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THE PHILIPPINES REPORT

The American Chamber of Commerce (AmCham) in Singapore


1 Scotts Road #23-03/04/05 Shaw Centre Singapore 228208 AND

Compiled by:

The United States Chamber of Commerce


1615 H St NW Washington DC 20062-2000

Copyright Standards
This document contains proprietary research, copyrighted materials, and literary property of the American Chamber of Commerce in Singapore, the U.S. Chamber of Commerce, and AmCham Philippines. It is for the guidance of your company only, and is not to be copied, quoted, published, or divulged to others outside of your organization without the permission of the American Chamber of Commerce in Singapore, the U.S. Chamber of Commerce, and AmCham Philippines. This document is of great value to the American Chamber of Commerce in Singapore, U.S. Chamber of Commerce, and AmCham Philippines. Accordingly, international and domestic laws and penalties guaranteeing patent, copyright, trademark, and trade secret protection secure the ideas, concepts, and recommendations related within this document. No changes may be made to this document without the permission of the American Chamber of Commerce in Singapore, the U.S. Chamber of Commerce, and AmCham Philippines.

TABLE OF CONTENTS
1. Introduction Research Background & Objectives Survey Methodology Brief Outline of Results 2. Business Outlook Current Business Climate Importance of ASEAN Markets in Global Business Trade and Investment in ASEAN Business Direction and Movement in ASEAN ASEAN Integration ASEAN FTAs Profit Outlook Workforce Expansion Expatriate Satisfaction 3. Factors Impacting Business in the Philippines Local Business Environment Factors Major Strengths Major Concerns Other Local Business Environment Factors International Schools 4. Conclusion Appendices (A) Sample Profile Table A-1: Workforce and Turnover Table A-2: ASEAN Turnover Table A-3: Primary Responsibility (B) Local Factors Impacting Business Table B-1: Satisfaction with Factors Table B-2: Satisfaction with Local Government (C) Expansion in ASEAN over the Next Two Years Table C-1: Top 3 Reasons for ASEAN Expansion Table C-2: Top Reasons for ASEAN Importance over Next Two Years 21 20 4 4 4 5 6 6 6 8 10 11 12 13 13 14 15 15 15 16 16 17 17 18 18

1. INTRODUCTION
Research Background & Objectives The American Chamber of Commerce in Singapore (AmCham Singapore) and the United States Chamber of Commerce, in cooperation with other AmChams in the ASEAN region, conducted a study among U.S. companies based in seven Southeast Asian countries: Cambodia, Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam. This study is now in its 11th year. The purpose of the study is to understand members outlook on business growth in Southeast Asia and their perceptions about a series of local factors. The members surveyed were senior executives, working with a company held by or with an American majority interest. For the first time in 2012, multiple senior executives from each company were surveyed. AmCham Singapore and the U.S. Chamber of Commerce developed a survey design using a web-based instrument. This report presents the feedback received from executives of U.S. companies in THE PHILIPPINES. Survey Methodology Survey Scope: Sample Size: Data Collection Method: Data Collection Period: Senior Executives of U.S. Companies based in the Philippines A list of 238 AmCham members with e-mail contacts was provided by AmCham Philippines. Response rate was about 17% (40) at the end of the data collection period. Web-based, self-administered survey. No enforcement on participation. June 15, 2012 to July 3, 2012

Note: Percentages may not add up to 100% due to respondents choosing I dont know or Not applicable.

Sample Profile (See Appendix A)


Most respondents (63%) are responsible for only the Philippines. The percentage of respondent member companies in the services sector and manufacturing sector are 72% and 12%, respectively. 45% of respondents have a workforce between 50 and 500 employees. The majority of respondents (68%) had a turnover of between $1 million and $50 million in the Philippines in 2012. Turnover in the Philippines accounted for less than 5% of global turnover for 62% of respondents, and between 5% and 25% of ASEAN turnover for 39% of respondents. Other ASEAN countries with significant turnover for the Philippines are Singapore (28%) and Thailand (13%).

