Republic of the Philippines

Sorsogon State College

Sorsogon City Campus

ENGINEERING-ARCHITECTURE DEPARTMENT

A.Y.: 2017-2018

Proponent: Raul B. Enorme III

Jason E. Espedido
Market Opportunities

The Philippine construction industry is expected to continue to grow over the forecast
period (2016-2020). Industry growth will be supported by the country's development plan, Vision
2021, as well as population growth, urbanization, and favorable government policies with regards
to public-private partnership (PPPs).

The residential construction market is expected to benefit from government efforts to

construct low-cost housing units under various social housing schemes. Due to urbanization,
demand is increasing rapidly. According to government estimates, around 346,000 extra units
are required annually. To bridge the gap between demand and supply, the government has
announced various social housing programs: the Pag-IBIG Affordable Housing Program, the
Community Mortgage Program (CMP), the Core Housing Program, the Abot-Kaya Pabahay Fund
Developmental Loan Program (AKPF - DLP), and the Slum Upgrading Program. The government's
commitment to developing an adequate education system will drive the growth of institutional
construction market over the forecast period. In its 2015 budget, the government increased its
spending on education by 18.6%.

According to the 2017 World Economic Forum’s competitiveness report, the Philippines
ranked 97th in the world in terms of infrastructure. In a separate report by the United Nations,
the Philippines ranked 5th in Southeast Asia in terms of access to physical infrastructure. Duterte
also passed a new tax reform package, which is expected to raise sufficient revenues to fund
infrastructure spending. According to Mr. Chua, up to 70% of newly-raised revenues (estimated
to raise P786 billion over the next 5 years) are earmarked for supporting the “build, build, build”
campaign.
Our present administration is fully supporting of infrastructure development of the
country. This is a good opportunity for starting a construction firm. Under Philippine President
Rodrigo Duterte, the Southeast Asian country is experiencing an infrastructure boom unseen
since the time of strongman Ferdinand Marcos. This trend is a green light for all aspiring business
minded individual to start a construction firm. The country’s infrastructure development is
shoulder by government programs including Vision 2021 and Build Build Build government
program. Urbanization and population growth will play a role for the success of a starting
construction firm. Urbanization will create a lot of construction projects in provinces like
Sorsogon. Exponential population growth will lead to high demand of residential houses.
Therefore this will sustains adequate construction projects for starting company firm. The
government’ commitment to developing an adequate education system will also help gives
opportunity by creating plenty of school building construction projects. That a construction firm
can dig in. There are much more opportunities of getting construction projects provided by the
government development plan such as low-cost housing project, roads and bridges. The growth
of construction activity in the Philippines is a great opportunity for starting a construction
business anywhere across the country like Sorsogon province.