Philippines Operational Risk Report

Providing expert analysis on the risks and opportunities, examining the threats stemming from the labour market, logistics infrastructure, trade & investment regulations and crime & security.

Report covers 4 key areas of risk: Labour Market Risk, Logistics Risk, Trade and Investment Risk, and Crime and Security Risk.

Why you should buy this report

  • Understand the capabilities of the workforce  in order  to guard against any issues that might impact your business
  • Know the strengths and weaknesses of the country’s supply chain and utilities infrastructure and how this would support or challenge your operations
  • Evaluate how trade restrictions and investor-focused  legislation could present problems for your company
  • Gain insight on the greatest crime and security threats to your staff and business operations in the country.
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Philippines Operational Risk Report
Product Price
$1,555.00

The first published edition of the Philippines Operational Risk Report provides investors with detailed insight on the practicalities and major risks of operating in Philippines, whilst also comparing the country to the wider region.

The report examines the threats posed by the labour market, logistics infrastructure, trade & investment regulations and crime & security, providing an essential tool when operating in or looking to operate in the market.

Key Uses of the Report:

  • Labour Market Risk: Understand the capabilities of the workforce in order to guard against any issues that might impact your business
  • Logistics Risk: Know the strengths and weaknesses of the country’s supply chain and utilities infrastructure and how this would support or challenge your operations
  • Trade and Investment Risk: Evaluate how the trade restrictions & investor-focused legislation could present problems for your company
  • Crime and Security Risk: Discover the greatest threats to your staff and business operating in the country

The Philippines Operational Risk Report by Business Monitor includes four major sections covering Labour Market Risk, Logistics Risk, Trade and Investment Risk and Crime and Security Risk.

Labour Market Risk:

What are the main risks to operating in Philippines posed by the labour market?
The Report assesses the labour market risks facing businesses and investors in Philippines regarding the availability and qualifications of the labour force and potential costs stemming from overregulated or restrictive labour markets.

Availability of Labour: This segment analyses the main risks facing businesses regarding the size of the labour force.

These include overall employment, female participation, life expectancy, demographic population deployment and forecasts for workforce size by sector. It also evaluates the basic skill set of the workforce, literacy and numeracy rates, and the quality of the primary educational infrastructure, compared with the wider region.

Education: Assessing the potential pressures facing businesses requiring a skilled labour force with secondary or tertiary education qualifications. This covers the quality, density and graduation rates for both secondary and tertiary education, with a particular focus on engineering, science, mathematics and technological graduates.

Labour Costs: This covers the challenges presented by regulations governing labour taxes, minimum wages, annual leave, severance pay, and foreign worker visas. It assesses the costs of employment that face businesses and investors. It also evaluates risk stemming from unionisation and strike activity, and the comparative rigidity of the labour market around regulations concerning the racial and gender demographic requirements for employment.

Key Benefits:

  • Evaluate Philippines’s labour market risk profile against its regional peers and by 170 states globally, helping you understand the size, education and rigidity of the labour market in relation to other markets.
  • Guard against risks posed by a limited skilled labour pool, high costs and limited labour market flexibility, and the potential risks and costs associated with the importation of foreign skilled labour.

Logistics Risk:

What are the main risks to operating in Philippines posed by the logistics and utilities?
The Report analyses the logistics risks facing Philippines’s supply chains, utilising the Business Monitor Logistics Risk Index that compares levels of risk across 170 states worldwide.

Transport Network – This section assesses the extent and quality of Philippines’s transport system broken down by mode, with supporting analysis on specific transport challenges such as congestion and underdeveloped infrastructure.

Trade Procedures and Governance – Providing ease of trading benchmarking, as well as analysis evaluating trade bureaucracy and its impact on import and export costs and lead times, and Philippines’s level of connectivity to international trade routes.

Market Size and Utilities – Looking at the growth outlook of the market and the pressure this will place on the country’s supply chains. Providing analysis of utility costs and availability in Philippines and their impact on sector specific supply chains.

Key Benefits:

  • Compare the supply chain risks between developing manufacturing hubs and commodity producing nations, by benchmarking Philippines’s logistics risk profile against regional peers and by 170 states globally.
  • Prepare your company for any supply chain challenges as you expand your existing operations within Philippines or consider moving into the market for the first time.

Trade and Investment Risk:

What are the main risks to operating in Philippines posed by trade and investment?
The Report assesses the trade and investment risks facing businesses and investors in Philippines via insights into FDI flows, key import and export markets, government intervention, taxation, and the development of the legal system.

Economic Openness: This segment presents the risks posed to businesses and investors looking to enter the country, assessing its overall openness to foreign direct investment, and attractiveness as an investment destination compared with its regional peers. The Report highlights key investment opportunities in specific sectors, and evaluates trade flows, main trading partners and products. It also analyses the development of the financial market, the density of the banking sector, availability of credit, and the sophistication of the market.