BRIEF OUTLINE OF RESULTS


BUSINESS OUTLOOK ASEAN Economic Outlook: 92% of respondents maintain a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies. Current Business Climate: Respondents facing significant financing constraints decreased from 24% in 2011 to 18% in 2012. Most respondents (80%) are not facing higher costs of borrowing in 2012. Importance of ASEAN Markets in Global Business: 63% of respondents report that ASEAN markets have increased in importance to their companies in the past two years. The majority of respondents (58%) expect ASEAN importance to increase in the next two years. Business Direction and Movement in ASEAN: 83% of respondents expect to expand in ASEAN. Profit Outlook: 73% expect a profit increase in 2012. 88% expect a profit increase in 2013. Workforce Expansion: 75% expect a workforce increase in 2012. 30% expect an increase of 20 to 50%. Figure 1: Profit Outlook for 2013 Figure 2: Economic Outlook for Investment Opportunities in ASEAN

Figure 3: Location of Expansion in ASEAN

Major Strength (% Satisfied) Sentiment towards the U.S. (83%) Availability of trained personnel/efficient manpower (78%) Availability of low cost labor (73%)

Major Concerns (% Dissatisfied)

Corruption (73%) Laws and Regulations (43%) Ease of moving products through customs (43%) Infrastructure (40%)

Office lease costs (60%) Personal security (58%) Stable government and political system (53%)

2. BUSINESS OUTLOOK
2.1 Current Business Climate
Table 2.1 Financing Constraints and Costs of Borrowing

2009 2010 Is your company facing significant financing constraints? Yes 39% 10% No 61% 90% Is your company facing higher costs of borrowing? Yes 29% 8% No 71% 92%

2011 24% 76% 24% 74%

2012 18% 83% 20% 80%

In 2012, there are fewer companies facing significant financing constraints (18%) and higher costs of borrowing (20%) than there were in 2011 (both 24%). These figures have fluctuated in the past 4 years without any consistent trends.

2.2 Importance of ASEAN Markets in Global Business


Table 2.2.1 Importance of ASEAN over past two years

2009 2010 2011 2012 Have ASEAN markets become more important or less important, in terms of worldwide revenue, to your company in the past two years? More Important 54% 51% 57% 63% Remained the Same 42% 43% 37% 28% Less Important 4% 4% 0% 8% The majority of respondents (63%) stated that ASEAN markets have become more important to their company in the last two years in terms of worldwide revenue, reaching an all-time high. 8% of respondents believe that ASEAN markets have become less important in the last two years, whereas no respondents felt this way in 2011.
Table 2.2.2 Importance of ASEAN over next two years

2007 2008 2009 2010 2011 2012 Does your company feel that ASEAN markets will be more important, less important, or have the same importance for your companys worldwide revenues in the next two years? More Important 65% 69% 66% 67% 69% 58% Remain the Same 33% 23% 30% 29% 27% 38% Less Important 2% 8% 4% 2% 0% 5% This is the first year that respondents are less positive about the next two years than the last two years. Most respondents (58%) feel that ASEAN markets will be more important for their companys worldwide revenues in the next two years, a significant decrease from previous years. 5% of respondents believe that ASEAN markets will be less important in the next two years, the first increase since 2008.

Table 2.2.3 Reasons why ASEAN markets will be more important in worldwide operations and revenues in the next two years

Economic Recovery Improvement in Infrastructure Increased Availability of Trained Personnel Favorable Government Policies Limited Growth Opportunities in Other Regions Stable Political Conditions Change in Business Strategy Other

2009 89% 53% 38% 13% 49% 11% 30% 2%

2010 88% 44% 24% 24% 59% 12% 24% 12%

2011 76% 48% 24% 24% 52% 24% 27% 21%

2012 0% 0% 4% 4% 22% 9% 44% 17%

*In 2012, respondents were still allowed to choose three reasons, but data was tabulated to add up to 100%.

