Six promising sectors for U.S. exporters are summarized below. This list is not exclusive, so if your products or services are not listed here, please contact us using the form at the bottom of this page for an assessment of the market. You may also use this form to request information on typical market entry strategies, opening an office in Manila, and an unscreened list of potential local representatives for your company.

Introduction

Almost any U.S. product or service can find an interested buyer in the Philippines. The country is solidly pro-American, and the government and people are strong allies of the United States. The United States exports almost $8 billion annually to the Philippines, making this our 19th largest export market and our biggest customer in SE Asia. Thanks to our close relationship over the past 100 years, Filipinos are very knowledgeable about U.S. products and services and have a great affinity for them. Moreover, the Philippines is the world’s third largest English speaking nation, so U.S. firms seldom encounter language problems when doing business with Philippine companies. The U.S. presence is strong and growing.

(1) Telecommunications Equipment

Cellular mobile telephone system (CMTS) is the preferred mode of service with mobile subscribers hitting 60 million in 2009.  Landline subscribers grew to an estimated seven million due to the availability of wireless landline service.  CMTS subscribers in the Philippines are divided into two basic segments; postpaid and prepaid subscribers, with an estimated ratio of 15:85 in favor of prepaid.  3G users in the Philippines, whether for mobile phones or USB modem devices, are projected to grow to eight to 10 million in 2010.  This will be driven by social networking sites , location-based uses, gaming devices (delivering content through non-traditional devices), and healthcare, among others . The Philippines continues to be the world leader in the Short Messaging Service (SMS) market. Carriers process close to 1 billion text messages per day.

(2) Information, Communication and Technology (ICT)

The Philippine Information Technology market is primarily being driven by extraordinary growth in outsourced ICT services. The Philippines’ strongest market niche is in IT-enabled services or call centers. More and more companies are making infrastructure investments to support the demand for call center facilities. In fact, the Philippine call center/outsourcing industry is projected to be among the largest sectors in the country for the next five years.

(3) Electrical Power Systems

The Philippines is a world leader in renewable energy with a third of its total electric power needs met through renewable sources. The new Philippine renewable energy law, the Philippine Renewable Energy Act of 2008 (Republic Act 9531), is a supportive policy environment that offers fiscal and non-fiscal incentives to equipment manufacturers with the goal of achieving 60% renewable energy generation by 2017.  The implementation of the Electric Power Industry Reform Act (EPIRA) has gained momentum, as noted by recent consecutive successes in privatization of assets previously owned by the National Power Corporation (NPC).  

Demand for power will continue to grow strongly, driven by the expected increase in economic and industrial activity and the country’s growing population. The industry estimates demand for electric power will grow 9% annually, at least until the end of the decade.
 

(4) Building Products

The outlook on the Philippine construction industry sector is positive.  In 2010, the Philippine government is projected to continue its economic stimulus program as well as rebuild infrastructure damaged by the 2009 natural calamities.  Stimulus spending in 2010, however, is expected to be less than its 2009 figures since fiscal stability is a concern of the Philippine government.   

Private construction is expected to grow, particularly with residential projects that will address the 3.8 million housing backlog, commercial projects, and tourism/leisure facilities.  Because of the expected growth in the construction sector, Philippine imports of building products are projected to increase by at least 5% through 2012. Many U.S. made/U.S. brand building products, everything from locks to roofing, are readily available in the Philippines.

(5) Water Resource Equipment and Services

The Philippine market for water resource equipment/services is expected to grow by about 5 percent in the next two years. On-going and upcoming projects that address the increasing water demand and pressing water-related problems of the Philippine include limited access to potable water through water supply and distribution operations.  Roughly 30 million people throughout the country do not have access to potable water through water supply and distribution operations); lack of accurate water usage monitoring; large amount of “unaccounted-for-water” due to leaks in distribution pipes, inefficient metering and poor administration. The United States is a major source of water resource equipment and services of the Philippines.

(6) Medical Equipment

The medical industry in the Philippines is almost totally dependent on imports.  The medical equipment sector continues to present good opportunities for U.S. firms.  The U.S. was the leading source of imported equipment, with 30% market share.  Germany and Singapore follow with 12% and 11% market share, respectively.  Importers of medical equipment advise that import data on Singapore reflect transshipments from the U.S., Europe and other Asian countries, including Japan.

Additional Industry Sectors, market Entry Strategies, Other Information
Remember, you can contact us for an assessment of the Philippine market for other products or services not listed here. This free assistance is available only to exporters of goods and services that have at least 51 percent U.S. content.