With attractive factors such as a young, English-speaking citizenry, proximity to the Pacific Ocean, lucrative tax holidays, and streamlined trade processes, the Philippines, together with neighbours Malaysia andIndonesia, is tagged by ManpowerGroup as a practical area for top multinational companies to move into amidst escalating labour costs in China.
Previously, MNCs realized and benefitted from more cost-efficient labour in China. As time went on, China’s workforce value increased after a shift in its economic policy took place, leaning more towards strengthening consumer spending. The three booming Southeast Asian countries have become viable options for multinational firms, citing sturdy market trends in the region, a middle class that continues to gain purchasing power and a massive pool of young, talented, job-hunting individuals. Several of them have been making the southward move, hoping to take advantage of the opportunities in the insular triad.
Plus, China’s population is gradually ageing with only about one-fifth of its population aged 14 years old and below. Meanwhile, the Philippines has 34.3% in the same age bracket, offering a continued labour resource for the future.
The American human resource consultancy firm also pointed out the importance of entering the Philippine, Malaysian and Indonesian markets, particularly for consumer goods and automotive industries which are seen to experience highly-profitable growth in the region on the back of increasing household expenditure.