Changes in business strategy replaced economic recovery as the top reason for believing that ASEAN markets will be more important in the next two years. Respondents cited limited growth opportunities in other regions as the second most important reason for the ASEAN markets growing importance. No respondents cited economic recovery and improvements in infrastructure, which were top reasons in previous years.

2.3 Trade and Investment in ASEAN


Figure 2.3.1 Outlook on ASEAN as an investment opportunity

Thinking about the ASEAN region, what is your outlook for the entire region as an investment opportunity for your company?
Neutral, 3%

Positive, 38% Very Positive, 58%

Figure 2.3.2 Trade and investment in ASEAN over the past two years

Level of trade and investment in the ASEAN region over the past two years:
Decreased, 3%

Remained the Same, 25%

Increased Significantly, 33%

Increased, 40%

The majority of respondents have a positive or very positive outlook on the ASEAN region as an investment opportunity (96%). Over the past two years, 73% of respondents indicated that their company has increased or significantly increased their level of trade and investment in the ASEAN region.

Figure 2.3.3 Trade and investment in ASEAN over the next 5 years

Do you expect your company's activity to increase or decrease in the ASEAN region over the next 5 years?
Remain the Same, 10%

Increase Significantly, 28% Increase, 61%

Table 2.3.1 Trade and investment percentage growth over next 5 years

By about what percentage do you believe trade and investment will grow in the ASEAN region over the next 5 years? Percentage Growth 0-10% 11-20% 21-40% 41-100% Average Percentage Respondents 31% 33% 15% 21% 26%

TOP THREE REASONS WHY YOUR COMPANYS TRADE AND INVESTMENT WILL INCREASE IN THE ASEAN REGION: Increasing Market Share (28%) Availability of Trained Personnel/Efficient Manpower (21%) Stable Government and Political System (18%)
The majority of respondents expect trade and investment in the ASEAN region to increase or increase significantly over the next 5 years (89%). 33% of respondents predicted the growth of trade and investment in ASEAN to be about 11-20% over the next 5 years. The average expected growth is 26%. Respondents indicated that the top reason for their company increasing trade and investment in ASEAN is increasing market share (28%), followed by availability of trained personnel/efficient manpower (21%).

2.4 Business Direction and Movement in ASEAN


Table 2.4.1 Expansion in the Philippines

2012 In The Philippines, does your company plan to expand or contract? Expand Significantly Expand Remain the Same Contract Contract Significantly
Table 2.4.2 Reasons for expansion in The Philippines

25% 58% 18% 0% 0%

Reasons why companies plan for business expansion in The Philippines 5% Economic Recovery 5% Reasonable Production Costs 40% Availability of Trained Personnel/Efficient Manpower 35% Increasing Market Share 10% Diversification of Customer Base 5% Lack of Growth in Current Market/Countries The majority (83%) of respondents indicated that their companies plan to expand in the Philippines. None of the respondents expect to contract. The top three reasons for expansion in the Philippines are availability of trained personnel/efficient manpower, increasing market share, and diversification of customer base. Data from past years can be found in Appendix C, Table C-1.
Table 2.4.3 Location of ASEAN Expansion

2009 2010 2011 Into which specific ASEAN country or countries does your company plan to expand? Brunei 0% 0% 0% Cambodia 0% 4% 4% Indonesia 8% 25% 21% Laos 3% 0% 0% Malaysia 8% 11% 7% Myanmar 0% 0% 0% Philippines 49% 43% 32% Singapore 3% 0% 11% Thailand 0% 7% 7% Vietnam 31% 11% 18%

2012 0% 0% 3% 0% 0% 5% 49% 14% 11% 19%

The Philippines continues to be the most popular country for expansion, increasing from 32% in 2011 to 49% in 2012. Indonesia fell from its spot as the second most commonly cited country for ASEAN expansion (from 21% in 2011 to only 3% in 2012). 19% chose Vietnam as a country for ASEAN expansion, a slight increase from 18% in 2011. Myanmar grew from 0% in 2011 to 5% in 2012.

