More opportunities are emerging in the Philippines for investors seeking attractively priced assets, following changes to the rules governing mergers and acquisitions (M&As).
These findings are part of the new Covid-19 Response Report (CRR) produced by Oxford Business Group (OBG) in partnership with the professional services firm Reyes Tacandong & Co.
The CRR considers the impact of the decision to exempt M&A transactions valued below Php50 billion from review by the Philippine Competition Commission for a two-year period starting September 2020.
The report also explored the potential of the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act to improve the post-pandemic business and investment climate.
Other topical issues the report examined were the important operational changes witnessed by the business process outsourcing (BPO) industry across the Philippines’ during the pandemic. This setup was introduced to BPO employees to enable them to work remotely, made possible with the use of new technologies.
As regards the acceleration of tech-led innovation and implementation, the report also highlighted the new openings in e-commerce and the digital payment segment, buoyed by mobility restrictions and other changes in consumer behavior prompted by the virus.
The CRR also features an in-depth interview with Protacio Tacandong, COO of Reyes Tacandong & Co. where he shared his thoughts on the sectors ripe for investment.
“Largely internet-based businesses, as well as those selling essential goods and services delivered directly to the consumer, will see the most expansion,” Tacandong said. “Other sectors set for investment include construction; health care; financial services, especially digital banking and financial technology; BPO; utilities; agriculture and industrial farming; and the export of labor services.”
Patrick Cooke, OBG’s Regional Editor for Asia, said that while the imposition of stringent lockdown measures in the Philippines had curtailed a lengthy period of accelerated economic growth, pent-up demand in the country’s large internal market is expected to help bring about a relatively swift recovery once the disruption subsides.
“The Philippines is set to experience a severe economic contraction in 2020, with its consumption and services-led economy bearing the brunt of the crisis,” he said. “However, new trends borne out of the pandemic are already creating openings for agile and innovative businesses, and the country remains on course to be among the fastest-growing economies in ASEAN next year.”
The CRR forms part of a series of tailored reports which OBG is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Covid-19 Economic Impact Assessment articles and interviews.
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Oxford Business Group (OBG) is a global research and advisory company present in over 30 countries, spanning Africa, the Middle East, Asia, and the Americas. It is recognized internationally as a distinctive and respected provider of on-the-ground intelligence on world’s fastest-growing markets, termed The Yellow Slice, in reference to OBG’s corporate color.