Investing in the Philippines can be much cheaper if you earn in dollars. Take into account, for example, that every US dollar can be converted to about PHP55, one Canadian dollar can be exchanged into PHP41, and every Australian dollar into more or less PHP36 as of this writing. Just imagine, your USD10,000 will already be worth half a million pesos, which can already be used to buy a brand new small car in the Philippines. This can also meet the cost to finish college education, have a dream wedding, or spend at least two to three days in a luxurious island in the Philippines.
As someone in finance, I have seen that running a business can provide greater possibility to enjoy each day of your life, rather than staying in regular employment. You can consider the Philippines to allow you to transition from being an employee abroad into a businessman back in the motherland, increasing your cash inflow.
If you need business ideas, there’s plenty to go around: You can consider starting a business processing office, a restaurant, information technology services, or organizing events or tourist activities, as it’s easy to reach very interesting rural areas for tourists. You can also open a bed and breakfast, spa, or bring products from the country where you currently reside and sell to the following locations in the Philippines. Below, we listed four places in the Philippines that we believe are worth considering for your potential business because of their safe and business-friendly environment.
Compared to other areas in the Philippines, these Metro Manila cities promote ease of doing business. All four cities boast a vast number of English-speaking, skilled, and professional labor force available; convenient transportation; proximity to the international airport (NAIA); and business supportive local government; not to mention they house millions of foreign and local markets.
1. Makati City
As one of the Philippines’ Central Business Districts, Makati City is known in the country as the financial hub. It has the biggest concentration of major banks, multinational corporations, shopping malls, foreign embassies, and entertainment, and getting there will only take about a 20- to 30-minute ride from the international airport via taxi or car service.
Day and night, the city is packed with people of different nationalities roaming the city from 8a.m. until midnight. Though there is a dense number of people doing business in this area, the place is secured by the city government and the businesses’ security-installed facilities to better serve their clients.
Registering your business may take about a month, so it’s important to know rental options. You can search for spaces online via Booking.com, carousell.ph or Lamudi. As for hotels, depending on your preference, prices may range from USD40 to USD300 per night. We recommend hotels situated near Ayala Triangle Gardens or Ayala Avenue, like Somerset, Dusit Thani, Makati Shangri-La, Raffles Makati, Fairmont Makati, Discovery Primea, Peninsula Manila, New World, or Makati Diamond Residences. You can check out this Google Maps link to see the Makati map.
As for your business, virtual and shared offices in Makati can start at around USD100 per month; for physical spaces, it can cost up to a certain percentage of your monthly sales.
2. Ortigas Center
Just like Makati, Ortigas is known as a Central Business District of the Philippines, since it is situated at the center of the biggest developed cities in the capital of the Philippines: in particular, Quezon City, Manila, Pasig, San Juan, and Mandaluyong.
Ortigas Center is likewise an ideal place to do business, since shopping malls, condominiums, offices, bars, cafes, restaurants, and hotels are accessible on foot. Among the hotels to consider here are EDSA Shangri-La, Discovery Suites, Marco Polo Ortigas, and Richmonde Hotel. Ortigas houses the main offices of several of the largest companies in the Philippines, like San Miguel Corporation, Jollibee, BDO main office, and Asian Development Bank, among others.
However, roads and parking spaces can get so packed, that people would really prefer to walk than ride or drive a car. Compared to other cities in Metro Manila, the cost of spaces in Ortigas can also be higher. Every square meter costs about PHP1,000 per month. Virtual offices offered by Regus and KMC can help cut your cost as you start your business.
3. Bonifacio Global City, Taguig
Bonifacio Global City, also called BGC, is popular as a financial district in the Philippines since the Philippine Stock Exchange now holds office in this area. It can also cater to the population of Makati City since it only takes at least ten minutes to get there from Makati via taxi or ride-hailing app Grab, depending on the traffic situation.
The cost of office spaces in BGC can be comparable to that of Makati or Ortigas, but more expensive compared to Muntinlupa City, since BGC is perceived as an upscale and luxurious area. The multitude of modern buildings (a good mix of offices, condos, and hotels such as Shangri-La The Fort, Ascott BGC, and Grand Hyatt Manila), cafés, restaurants, shopping centers, and green spaces here make it a good place to consider for one’s business and home.
4. Alabang/Filinvest City, Muntinlupa City
Muntinlupa City is a highly urbanized city situated about 25 minutes away from the international airport in Metro Manila (NAIA). Filinvest City is continuously progressing, with more buildings being built and are available for leasing as commercial space as of this time. There are also more business opportunities available.
Since the city is still flourishing, the cost of living and price of commercial spaces are cheaper compared to the previous three cities. You may find that the prices of 5-star hotels like Acacia Hotel and Vivere Suites are more affordable in this area compared to hotels in Makati City or BGC. The population in Muntinlupa is also fast growing, perhaps because there is less traffic congestion compared to other Metro Manila cities, and there are even more green areas in this place.
The above-mentioned locations—all within Metro Manila (and easily searchable on Google Maps)—are relatively safe areas for pedestrians to roam around in. They also house most of the prime residential areas, hotels, schools, government offices, hospitals, and shopping centers, making business prospecting—and eventual transactions—more convenient to carry out.
The author, Carmela J. Valbuena-Paano, CPA,MBA, is a CPA in public practice and a professor of accounts, tax, and business. Her practice ranges from providing assistance in business registration, accounting service, tax services, payroll services, and other management advisory services. If you have any questions on PH taxation, registering your business, and other topics related to her expertise, message us on Facebook or send us an email at [email protected].