5 Legit Reasons Foreign CEOs Should Start a Business in the Philippines

5 Legit Reasons Foreign CEOs Should Start a Business in the PhilippinesTwo weeks ago, Presidential Spokesperson Edwin Lacierda announced that the Philippines jumped five notches higher in the World Economic Forum (WEF) Global Competitiveness Report for 2015. Lacierda attributed the economic boost to innovation, institutions, and macroeconomic environment.

Meanwhile, a Bloomberg report earlier this year indicated that the country’s economy in 2014 grew by 6.1 percent, making it the world’s second fastest growing economy, next to China’s who went up by 7 percent. These recent figures are proof that the country has tremendous potential for both foreign and local businesses who are looking into opening or expanding their operations.

In 2013, we asked David Elefant, owner of Dayanan Business Consultancy to share his thoughts about doing business in the Philippines. His contribution was a gem for foreign CEOs who wanted to do business in the country but found themselves at ground zero.

Why Choose the Philippines for Your Next Business Venture

This year, we compile a solid list of reasons why foreign CEOs should choose the Philippines for their next business venture!

Business registration is a breeze

Horror stories of bureaucratic red tape are fortunately dwindling in number! For non-locals, registration approval roughly takes fifteen (15) working days from acceptance of your documents. We suggest you bookmark this helpful list of requirements before you march your way into the appropriate offices. Or you can enlist the help of experienced business consultancy firms.

Locals speak excellent business English

In 2012, the Philippines was the world’s top country in business English proficiency. This is a result of reinforcing English as medium of instruction for both public and private schools in the the country. Furthermore, the newly-implemented Enhanced K to 12 Basic Education Program (K-12 Program) underlines the country’s commitment in advancing the nation’s education system. Additionally, the country’s literacy rate is currently at 97.5 percent.

A liberalized, trade-oriented economy

The Philippines allows for a Build-Operate-Transfer (BOT) investment scheme which most of its neighboring countries emulate. This guide by the Philippine Embassy in Netherlands explains the BOT scheme succinctly:

Government corporations are being privatized and the banking, insurance, shipping telecommunications and power industries have been deregulated. Incentive packages include the corporate income tax, reduced to a current 32%, with companies in the Special Economic Zones are subject to only 5% overall tax rates. Multinationals looking for regional headquarters are entitled to incentives such as tax exemptions and tax and duty-free importation of specific equipment and materials.

Young, educated, and globally competitive workforce

While Japan, Germany, and Italy are worried about their aging working class, the Philippines’ young workforce sustains the country’s attractiveness to foreign investors. 

National Competitiveness Council private sector co-chair Guillermo M. Luz considers this as a sign that the country will become, in his words, a very good investment site well beyond 2030. On the other hand, neighboring Asian countries such as China, South Korea, and Hong Kong, this report noted, will soon face a greying workforce which could potentially slow down the nations’ economic growth.

Last August, Oliver Segovia also pointed out in this Harvard Business Review article that a profound shift in the mindset of the younger workforce has pushed the country into steady economic growth.

“Traditionally, business process outsourcing was associated with high-volume, low-price work. Today, the mainstream appeal of Silicon Valley is turning young Filipino workers who might have been satisfied with a call center job a decade ago into a creative and entrepreneurial class seeking a deeper connection with innovation-driven and mission-focused companies. Working for a venture-backed start-up is the new status symbol,” Segovia wrote.  “As a startup founder, my biggest competitors in the talent market are no longer the local family conglomerates. They’re tech companies from the U.S., Germany, Singapore, and Japan coming to the Philippines.”

Low costs of living

Data collected between July 1, 2013 to Jan. 2, 2015 revealed that the Philippines is one of the world’s cheapest countries to live in.  The living costs for the countries surveyed were measured against that of New York City, touted as one of the most expensive in the world.

After Manila was recently considered as a costlier city for expats by Mercer’s 2015 Cost of Living Survey, several foreign entrepreneurs have opened operations  outside the nation’s capital.

Here’s an excerpt from a Tech in Asia article:

While Makati City, which is home to startup cluster Area 55, was identified as the most economically competitive region in the Philippines, cities outside Metro Manila had a very good showing. The CMCI ranked their economic competitiveness according to three equally weighted pillars, including economic dynamism, government efficiency, and infrastructure.

By these measures, five of the cities in the top ten most economically competitive were located outside the National Capital Region. These were Cagayan de Oro City in Northern Mindanao, Naga City in Bicol, Davao City in Davao, Iloilo City in Western Visayas, and Cebu City in Central Visayas.

Warm, Hospitable Locals

The country is globally known for its abundant supply of sun, sand, and sea! The warmth of the tropics also extends to its people who are equally open and hospitable to foreigners! As one of the happiest nations worldwide, foreign CEOs will find themselves working with accommodating, resilient, and endearingly kind locals. And who wouldn’t want a happy workforce? Happy employees are in fact more productive!

