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Business Business Profile The Philippine economy is divided roughly into agriculture (contributing 20% of GDP), industry (32%) and services (48%). However, the country’s major export is undoubtedly people – the maids, musicians and other guest workers that throng Asia’s service sector, as well as far more highly qualified professionals noted for their adaptability and English skills. The national unemployment rate of 13.9% takes no account of the large numbers underemployed or on bare subsistence incomes – around 32% of the population live below the poverty line. As of April 2002, Metro Manila has an unemployment rate of 20.3%, the highest in the country. This is largely due to unemployed jobseekers flooding into the capital from the provinces. Despite this and recurrent political problems, growth has been healthy lately, averaging 3.4% in 2001. Philippine manufacturing is highly concentrated in or near metropolitan Manila, with area firms employing more than 50% of the country’s manufacturing industry workers. This is due to a number of factors, including: Manila’s role as the principal port of entry for imported raw materials and other goods; the city’s excellent harbour, which is deep and sheltered; the existence of a large local market; a pool of skilled labour; and the presence of the nation’s major financial, governmental and cultural institutions. Manufactures include textiles, clothing and electronic goods – the latter two are the nation’s leading exports. Watches, iron and steel, food and beverages, cigars and cigarettes, leather goods and shoes are also manufactured here. Additionally, local entrepreneurs – often with foreign financial partners – continue to process primary commodities for export, including plywood, refined sugar, copra and coconut oil. Top companies include Ayala Corp and Ayala Land, as well as Meralco and SM Prime. The main business and financial district is Makati City, also the main embassy district. The Philippine Stock Exchange has active trading floors here and in Pasig City. Manila has stepped forward into the ‘new economy’ with numerous software businesses that use the Philippines’ cheap, highly educated English-speaking workforce to handle outsourcing tasks for the world’s computerised operations. Call centres and other remote service businesses also utilise the same human capital and this is one of the Philippines’ brightest prospects for lifting itself out of Asia’s lower-middle development league. The local mobile-phone company, SMART, is another testament to the growing importance of technology in Manila, while the Jollibee fast-food franchise shows that the Philippines is not incapable of launching an international brand. Business Etiquette Business in Manila is not the formal affair typical further north, although the influential Chinese community brings some stricter East Asian norms. Business style is American and American English is commonly spoken in business circles. Business contacts are best made through connections rather than by cold calling. Diplomacy is preferred to confrontation in business. Handshakes and the exchange of business cards are the usual greeting. Manila’s heat also means a more relaxed approach to business dress, although a shirt and tie is always advised for formal meetings. Hospitality for clients typically includes drinks and golfing. Gifts can be selected to appeal to educated Filipinos’ love of things Western and wrapped in red or green for good luck. Filipinos are not scrupulously punctual and delays may occur. Prior appointments are necessary, however. The best months for business visits are October to November and January to May – business visits around Christmas and Easter are not recommended, as delays tend to be unavoidable. Office hours are usually 0800-1200 and 1300-1700 Monday to Friday, although some company offices are also open 0800-1200 Saturday. |
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