ECONOMY OF THE PHILIPPINES AND ITS NEIGHBORS:MALAYSIA AND INDONESIA

Victoria RockMGMT220-1201A-04Prof. Ryan RepichJanuary 21, 2012

ABSTRACT

INTRODUCTION

Economy of the Philippines

A candidate to lead Asia Economic position challenged.Sluggish economic growth.Affected be Asia economic crisis Capitalist market economy in Asia Newly industrialized country

Economy of the Philippines (2012)

GDP: $351.4 billionGDP growth: 7.3%GDP per capita:

$3,500GPD by sector Agriculture: 12.3% Industry: 32.6% Services: 55.1% 

Inflation: 3.8%Exports: $50.68

billionImport: $61.07billionPublic debt: 52.4%

of GDP 

Philippine Economic Strengths

Large agriculture sector

ManufacturingMining Foreign Workers

RemittanceServices- Tourism

Business process outsourcing

Industrial Sector Manufacturing

electronics High-tech

components Foods and

beverages

Economy of Malaysia

Centre of trade for centuries.

Affected by Asian crisis.

Emerged as multi-sector economy.

Rapid economic boom

Economy of Malaysia (2012)

GDP : $414.4 billion

GDP real growth rate: 7.2%

GDP per capita : $14,700

GDP by sectoragriculture:

10.5%industry: 41.4%services: 48.2%

Inflation : 1.7%Public Debt : 53.1%

of GDP

Malaysia Economic Strengths

Services : 48.2%Industry : 41.4%Agriculture :

10.5%RubberPalm oilCocoaRiceTimber

Economy of Indonesia

On significant economic reforms.Declining debt-to-GDP ratio.One of the three best stock market

performers in the world.Suffered major disasters.Affected by Asian economic crisis.

Economy of Indonesia (2012)

GDP : $1.03 trillion

GDP real growth rate : 6.1%

GDP per capita : $4,200

GDP by sectoragriculture:

15.3%industry: 47%services: 37.6%

Inflation : 5.1%Public Debt :

25.7% of GDP

Indonesia Economic Strengths

Services

Industrypetroleum and

natural gasTextilesApparelMining

AgriculturePalm oilRiceTeaCoffeeSpicesRubber

Impacts of Economic Strengths

Similarities in Economic strengths.

Tourism competitionAll three are behind China.Indonesia and Malaysia slower this year.

Investing in the Philippines: Management Issues

Economic Instability

Graft and Corruption

Safety threatsDisasters

NaturalMan-made

Investing in the Philippines: Management Issues

Non-compliance of relevant business factors:minimum wage lawspayment of right taxeshealth and safety requirementsworking hours

Conclusion

Most Asian countries including Philippines, Malaysia and Indonesia have suffered, and perhaps will be suffering from economic crisis, but these countries have been exerting all their best efforts to get up from the pack. Malaysia has advanced much ahead in is economic conditions while the Philippines and Indonesia are still struggling to improve their economic situation. So far there has been good signs of improvements, despite the different challenges faced.

References

 Background Note: Philippines. (2012, January 17). Retrieved from U.S.

Department of State: http://www.state.gov/r/pa/ei/bgn/2794.htm#econPhilippines: Economy. (n.d.). Retrieved from Wikipedia; The free

encyclopedia: http://en.wikipedia.org/wiki/PhilippinesPhilippines: Uniquely Rising from Its Past. (n.d.). Retrieved from Thomas

White: Global Investing: http://www.thomaswhite.com/explore-the-world/philippines.aspx

World Factbook: Indonesia. (2012, January 3). Retrieved from Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/id.html

World Factbook: Malaysia. (2012, January 3). Retrieved from Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html

World Factbook: Philippines. (2011, December 20). Retrieved from Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html