In conclusion, the Philippines has a perfect balance of happy, hardworking locals, low costs of living, and a competitive economy. All these elements can work to your favor as a foreign CEO who is looking into starting a business in the country.

Still curious about what it’s like to set up a business in the Philippines? Get in touch with the PayrollHero team for more insider info.

And if you’re looking into setting up a restaurant in the Philippines, this FREE starter kit was put together to give you high level information about the Philippines, share some thoughts from restaurant owners, and present relevant statistics from our market research.

You’re welcome!

Celebrity Interview: Shawn G Weinstein from Fox Sports Asia

Our next feature for the Celebrity Interview segment is former PBA player for the Meralco Bolts: Shawn Weinstein. Shawn also co-founded the PR firm WJG Asia and is currently a television host for Fox Sports Asia. We asked him about his experiences in the Philippines as an American Filipino.

1. What do you love about living in the Philippines?

The Philippines is a country with warm, friendly people and amazing natural resources. The flexibility and emphasis on family and social activities makes the country unique. The country’s passion for basketball is among the highest in the world. From a business perspective there are many and varied opportunities as the economy continues to grow and modernize.

Shawn_Weinstein2. What are you top 5 favourite restaurants and why?

1. Antonio’s Tagaytay– Fresh Ingredients, Robust Flavors, Scenic backdrop… Best restaurant in the Philippines…Steak! Steak! Steak!

2. Ark Café– Located in Makati’s, Manila’s business district, Great for Meetings and the chicken tacos are stellar.

3. Charlie’s Grind and Grill– No better burger in Manila!

4. Fely J’s– Filipino Cuisine at it’s finest. A Kare Kare which would make any Lola proud.

5. Wildflour Café and Bakery– Modern fusion menu, social setting is trendy…Kimchi brisket fried rice is outstanding and addictive.

3. You are from the US, is the fact that Applebee’s is making an entrance to the Philippines a big deal for you?

Applebee’s is a popular food chain in the United States and it is nice to see the addition to the Philippine market.

4. What other North American brand do you miss and would like to see in the Philippines?

In n Out burger would be at the top of my list. Fresh burgers made to order while you wait and hand cut french fries is a delicious choice that most of the Philippines would enjoy.

5. What is your favourite Philippine brand restaurant that should expand overseas?

I would love to see Antonio’s Tagaytay make its way overseas. Growing up in Los Angeles, California. I am sure it fits the profile of quality establishments that seasoned food lovers would appreciate.

Shawn_Weinstein Continue reading

Certified Profile: Clare Matchett, ServiceSeeking Manila

As part of a new series on this blog we will be profiling certified PayrollHero users to learn more about them, their business, where they go to learn and best practices. 

First up is Clare Matchett, General Manager for ServiceSeeking Manila.
Clare Matchett, SeekingService Manila, General Manager

1. How would you describe your business? 
ServiceSeeking Manila is the Manila arm of ServiceSeeking.com.au, Australia’s best way to get free quotes from local businesses. Our team handles customer service, sales, data analysis, web development, SEO and a whole lot more.


2. What tools do you use to recruit?
We use traditional recruiting tools like job websites, forums and events. One of the most successful recruitment channels is actually referrals from existing team members. Some of our best staff were encouraged to apply by friends and family who worked with us and loved the company culture and office atmosphere.

3. What is your hiring philosophy? 
We look closely at applicants’ personality and general aptitude and tend to place more emphasis on this than skills, education and past experience in our industry. If someone is the right fit, they’ll have the curiosity, bubbliness and problem solving ability that helps them thrive in a company that moves quickly and believes in collaboration, openness and fun.

4. What blogs / newsletters do you read to stay up to date in your industry?
My favourite newsletter is from Sandler Training, a sales training company with a no nonsense approach to prospecting and winning and keeping clients.

5. How do you build company culture at ServiceSeeking? 
We emphasise our company values and make these a core part of recruitment, training and annual reviews. Weekly wrap ups with the entire office also let everyone know what others are working on, celebrate the small “wins” and help team members see the importance of their own role in our big picture success.

6. I saw on Linkedin you were “Streamlining HR policies and the recruitment process” can you explain more about that?  
We’ve learned over the years that being different to the average big BPO company is a key factor in our success in Manila. We’ve worked hard to cut out policies and processes that are not in line with our values and can hold our team back from delivering great quality service.

7. Is speaking Tagalog an advantage to you in running the business? 
My tagalog has a long way to go, but I do think employees appreciate when a foreigner takes the time to learn! It has certainly helped me understand more about Philippine culture, and it always gets a smile when I drop a word into the conversation, even with the wrong pronunciation.

8. Regarding the PayrollHero Certifications, what did you think of the certification courses? 
I was very impressed with the certification courses PayrollHero and its training partners provide. We were helped along every step of the way and the support made the transition from outsourced payroll provider to running this in-house much more smooth.