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Table 2.4.4 Diversification from China into ASEAN

2011 2012 Does your company plan to diversify some investments or business from China into ASEAN over the next two years? Yes 11% 8% No 59% 65% Not Sure 30% 28% Only 8% of respondents stated that their companies plan to diversify some investments or business from China into ASEAN over the next two years, a decrease from 11% in 2011.

2.5 ASEAN Integration


Table 2.5.1 Importance of ASEAN Integration

2009 2010 2011 Is ASEAN integration important to helping your company do business in the region? Yes 66% 67% 62% No 34% 33% 38% Not Sure Not Sure offered for the first time in 2012

2012 50% 30% 20%

ASEAN integration continues to be important in 2012, with half of the respondents reporting that it is important to helping their companies do business in the region.
Table 2.5.2 ASEAN Regional Strategies

ASEAN is seeking to develop the region as a single market and production base. Does your company have an ASEAN regional strategy based on these goals? Yes 8% No 70% Not Sure 23% Almost all of respondents in the Philippines (93%) either do not have an ASEAN regional strategy based on these goals or are not sure if they have a strategy based on these goals.

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2.6 ASEAN FTAs


Figure 2.6.1 Utilizing FTAs

Can your company utilize the provisions of the agreement to export goods or services from ASEAN to each specified country, import from those countries into ASEAN, or expand investment from ASEAN into each specified country?
70% 60% 50% 40% 30% 20% 10% 0% Australia and New Zealand China India Japan Korea 25% 25% 28% 30% 30% 33% 38% 28% 35% 20% Yes No

Figure 2.6.2 Importance of FTAs

How important is the agreement with each specified country to your companys investment plans in ASEAN?
120% 100% 33% 80% 60% 40% 20% 0% Australia and New Zealand Unimportant 40% 18% China Neutral 33% 55% 27% 29% 25% 80% 43% 14% 14% India Important 50%

25% Japan

20% Korea

Extremely Important

The ASEAN Free Trade Agreement with China can be utilized by the largest percentage of respondents in the Philippines (38%). The ASEAN FTA with Korea can be utilized by the smallest percentage of respondents in the Philippines (20%). The Free Trade Agreement with China is the most important to those who can utilize it. 82% of respondents consider it important or extremely important.

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2.7 Profit Outlook Compared to 2011, do you expect your profits in ASEAN in 2012 and 2013 to increase, decrease, or remain the same?
Figure 2.7 ASEAN profit outlook

Year of Survey Current Year Profit Expectation Coming Year Increase Remain Decrease Increase Remain Decrease

2006 64% 22% 13% 74% 17% 9%

2007 75% 20% 5% 87% 10% 3%

2008 57% 28% 15% 75% 18% 7%

2009 42% 36% 21% 59% 30% 10%

2010 72% 26% 0% 76% 20% 2%

2011 61% 28% 7% 70% 26% 0%

2012 73% 23% 3% 88% 8% 3%

Profit outlook are increasingly positive, with the majority of respondents (73%) expecting profits to increase in the current year, up from 2011s figure of 61%. 88% expect profits to increase in the coming year, up from 70% in 2011.

2.8 Workforce Expansion


Table 2.8.1 Workforce Expansion in 2012

Do you expect your companys total number of employees to increase, decrease, or remain the same in 2012? Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Increase 33% 26% 48% 48% 56% 63% 57% 33% 73% 67% 75% Same 55% 58% 40% 41% 35% 34% 39% 48% 24% 25% 20% Decrease 12% 16% 12% 11% 2% 3% 4% 19% 3% 7% 5%
Table 2.8.2 Percentage of Employee Increase

By what percentage will the number of employees increase? Year of Survey 2003 2004 2005 2006 2007 2008 2009 Workplace 0 to less than 5% Expansion 5 to less than 31% 38% 36% 28% 30% 38% 54% 10% 10 to less than 15% 15 to less than 20% 20 to less than 50% >50% 31% 43% 29% 40% 36% 27% 25%

2010 39%

2011 6% 41% 26%

2012 7% 20% 23% 7% 30% 13%

35% 21%

23% 15%

10% 10%

18% 18%

16% 12%

15% 21%

24% 10%

29% 4%

15% 12%

6% 0%

For the first time in 2011, 0-10% was further separated into 0-5% and 5-10%. 10-20% was separated into 10-15% and 15-20%.

