Holy Angel University

School of Business and Accountancy

Accountancy Department

Economic Development
Summer term

News Clipping

Submitted by:
Samia, Kyla Alyssa D.

A-221

Submitted to:
Dr. Maria Lina T. Ramoneda

June 19, 2023

News Clippings

Philippines among Q1 business sentiment leaders in Asia-Pacific — report

Philstar.com
June 16, 2023 | 7:40pm

MANILA, Philippines — Asia-Pacific has seen a leap in business sentiment in the first
quarter (Q1) of 2023, with the Philippines among the three emerging leaders in
attracting investor confidence, according to a report by a London-based data analytics
firm.

GlobalData report saw that alongside India and Vietnam, the Philippines benefited
from the region's unique market dynamics, regulatory environments, rapidly growing
economies and technological advancements that contributed to the positive outlook.
The Philippines, India, and Vietnam experienced an increase in business sentiment
of 11%, 8%, and 7% in the first quarter, respectively, compared to the same period in
2022.

Misa Singh, an analyst at GlobalData, cited progress and growing optimism about
business opportunities in emerging markets across APAC. "The improved sentiment
for India, the Philippines, and Vietnam bodes well and presents exciting opportunities
for businesses operating in these countries," he said. Singh also anticipates increased
initiatives such as product launches, capacity expansions and facility setups in the
region. Several companies are already taking advantage of the favorable business
climate in these countries, the GlobalData report said.

Grab Holdings Limited, for one, plans to launch two-wheel services in the Philippines.
Microchip Technology Inc. has increased its capacity in the country to support
technological advancements. Tupperware Brands Corp. aims to expand its air fryer
launch in the Philippines following its success in China. The report highlights other
APAC countries with improved sentiment, including Taiwan, New Zealand, South
Korea, Malaysia, and Indonesia.

Singapore and Japan, however, mostly maintained stable sentiment levels. China,
despite being the top APAC market, experienced a decline in sentiment. "This can be
attributed to geopolitical tensions, macroeconomic conditions, and regulatory
crackdowns on tech companies," Singh said.

Source: https://www.philstar.com/business/2023/06/16/2274386/philippines-among-
q1-business-sentiment-leaders-asia-pacific-report
News Clippings

Insights

It is surprising and delightful to receive news, how the Philippines strived to

become a business sentiment leader in the Asia-Pacific region during its first quarter
In fact according to the news report, the Philippines, India, and Vietnam experienced
an increase in business sentiment of 11%, 8%, and 7% in the first quarter,
respectively, compared to the same period in 2022. These results showed an
improvement on the Philippines’ unique market dynamics, regulatory environments,
rapidly growing economy and technological advancements. This illustrates a positive
effect on the following three sectors.

First, foreign direct investments (FDI) such as Grab Holdings Limited, who
plans to launch two-wheel services in the Philippines are taking a favorable advantage
on the country’s climate, based on the news report. Additionally, since the Philippines
have lower standards of living, the cost of production can be lessened with lower
wages which is another favorable advantage to foreign direct investments. Second,
the Philippine government will also be in favor as there will be an increase of income
to be taxed both in the business sector and future employees. Third, unemployed
Filipino citizens are in favor since if there are more FDIs that will enter the country,
expect that there are more job opportunities to have a stable job on their part. All of
these three sectors illustrate a positive effect upon seeing the news since they can
gain favorable advantage.

On the other hand, it is inevitable that there will be some sectors who are
negatively affected by the news. First, local businesses since there will be an increase
of business competitors which would put them in a difficult position while exerting more
effort in attracting their consumers. Second, the government and citizens of other
Asia-Pacific countries, such as China, who are experiencing a decline in sentiment
currently, are on the unfavorable side since the possible gains they could have
received like more job opportunities and income tax are shifted to the Philippines. All
of these illustrate a negative effect upon seeing the news since they do not gain
favorable advantage.

Overall, it can be concluded that there is a domino effect on the advantage of

one sector which leads to the advantage of other sectors. As a student, we can
contribute to this news by supporting the products of both FDIs businesses as well as
local businesses to continue the rapidly growing economy we have today.