BMI View: We are maintain ing our positive outlook for the Philippines ' construction industry as it receives substantial support in the form of President Rodrigo Duterte ' s multi - billion dollar infrastructure investment plans as well as his aim to accelerate PPP projects and develop rural regions of the country .
Forecast & Industry Developments
We continue to forecast robust expansion in the Philippines' construction industry, which we expect to record real growth of 9.0% in 2017 and 8.5% in 2018.
President Rodrigo Duterte's plan to spend more than PHP7trn (USD144bn) in infrastructure between 2016 and 2022 will provide strong support to the construction industry, although we note bureaucratic obstacles which have previously weighed on project progression, particularly in the transport sector, will remain a hurdle.
Duterte's tilt toward China will drive greater investment and involvement from Chinese firms in infrastructure, with USD24bn worth of financing and investment deals signed after his state visit to Beijing in October.
Duterte's promise to honour existing public-private partnership contracts bodes well for policy continuity, while his pledge to review the framework will help to speed up future projects.
|f = BMI forecast. Source: Central Bank, National Statistical Coordination Board, BMI|
|Construction industry value, PHPbn||971.21||1,089.84||1,225.73||1,375.93||1,543.17||1,730.36|
|Construction Industry Value, Real Growth, % y-o-y||7.55||8.96||8.47||8.25||8.15||8.13|
|Construction Industry Value, % of GDP||6.6||6.8||6.9||7.1||7.2||7.3|
The Philippines continues to score of 51.9 out of 100 in our Asia Pacific Infrastructure Risk/Reward Index this quarter, keeping it in 17th position out of the 21 markets.
The country underperforms in Country Rewards and Industry Risks, reflecting a lingering lack of institutional capacity relative to its peers.
|Risk/Reward Index||Rewards||Industry Rewards||Country Rewards||Risks||Industry Risks||Country Risks|
The Philippines Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Philippines Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Philippine infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Philippines to test other views - a key input for successful budgetary and planning in the Philippine infrastructure market.
- Target business opportunities and risks in the Philippine infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Philippines.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.