Ok I have convinced you to invest in the Philippines… what now?
Hold your horses … I have given you the positive side, better to read this other side of the coin.
What are the disadvantages of investing in the Philippines?
The Philippines has a swing mode of economic laws and regulations.
Let me explain, the constitution of the Philippines is pattern to the United States Laws with a twist.
It is a republic and democracy speaking is not stable.
What do I mean …?
The Constitution on the Philippines are updated by two kinds,
By Laws thru congress and senate and
By coup de eta
One example is the BOT system (Build Operate Transfer) this kind of investment is good if there's a reasonable economic safety net on the investor's side, but on the contrary there's none. A number of BOT projects have been "cancelled" or "hold" because of unstable laws and regulations.
It's like a basketball game that changes regulations on the middle of the game.
There's a 60/40 regulation (60% Filipino / 40% foreign) to invest in the Philippines.
You must have a Filipino partner to open up a business.
Some foreigners (according to hearsay) marry a Filipino wife or husband and became a Filipino citizen to over come this regulation.
Also there's a kind of business attitude that some Filipino still practice in the business circle … the crab mentality. You're lucky if your business partner will not "coup de eta"
The business you have put up.
Accessibility of facility
Your business should be located in a place where power, communication, road and water are accessible.
Your business should have a good PR (public relation) to dance to the tune of politicians.
Some businesses do this and survive thru the years.
Gaya Gaya (duplication)
Filipinos practice gaya-gaya system. if your business is booming, you will find somebody duplicating your business.