subsectors and rising investor interest has expanded the pipeline of projects.

Government’s “Build, Build

The Philippine Government’s “Build, Build” infrastructure program is part of President Rodrigo Duterte’s Socio-Economic Agenda. With its broader economic focus and increased spending on infrastructure, this program is expected to create millions of jobs and spur growth. However, it will likely face some labour setbacks along the way. It will require massive loan issuance, despite the country’s low unemployment rate.

Build” program

The government’s “Build, Build, and Grow” program has spurred investment in the country’s construction and infrastructure markets. It has secured a significant amount of foreign direct investment (ODA) for infrastructure projects, but the country needs additional investment in high-tech industries to accelerate its progress. Currently, the government is seeking investors to invest in its golden age infrastructure plan, which aims to keep the country’s inflation rate between three and four percent.

Government’s “AmBisyon Natin 2040” programme

Investing in the Philippines’ construction and infrastructure market offers a range of benefits, including improved Philippines infrastructure, increased foreign direct investment, and a growing population. Despite the country’s weak economic performance, the construction industry has the potential to grow by 7.6% a year in the next five years, and is expected to surpass its pre-Pandemic value by 2023. The government’s “AmBisyon Natin 2040” programme will provide a number of new opportunities for investors and construction firms alike.

Local agents and distributors are important conduits for entry into the market

Using local agents and distributors in the Philippines is important for entering the market and improving your success. There are two types of importers: indenters and stocking distributors. The former are bound by a contract with a foreign supplier, while indenters act as a middleman between foreign suppliers and end users. Distributors can save their company capital on expensive equipment and avoid keeping inventory of high-priced products. Additionally, they can also save on financing costs by keeping inventories for major customers. Indenters must register with the Philippine Securities and Exchange Commission (PSEC) and Department of Trade and Industry (DTI) before they can conduct business.

Australian engineering consultants and contractors are becoming more prevalent

With a growing number of property developers building Megacities and Townships outside Metro Manila, Australia is poised to benefit from the growing trend of green building technologies. As the Philippines focuses on enhancing its tourism potential, Australia is well-positioned to take advantage of the growing demand for accommodation facilities and supply technology to hotels. Australian companies have long been recognized as world-class project developers and financial advisers.

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