Government Intervention: Highlighting key risks stemming from the taxation system, to both resident and non-resident companies and individuals, together with a breakdown of the tax requirements. It also evaluates potential risks posed by the bureaucratic requirements surrounding businesses.

Legal Risk Analysis: Covering the observance of the rule of law and corruption, this section evaluates the main risks that investors and businesses face from the enforceability of contracts, together with property and intellectual property protection rights. It also assesses e-governance development and governmental transparency.

Key Benefits:

  • Benchmark Philippines’s trade and investment risk profile against its regional peers and by 170 states globally, allowing easy comparison of investment and trade flow risks between markets.
  • Identify, evaluate and anticipate risks posed by financial market sophistication, favourable tax regimes and the comparative development of the legal system.

Crime and Security Risk:

What are the main risks to operating in Philippines posed by crime and security?
The Report examines the crime and security risks faced by foreign business travellers and other expatriates in Philippines, utilising the Business Monitor Crime and Security Risk Index of 170 states worldwide.

Criminal Risks – This section looks into the risks faced by foreign business travellers and expatriates from a full range of crimes, including petty crimes and nuisances, scams, assault, murder, kidnapping, and cyber crimes. It also examines the risks to foreign businesses from organised crime, and the competence and the reliability of local law enforcement agencies.

Terrorism Risks – Looks at the risks of a terrorist attack or major acts of political violence, based on the size, motivations, geographic spread, and capabilities of terrorist/extremist groups. It also assesses the country’s attractiveness as a target, transit point, or safe haven for international terror groups. The Report also looks at the effectiveness of Philippines’s counterterrorism forces.

Interstate Security Risks – This section assesses the likelihood of the country becoming embroiled in international conflict, based on its existing and anticipated international disputes, bilateral and multilateral dispute resolution mechanisms, and any military alliances it has. It also assesses the country’s military capabilities in relation to potential aggressors.

Key Benefits:

  • Contrast the criminal, terrorism and interstate security risks of Philippines against its regional peers and in relation to 170 states globally.
  • Protect your business against the threats of crime, terrorism, and international conflict when deciding whether to expand your existing operations in Philippines or move into the market for the first time.
BMI View
7
Table: Philippines - Operational Risk Score
9
SWOT
10
Operational Risk SWOT
10
Labour Market Risk
12
BMI View
12
Table: Philippines and Regional Average - Labour Market Risk
13
SWOT
14
Education Analysis
16
Education
16
General Education
17
Tertiary Education
20
Availability Of Labour Analysis
24
Availability Of Labour
24
Size Of Labour Force
25
Composition Of Labour
28
Labour Costs Analysis
32
Labour Costs
32
Cost and Flexibility of Labour
33
Table: Philippines - Labour Regulations Governing Flexibility of Workforce
36
Logistics Risk
37
BMI View
37
Table: Philippines - Logistics Risk
39
SWOT
40
Market Size And Utilities Analysis
42
Market Size And Utilities Availability
42
Utilities Costs and Reliability
43
Table: Electricity Risks
43
Table: Fuel Risks
46
Table: Telecommunications Risks
48
Table: Water Risks
51
Transport Network Analysis
53
Extent and Quality of Transport Network
54
Table: Road Risks
55
Table: Rail Risks
56
Table: Ports And Inland Waterway Risks
58
Table: Air Transport Risks
61
Trade Procedures And Governance Analysis
63
Trade Procedures And Governance
63
Ease and Costs of Trade
64
Table: Export And Import Procedures
64
Table: Export And Import Procedures
65
Trade and Investment Risk
66
BMI View
66
Table: Philippines - Trade And Investment Risk
68
SWOT
69
Economic Openness Analysis
71
Trade Openness
73
Table: Philippines - Top 5 Import Partners & Product Imports, 2010-2014, USDmn
76
Table: Philippines - Free Trade Agreements
78
Investment Openness
78
Table: Philippines - Free Trade Zones And Investment Incentives
79
Table: Philippines - Regulatory Restrictions On Foreign Investment
82
Government Intervention Analysis
83
Taxation
85
Table: Philippines - Business Taxes
85
Table: Philippines - Personal Income Tax
87
Financial Barriers
87
Legal Environment Analysis
90
Bureaucratic Environment
91
Table: Bureaucratic Procedures
92
Legal Environment
92
Crime and Security Risk
96
BMI View
96
Table: Philippines - Crime And Security Risk
98
SWOT
99
Conflict Risk Analysis
101
Terrorism And Political Violence
103
Table: Main Active Terrorist Groups In The Philippines
104
Interstate Conflict Risk
105
Table: Major Conflict Flashpoints in the Philippines
106
Vulnerability To Crime Analysis
109
Violent And Petty Crime
111
Capability Of The Police Force
113
Business Crime Analysis
116
Financial Crime And Cybercrime
118
Business Costs Of Crime
121
Table: Business Response To Risk In The Philippines
123
Methodology
124
Table: Operational Risk Pillars, Weighting (%)
124
Table: Weighting Of Indicators (%)
127