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Most respondents (75%) expect the number of employees to grow, an increase from 67% in 2011. Out of these respondents, 43% expect an increase of 5% to 15%, and 30% expect an increase of 20% to 50%. Among the respondents who expect the number of employees to decrease (5%), 50% expect a decrease of 20% to 50% and the other 50% expect a decrease of 50% to 70%.

2.9 Expatriate Satisfaction


Table 2.9 Expatriate Satisfaction

Year of Survey 2009 2010 2011 2012 Does your company regularly receive requests from employees based in other locations to work in the Philippines? Yes 24% 15% 21% No 76% 85% 79% Are your expatriate employees generally satisfied with their assignments in the Philippines? Yes 85% 86% 93% No 15% 14% 7% Do your expatriate employees attempt to extend their time in the Philippines? Yes 66% 70% 77% No 34% 30% 23% 40% 60% 100% 0% 79% 21%

Overall expatriate employee satisfaction remains very high at 100%, an increase from 93% satisfaction in 2011. The majority of respondents (60%) stated that their companies do not regularly receive requests from employees in other locations to work in the Philippines. 79% of respondents stated that expatriate employees attempt to extend their time in the Philippines, a slight increase from 77% in 2011.

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3. FACTORS IMPACTING BUSINESS IN THE PHILIPPINES


Respondents were asked to rate their satisfaction with a series of local factors that could affect their business. The percentage of respondents who are satisfied or extremely satisfied with a given factor can be used to identify factors of strength. Conversely, the percentage of respondents dissatisfied or extremely dissatisfied with a particular factor can be used to identify areas held as concerns.

3.1 Local Business Environment Factors Major Strengths


(Responded Satisfied or Extremely Satisfied at a significant rate in the 2012 survey)
Table 3.1.1: Time Comparison of satisfaction with major strengths

Factors Availability of trained personnel Sentiment towards the U.S. Office lease costs Availability of low cost labor Personal security Stable government and political system

2003 74% 65%

2004 73%

2005 63%

2006 67% 59% 71%

2007 57% 69%

2008 62% 62% 60% 62%

2009 77% 73% 57% 67%

2010 70% 70% 63% 76%

2011 66% 76% 56% 62%

2012 78% 83% 60% 73% 58% 53%

See Appendix B, Table B -1 for responses on all listed factors). *Empty boxes indicate areas that were not strengths for the year indicated. Responses bolded represent that years response with the highest rate of satisfaction.

Satisfaction with international sentiment towards the U.S. is at its highest point (83%) since this survey began, and it is also the factor with the highest 2012 satisfaction rate for the Philippines. Satisfaction increased for all of the top strengths. The availability of trained personnel increased from 66% to 78%, sentiment towards the U.S. increased from 76% to 83%, office lease costs increased from 56% to 60%, and the availability of low cost labor increased from 62% to 73%.

Major Concerns
(Responded Dissatisfied or Extremely Dissatisfied at a considerable rate)
Table 3.1.2: Time Comparison of dissatisfaction with major concerns

Factors Corruption Infrastructure Laws and regulations Ease of moving products through customs

2003 91% 69%

2004 91% 69%

2005 88% 68%

2006 77% 50%

2007 72% 55%

2008 84% 54% 47%

2009 88% 49% 48%

2010 84% 46%

2011 79% 51% 62%

2012 73% 40% 43% 43%

(See Appendix B, Table B-1 for responses on all listed factors). *Empty boxes indicate areas that are not concerns for the year indicated. Responses bolded represent that years response with the highest rate of dissatisfaction.

