An investment haven in the Philippines

CEBU…
An investment haven in the Philippines
Cebu Investment and Economic Summit
Marriott Hotel, Cebu City
1 August 2012
By: Dir. Buenaventura C. Go-Soco
National Economic and Development Authority
 Overview on regional economy
 What CEBU can offer
 Investment opportunities in
fast-growing sectors
 Government initiatives
Central Visayas has one of the fastest
growing economies
12.5
fastest in 2010
7.9 second fastest in 2011
Growth driven by industry and services
INDUSTRY
2009-2010
2010-2011
0.9
5.0
a. Agriculture and Fishery
1.0
6.3
b. Fishing
0.6
(1.0)
22.1
11.1
a. Mining and Quarrying
30.8
13.8
b. Manufacturing
28.2
7.6
c. Construction
10.6
21.5
d. Electricity, Gas and Water Supply
9.2
4.6
8.8
6.4
a. Transport, Storage & Communication
2.6
6.1
b. Trade and Repair of Motor Vehicles
9.8
4.6
c. Financial Intermediation
14.0
2.9
d. Real Estate, Renting & Business Activities
10.2
10.9
e. Public Administration & Defense; Compulsory Social Security
7.2
(0.7)
f. Other Services
8.1
8.5
12.5
7.9
AGRI, HUNTING, FORESTRY & FISHING
INDUSTRY SECTOR
SERVICE SECTOR
GROSS REGIONAL DOMESTIC PRODUCT
Growth driven by industry and services
GRDP at Constant 2000 Prices: In Million Pesos
INDUSTRY
AGRI, HUNTING, FORESTRY & FISHING
2009
2010
2011
27,013
27,266
28,628
22.061
22,283
23,695
4,952
4,983
4,933
98,302
120,029
133,348
2,204
2,882
3,279
b. Manufacturing
62,200
79,749
85,785
c. Construction
27,700
30,631
37,206
6,197
6,767
7,079
176,568
192,182
204,404
a. Transport, Storage & Communication
24,645
25,289
26,829
b. Trade and Repair of Motor Vehicles
48,199
52,901
55,347
c. Financial Intermediation
20,958
23,902
24,591
d. Real Estate, Renting & Business Activities
34,121
37,587
41,685
e. Public Administration & Defense;
Compulsory Social Security
10,113
10,842
10,770
f. Other Services
38,533
41,660
45,182
301,883
339,477
366,380
a. Agriculture and Fishery
b. Fishing
INDUSTRY SECTOR
a. Mining and Quarrying
d. Electricity, Gas and Water Supply
SERVICE SECTOR
GROSS REGIONAL DOMESTIC PRODUCT
Cebu offers …
3-4 hrs to/ from
Incheon & Pusan,
S. Korea
2 hrs. to/from
Hong Kong
4 hrs. to/ from
Narita, Japan
2-3 hrs to/ from
Taipei, Taiwan
2hrs. to/from
Singapore
Papua New Guinea
approximity to major markets in Asia
Cebu offers …
relatively lower cost of living than Metro Manila
 Minimum wage lower by 46%
 Food in supermarket and restaurants 20% to 50%
less expensive
 Rental cost of condominiums and executive houses
is 20% to 50 % lower
 Cost of real estate is up to 4 times lower

Cost of power is about 20% lower
Source: Cebu Investment Promotion Center
Cebu offers …
cosmopolitan living and world-class amenities
medical facilities
financial institutions
educational facilities
convention centers
Cebu offers …
leisure and entertainment facilities
entertainment centers
hotels & casinos
resorts
sports facilities
Cebu offers …
ready and available industrial & tourism areas
Polambato-Bogo Ecozone
(41.71 hectares)
West Cebu Industrial Park
(160.86 hectares)
Mira Nila Ecozone
(25.3 hectares)
New Cebu Township One
(122.83 hectares)
Mitsumi Realty, Inc. Ecozone
(28.29 hectares)
Mactan Economic Zones I & II
(182.67 hectares)
Phil BXT Corp. Tourism Economic Zone
(7.5 hectares)
Cebu Light Industrial Park
62.5 hectares
Cebu South Road Properties
(295.69 hectares)
21 Operating IT Parks/ Centers
11 IT Parks/ Centers being developed
Cebu offers …
ready and available industrial & tourism areas
Tourism Estates




Argao Beach Property (8.78 hectares)
Dalaguete Public Beach (2.2243 hectares)
Kang-Irag Golf Course (94.55 hectares)
Moalboal Properties ( 71.65 hectares; 20 hectares of which are developed)
Other areas with potential for tourism development







Malapascua island
San Remegio
Bantayan island
Camotes island
Oslob
Toledo City
Balamban
Cebu offers …
other comparative advantages
 Cebu is the most accessible place in the Philippines
with more domestic air and sea linkages than Manila
 Cebu has vibrant and self-sufficient economy largely
immune to political upheavals in Manila and
neighbouring areas
Fast-growing sectors…
1,596T
1,618T
1,768T
Visitor arrivals growing at an
average of 6.5 % since 2009
TOURISM
Fast-growing sectors…
IT and IT-Enabled Services/ BPO
Cebu's Outsourcing Revenues
1400
Revenues (in US$ millions)
1200
1000
800
600
400
200
0
2005
2006
2007
2008
2009
2010
2011
Fast-growing sectors…
Real Estate/ Property Development
 OFW remittances grew by 7.2 per cent in 2011 (US$ 20.117
billion) and 5.4 per cent in first quarter of 2012 (US$4.842 billion)
 Thirty to forty per cent of remittances are invested in real
estate properties
Fast-growing sectors…
Retail Trade
Consumer base with high purchasing power is expanding because of …
Growing outsourcing industry
 Influx of domestic & foreign tourists
 Continuous inflow of remittances

Investment opportunities
Tourism
 Cebu as “second home destination”
 Adventure and sports tourism
 Medical & wellness tourism
 Ecotourism including arts & culture/ heritage tourism
IT and IT-enabled Services/ BPO
 Non-voice and KPO services
Investment opportunities
Real Estate/ Property Development
 Residential
 Commercial complex
 Tourism-related property development
 Office spaces
Retail trade
 Retail outlets
 Hypermart
 Supermarkets
Investment opportunities
Manufacturing




Shipbuilding
Agri-processing
Light engineering and metal working
Other design-oriented manufacturing
Creative, design-driven services
 Architecture
 Graphics design
 Filmmaking
Investment opportunities
Entertainment, leisure and recreation facilities
 Amusement/ theme parks
Others
 Convention and exhibition facilities
 Infrastructure and services in support to tourism
 Educational institutions and training centers
 Medical facilities for areas outside Metro Cebu
 Waste management facilities
 Power generation facilities preferably renewable energy
Government Initiatives
Aggressive promotion of Cebu as
Meetings, Conferences, Exhibitions (MICE)
destination and festival island
Government Initiatives
Improving rural communities through the
rural tourism program dubbed as
Suroy-Suroy Sugbu
Government Initiatives
Dancing Inmates Program
Government Initiatives
Obra Negosyo Eskwela
Government Initiatives
Bulk Water Supply Project
Bus Rapid
Transit
Bus Rapid
Transit
MCIA
Passenger
Terminal
Cost:
Php 8.2 B
MCIA Passenger
Terminal
Cost: Php 5.85 B
Other Government Initiatives
 Cebu City fund assistance for call center training
 Expanded Greening of Wholesome Environment
that Nurtures (E-GWEN)
THANK YOU