9. Was the certifications helpful in getting the most out of PayrollHero?

Much of the software is intuitive and just “makes sense”, but payroll in the Philippines is notoriously complicated. We’ve been able to transition to using PayrollHero without adding any new team members and this is mostly because of the great communication with the PayrollHero staff. Discrepancy checks were particularly helpful in letting us know where we’re at with the transition and how to set up loans, advances, bonuses, allowances and government contributions correctly.


PayrollHero has a deliberate onboarding process that is designed to understand every customer’s unique needs so that we can quickly and effectively transition your business onto PayrollHero. Reach out today for a free, 30 min. one on one conversation about how PayrollHero can work within your organization.

How We Keep Young Star Talents from Leaving

Every employee is valuable. Repeating this old tired phrase really doesn’t mean much anymore. Sure, we know we are of value, but how valuable? Can we measure that? How do we know if our bosses are with us as much as we are with them in this company? Studies have revealed that the millennial generation is the population in the workforce that really values these questions, and use it to determine if they have join the right company to work for.

The PayrollHero Team has millennials as the majority. Just to be honest, our young talents in our team are being headhunted daily because they are doing such a stellar job and other companies are starting to take notice. However, the thought of leaving never occurred. Here’s how we keep our young rock stars with us!

We communicate all the time
There are no walls between management and the employees. We function as a team, always working towards the bigger picture. Our team is constantly on the move, functioning from different offices in Singapore, Canada and the Philippines, which is made easy using productivity apps like Slack. (Read on how we use Slack)

Having great communication means we are clear on the tasks each team has to complete and eliminate any grey areas and speculation. There can never be enough clarity when working with Millennials. Each team gathers for a huddle every morning to discuss completed tasks, give feedback- good or bad, in the moment. This way also we keep accountability crystal clear within the team.

Morning Huddles

Suggested reading: 5 Dysfunctions of a Team by Patrick Lencioni

Being flexible enough to meet halfway
PayrollHero is incredibly blessed with many gifted and talented millennials like Vince, and Maita. And we are more than happy to participate in out of office events as often as possible. We are with each other 10 hours in a day, every weekday and some weekends too and happy to do so. We work hard and play hard together.

Smiles at breakfast

Recognizing each employee’s lifestyle needs is important too. Millennials appreciate when a company acknowledges life outside of work. PayrollHero knows that mixing life and work as harmoniously as possible is one of the secret to making millennials happy to be at work. Fundamentally, we believe in getting things done. So, you can feel free to do activities you love, so long as you complete tasks that is required of you during the week.

Empowering each employee with ownership 
For a millennial, ownership means a lot. At PayrollHero, many members of the company have a stake in the company which ensures that everyone commits. As a millennial myself, I can see that having that kind of ownership is empowering because I can be a part of something bigger. The days of working for a company just for the paycheck are gone. Owning a part of the company is a great incentive for an individual. But more importantly, it pulls the team together to focus towards a common goal: to see the company succeed.

To know exactly how we work, you’ll just need to join us. We are hiring for many positions across all offices and even for home based roles.

Hotels in Fort Bonifacio, BGC, Taguig

We get asked all of the time what hotels should you consider when coming to the Philippines (ie. Manila, not to one of the islands, that is a different blog post). I recently made a list for an EO event that we are hosting in the coming weeks and thought I would share it here as well.

In Fort Bonifacio, Taguig
There are only a handful of hotels in the Fort (or BGC as some call it) but there are a few opening. Here are the ones currently open;

F1 Best Western – www.f1hotelmanila.com
Not a bad hotel, pricing is usually around $110 – $140 a night an includes breakfast. But check with them for their latest deals.

Seda Hotel – www.sedahotels.com
A boutique hotel right off of High Street. It is usually priced similar to the F1 but has a great roof top bar that can be fun to check out.

Ascott – www.the-ascott.com
The Ascott just opened in the Fort a few days ago.

Shangri-Lawww.shangri-la.com
Not open yet and behind schedule, but when it opens it should be awesome. It is at the other end of High Street from the Seda and looks to be the tallest tower in the Fort.

Grand Hyatt
Also not open, but will be an fantastic addition to the Fort when it does.

How Much Alcohol Can You Bring into Singapore?

Singapore can be expensive, especially when it comes to alcohol. It is highly taxed. A question came up the other day as some of our team was coming into visit the Singapore office – how much alcohol can I bring into Singapore?

Here is a handy image from Singapore customs that lets you know just how much you can bring with you?

Screen Shot 2015-01-18 at 3.01.51 PM

110056To give you an idea of costs from our three offices. A 750ML bottle of Absolute Vodka costs $19.99 in the Manila, C$24.75 in Whistler and S$49.50 in Singapore.

Convert that all to USD and you are looking at
$19.99 in the Manila
$20.64 in Whistler
$37.30 in Singapore (via Redmart)

So if you are making a trip to Singapore and adult beverages are something you might partake in, might be worth thinking ahead and packing some with you.