Expatriates and foreign investors are always looking for booming industries to invest in. When they see that a country’s economy is progressing, these business sharks instantly look at getting the bigger bite from these lucrative trades.
In 2018, an article released by Business Insider noted that the Philippines is the top country that foreign investors can look into for business opportunities. Capitalists in the country consider these factors – economic stability, technological expertise, innovation and most importantly, its people’s interests. All 4 factors are present in the Philippines.
The world is currently experiencing a pandemic and admittedly, the Philippines has been badly hit by it. Strangely though, there is some good coming out of this trying time. The lapses in the country’s economic growth are slowly being revealed and so does the opportunity for change. For expats, these are glaring investment opportunities.
Investment Opportunities for Expats in the Philippines
Here are five top business industries that expats should definitely consider when looking for the next big investment in the country.
It is no longer a surprise that renewable energy is the future. While the shift to this was advocated before, it is getting more public traction just very recently. It’s probably because the world has experienced more natural disasters and thus, is bent on protecting our resources. There’s the fact too that energy cost is getting higher.
Since then, more and more people are slowly transitioning to renewable energy. There’s hydro, geothermal, wind and the widely used solar. Solar energy, as it can be done in a small scale, made its way to business and residential structures. Whether it is for business or for residential use, solar-powered panels have become a worthy investment, making renewable energy companies thriving now more than ever.
While businesses or households may not find the solar panels or a solar power system a priority at this moment, it will become one once the pandemic dies down. It will naturally become a priority too as the country is transitioning to a digital technology landscape that will need a stable energy supply.
The demand for renewable energy source in the Philippines outweighs the number of renewable energy companies operating here. You can look at the possibility to put up or invest in one now.
Speaking of technology, another worthwhile business investment is one that deals with finance.
The Philippines is only beginning to adopt cashless transaction systems. While there are two main Fintech companies leading the charge, more and more banks are also making the digital shift.
When the pandemic hit, more and more industries have turned to fintech to protect their finances and continue their business transactions despite the rule on physical distancing. The fear of technology of most Filipinos was driven out when they realized how helpful and impactful going cashless is. Thus, fintech companies have thrived more than ever.
Another result from the pandemic is the shifting of focus to the importance of online education. Since social distancing is being observed while the pandemic is ongoing, local schools and universities have had to put the gas on investing in a digital way of teaching, fast. While the shift has not been easy, more and more schools have seen the impact it has to its students and its teaching staff.
Online education is a great investment for expats because it is something that will always be needed, even after the pandemic is over. Education is an industry that is constantly evolving and the country takes pride in investing into its future generations. Schools are also more open to the idea of online schooling because it opens a variety of opportunities to more and more families.
Online Delivery Business
Another thriving business is the online delivery industry. From small businesses to large enterprises, each relied on online delivery to continue their transactions. From food to groceries to shopping items and just about anything you can buy online, the local delivery and logistics industry is a great place to invest your money in.
At the moment, there are only a handful of accredited online delivery businesses allowed by the government to run. And these are also primarily allowed in capital cities such as Metro Manila in Luzon, Cebu in Visayas and Davao in Mindanao. The need for it to be available country-wide is glaring. Investing in an online delivery business offers a great amount of opportunity for growth and success.
Filipinos are very much into entertainment, and they churn out spectacular output when given the chance. Sadly though, this is an industry that is sometimes left untapped and put behind. Investing in Philippine arts is a worthwhile investment because not only does it have an amazing opportunity for growth but it also gives expats the chance to help keep and help flourish such an important part of the country and its people.
Is it a good time to invest?
It is a challenging time battling the pandemic, not just for the Philippines, but the world in general. Global economy is severely affected with significant decline in performance.
The Philippines, having a consumer-driven economy, is trying to withstand the economic blows brought by the series of lockdown. The consumption behaviour of the people is too restricted. Unemployment rates are going high. This scenario may not pose as a good investors’ playing field for the moment. But, it is worth considering that the Philippine government is exerting every effort with all hands on deck to try to boost the economy. So you have to lookout for the next business opportunity that this move will bring.
While there are other industries you can explore, the business industries listed above are a great start in your search for your next investment. You just wait and see what this resilient economy of the Philippines can offer you.
You might also wanna check Know before you Buy: Condos in the Philippines.