The Philippines ranked 9th among key emerging markets for global investors in 2009, jumping 14 spots from 23rd place the previous year, according to new research published by UK Trade & Investment.

Addressing the Economist Intelligence Unit's Emerging Markets Summit this morning, UK Secretary of State Lord Mandelson revealed the findings of a new report, which examines global business attitudes to emerging markets in light of the global downturn.

"The report we're publishing today has a few basic messages. First, the basic conditions in the emerging economies are varied and not universal. China and India have continued to grow rapidly, although at less than the trend rate of the last decade. Other parts of the emerging world are also performing well relative to the rich world, but well below recent trend," Lord Mandelson said.

"On a more positive point, most of the 500 plus companies surveyed by the report are cautious about quick recovery but they were very positive about the long term potential of the emerging economies," he added.

The survey found that 77% of companies expect the prospects for the global economy to improve in 2010-11. 60% percent of companies surveyed expected to derive more than 20% of their total revenues from emerging markets in five years' time - almost double the current figure of 31%.

However, political risk, including the risk of nationalisation and expropriation, was cited by 50% of survey respondents as the greatest government-related obstacle to doing business in emerging markets.

In the Philippines, local and foreign chambers highlighted the need for continued reforms despite significant progress. The chambers jointly submitted to government a list of ten pieces of legislation, which they believe will have significant positive effects on the Philippines investment climate.

Despite the economic downturn, emerging markets support global profitability. Emerging market economies, on the back of the continued high growth and market size of China and India, have outperformed those of developed countries in 2009.

Commenting on the research Lord Mandelson said, "It's clear that many British businesses have been able to hedge their recession performance thanks to a strong presence in the emerging economies. And they do see a long game in which WTO-membership and improving legal and commercial environments will make it easier to do business there.  Certainly, growing and increasingly prosperous populations make these markets a huge potential source of growth and jobs."

British Ambassador Stephen Lillie added, "The global recession was a wake-up call for companies to diversify their export base and seek out new opportunities in the emerging world. We are encouraging UK business to look to the Philippines and find new business in this exciting new market."

The United Kingdom is the top net Foreign Direct Investment (FDI) investor in the Philippines, investing US$298.17 million last year. There are currently around 200 British companies active in the Philippines, ranging from big multi-national to small and medium enterprises (SMEs).

President Gloria Macapagal-Arroyo delivered a keynote message during the Emerging Markets Summit. Over 300 business leaders and investors from all over the world participated in the forum, giving Pres. Arroyo the opportunity to share the Philippines' view on Asia's leadership in the global economic recovery and to promote the Philippines as an investment destination.

Pres. Arroyo highlighted the resiliency and continued growth of the Philippine economy, which posted a 1.5% economic growth in the second quarter of 2009.

President Arroyo also said the UK has "generously" offered its assistance and support to the ongoing peace efforts in Mindanao, including sharing its own experience in securing peace in Northern Ireland.

Notes for Editors

• 45 per cent of respondents cited China as their favoured future investment destination, 43 per cent cited India and 35 per cent cited other Asian destinations. The Middle East and North Africa (MENA) was in 4th place (32 per cent), ahead of Central and Eastern Europe (30 per cent), Russia (28 per cent), Brazil (28 per cent) and other Latin America (25 per cent).
• Beyond the BRIC's - the next wave of priority markets:  Which of the following emerging market countries are you considering entering over the next five years? Compares 2008 and 2009 rankings. Half of the top 10 are in Asia.

         2009 rank  (2008)       Country
             1 (1)      Vietnam
             2 (3)      United Arab Emirates  
             3 (2)      Mexico
             4 (8)      South Africa  
             5 (13)    Malaysia      
             6 (5)      Indonesia      
             7 (6)      Singapore      
             8 (12)    Turkey
             9 (23)    Philippines    
             10 (10)  Saudi Arabia  
             15. (4)   Ukraine
             15. (7)   Poland

• UK Trade & Investment (UKTI) is the government organisation that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK's economy - acknowledged as Europe's best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage.
• The fiscal stimulus initiative is part of UKTI's response to the global economic downturn.  It aims to help UK companies take advantage of new opportunities stemming from overseas fiscal spending plans. The size and scale of initiatives means there are plenty of opportunities for UK business to provide expertise and capability. UKTI has a team of dedicated business specialists who can help British companies to identify and seize these new opportunities.
• Survive and prosper: emerging markets in the global recession is a UK Trade & Investment (UKTI) report written in collaboration with the Economist Intelligence Unit. The report seeks to examine opportunities within emerging markets in the context of the current economic climate. It follows a previous report by UKTI, Tomorrow's Markets, also written in conjunction with the Economist Intelligence Unit, published in September 2008. In July-August the Economist Intelligence Unit conducted a global survey of over 540 companies from across 19 business sectors. Over 40 per cent of the executives interviewed worked for companies headquartered in emerging markets; the remainder were from companies based in developed countries.

Back to newsroom

Back to top