Respondents in the Philippines do not consider tax structure and local protectionism to be major concerns in 2012. Laws and regulations became less of a concern for respondents in 2012, with only a 43% rate of dissatisfaction. Dissatisfaction with infrastructure decreased, with less than a majority of respondents (40%) selecting dissatisfied or extremely dissatisfied, compared with 51% in 2011. Dissatisfaction with corruption decreased slightly from 79% in 2011 to 73% this year, though it remains the leading concern. 15

3.2 Other Local Business Environment Factors Government Institutions


With regards to local government institutions, respondents are most satisfied with the Central Bank (48%) and the Ministry of Finance (46%). The institutions with the highest dissatisfaction rates are customs (51%) and taxation/revenue (37%). See appendix Table A-2 for more details.

Importing Goods
Table 3.2 Importing Goods into the Philippines

Is importing goods into the Philippines a significant problem for your company? Yes 31% No 69%

3.3 International Schools


Table 3.3: International schools

2009 2010 2011 2012 Will the ability to find adequate space at international educational institutions in the Philippines be a significant problem in the next 1-3 years? 42% 20% Yes 17% 48% 58% 65% No 84% 52% Do you feel that the government of the Philippines is actively pursuing solutions to correct the space constraint at international educational institutions? 25% 0% Yes 8% 10% 75% 56% No 92% 90% Will the lack of adequate space at international educational institutions in the Philippines affect your companys decision to hire more local employees over foreign employees? 25% 11% Yes 58% 40% 75% 56% No 42% 60%
*The option Not Sure was available for the first time in 2012.

The option not sure was offered for the first time in 2012. However, a majority of respondents still answered either yes or no for each question. The majority of respondents (65%) do not believe that the ability to find adequate space at international educational institutions in the Philippines will be a significant problem in the next 1-3 years. Most respondents (56%) do not feel that the government in the Philippines is actively pursuing solutions to correct the space constraint at international educational institutions. No respondents answered yes for this question. The majority of respondents (56%) do not believe that the lack of adequate space at international educational institutions in the Philippines will affect their companys decision to hire more local employees over foreign employees.

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4. CONCLUSION
Positive Outlook With 92% of respondents satisfied in 2012, outlook on the ASEAN region as an investment opportunity continues to stay extremely positive. 89% of respondents intend to expand their business coming years, and the primary reasons for this are increasing market share, availability of trained personnel, and a stable political system. Profit outlook for both 2012 and 2013 is largely positive. 73% expect an increase in 2012 and 88% do in 2013. These positive profit numbers reflect well on plans for workforce expansion as 75% of respondents planned on hiring new workers. ASEAN The ASEAN region continues to grow in importance because of the availability of change in business strategy and lack of opportunities for expansion elsewhere. Regional free trade agreements continue to be important to businesses in the Philippines and the China agreement, used by 38% of respondents, is the most popular. Respondents are looking to expand within ASEAN due to the availability of trained personnel, efficient manpower, and increased market share. 83% of respondents expect to expand in the coming two years with nearly half of them planning to focus on the Philippines. Location Specific The business climate improved in 2012 for the Philippines with roughly a fifth of respondents facing significant financing constraints and higher costs of borrowing, down from a quarter in 2011. Currently respondents experience a high level of satisfaction in the areas of labor cost, availability of trained personnel, and sentiment towards the United States. Housing and office costs, though rising, are also a source of satisfaction. Corruption was by far the greatest drawback for the Philippines leaving three quarters of the respondents dissatisfied, of which roughly half were extremely dissatisfied. The quality of infrastructure varies by region and also got mixed reviews. Although employees do not tend to request to work in the Philippines, that percentage is rising and expatriate employee satisfaction in the Philippines is at an all time high in 2012. This may partially be attributed to the fact that space constraints in international schools for expatriate workers have become less of an issue in recent years. 79% of employees ask to extend their time in the Philippines.

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APPENDICES
APPENDIX A: Sample Profile
Survey Year Scope of Responsibility Size of Current Workforce in Region Only one country Multiple countries Below 50 employees 50 to <500 employees 500 to <1000 employees 1000 to <1500 employees 1500 to <2000 employees 2000 employees or above Below $1 million $1 to <$50 million $50 to <$100 million $100 to <$500 million $500 to <$1 billion $1 billion or above Below 5% 5 to <25% 25 to <50% 50 to <75% 75 to <100% 100% Table A-1: Workforce and Turnover 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

38% 62% 38% 43% 7% 5% 5% 2% 14% 62% 12% 9% 2% 2% 67% 22% 3% 7%

37% 63% 43% 39% 9% 4% 2% 4% 24% 55% 10% 8% 2% 2%

43% 57% 36% 33% 18% 7% 2% 5% 11% 60% 11% 16% 4% 0%

55% 45% 38% 42% 13% 6% 0% 2% 15% 53% 11% 13% 2% 2%

42% 58% 38% 39% 10% 3% 3% 7% 12% 53% 24% 9% 3% 0%

42% 58% 32% 40% 16% 6% 2% 3% 12% 60% 10% 15% 2% 2%

52% 48% 28% 46% 13% 2% 2% 7% 6% 49% 17% 10% 7% 0% 72% 15% 3% 0% 5% 5%

51% 49% 26% 52% 8% 0% 2% 12% 8% 52% 17% 15% 4% 2% 51% 28% 9% 4% 2% 6%

66% 34% 19% 53% 9% 2% 0% 17% 9% 50% 11% 14% 7% 5% 63% 21% 7% 0% 2% 7%

63% 38% 25% 45% 13% 5% 3% 10% 10% 68% 5% 10% 0% 0% 62% 13% 10% 3% 5% 8%

Companys Past Year Turnover in the Philippines (USD)

Past Years Turnover As Percentage of Companys Global Turnover

Table A-2:ASEAN Turnover

Past Years Turnover as Percentage of Companys Total ASEAN Turnover ASEAN Country That Holds the Next Largest Turnover for Company

Below 5% 5 to less than 25% 25 to less than 50% 50 to less than 75% 75 to less than 100% 100% Vietnam Cambodia Indonesia Laos Malaysia Thailand Philippines Singapore Brunei Myanmar

2009 22% 53% 7% 2% 7% 10% 3% 0% 12% 9% 24% 22% 29%

2010 17% 46% 15% 4% 4% 13% 0% 0% 10% 12% 29% 27% 22%

2011 26% 42% 9% 2% 7% 14% 3% 0% 8% 0% 8% 36% 19% 25%

2012 31% 39% 10% 3% 5% 13% 0% 0% 10% 0% 8% 13% 21% 28% 0% 0%

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Table A-3: Primary Responsibility

Primary Activity Services Accounting Architecture and Engineering Services Banking Consulting Education Healthcare HR Services Insurance Brokers Legal Marketing & Communications Services Other Financial Services Software, IT, Telecommunications Services Transportation & Logistics Wholesale & Retail Business Process Outsourcing/ Shares Services Other Total Services Consumer Goods Electronics Food & Food Products Oil & Petrochemical Pharmaceuticals/Medical Machinery & Equipment Other Total Manufacturing

2009 0% 4% 4% 3% 1% 0% 4% 3% 0% 1% 6% 7% 3% 4% 3% 43% 9% 0% 3% 1% 1% 0% 12% 26% 28%

2010 0% 0% 2% 4% 0% 2% 2% 2% 0% 0% 2% 6% 2% 4% 10% 4% 40% 10% 4% 6% 4% 4% 0% 6% 34% 27%

2011 0% 2% 2% 2% 0% 4% 2% 0% 0% 6% 0% 8% 4% 4% 6% 4% 44% 15% 4% 4% 4% 0% 0% 15% 42% 12%

2012 3% 13% 0% 0% 3% 0% 3% 3% 0% 3% 3% 5% 5% 5% 23% 3% 72% 3% 0% 3% 0% 3% 0% 3% 12% 23%

Manufacturing

Other

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APPENDIX B: Local Factors Impacting Business


Table B-1: Satisfaction with factors

Total Extremely Extremely Total Satisfied Neutral Dissatisfied Satisfied Satisfied Dissatisfied Dissatisfied
Infrastructure Availability of raw materials Availability of low cost labor Availability of trained personnel Office lease costs Housing costs Laws & regulations Corruption Local protectionism Tax structure Personal security Stable government and political system New business incentives by government Sentiment towards the U.S. Free movement of goods within the region Ease of moving products through customs 40% 40% 73% 78% 60% 48% 33% 10% 23% 38% 58% 53% 45% 83% 30% 0% 3% 25% 28% 8% 5% 3% 3% 0% 10% 5% 3% 8% 30% 3% 40% 38% 48% 50% 53% 43% 30% 8% 23% 28% 53% 50% 38% 53% 28% 20% 13% 18% 10% 15% 18% 23% 15% 43% 30% 20% 25% 25% 10% 23% 28% 13% 5% 13% 18% 25% 35% 43% 18% 18% 15% 20% 15% 5% 28% 13% 3% 0% 0% 5% 3% 8% 30% 8% 10% 5% 3% 10% 3% 0% 40% 15% 5% 13% 23% 28% 43% 73% 25% 28% 20% 23% 25% 8% 28%

23%

8%

15%

23%

28%

15%

43%

Table B-2: Satisfaction with local government institutions

Total Satisfied Agency to promote/develop investment Customs Immigration Taxation/Revenue Central Bank Ministry of Finance 50% 23% 48% 30%

Extremely Satisfied 20% 3% 3% 3%

Satisfied 30% 20% 45% 28%

Neutral 25% 25% 23% 28%

Dissatisfied 10% 33% 18% 23%

Extremely Dissatisfied 0% 15% 8% 18%

Total Dissatisfied 10% 48% 25% 40%

39% 28%

5% 0%

33% 28%

36% 40%

5% 8%

0% 3%

5% 10%

Percentages may not add to 100 because Not Applicable and Dont Know were possible responses.

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APPENDIX C: Expansion in ASEAN over the Next Two Years


Table C-1: Top 3 Reasons for ASEAN Expansion

Year of Survey Reasons for Expansion Economic recovery Potential for business growth Increasing market share Reasonable production cost Diversity of customer base Lack of growth in current market/countries Availability of trained personnel/efficient manpower Availability of raw materials High level of personal security Low level of corruption Adequate laws and regulations to protect business Adequate laws and regulations to encourage foreign investment Stable government and political system Low level of local protectionism Weak competition in market/countries Other

2007 61% 61% 57% 39% 34% 9% 48%

2008 52% 52% 75% 39% 41% 7% 39%

2009 38% 84% 49% 27% 18% 7% 40%

2010 53% 84% 53% 26% 21% 5% 26% 3% 0% 0% 3% 5% 8% 0% 0% 5%

2011 41% 85% 49% 20% 27% 10% 20% 10% 0% 2% 0% 7% 10% 2% 5% 5%

2012 5% 0% 35% 5% 10% 5% 40% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Empty boxes indicate that no comparative data is available for those years. Table C-2: Top Reasons for ASEAN Importance over Next Two Years

Year of Survey Reason Economic recovery Limited growth opportunities in other regions Improvement in Infrastructure Increased availability of trained personnel Favorable government policies Stable political conditions Change in business strategy Other

2007 80% 33% 48% 38% 10% 13%

2008 49% 53% 60% 42% 23% 14% 23%

2009 89% 49% 53% 38% 13% 11% 30%

2010 88% 59% 44% 24% 24% 12% 24%

2011 76% 52% 48% 24% 24% 24% 27% 21%

2012 0% 22% 0% 4% 4% 9% 44% 17

Empty boxes indicate that no comparative data is available for those years. In 2012, data was tabulated to add up to 100%.

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