This is an open topic simply because I hear a lot of noise from people in Thailand, India, Malaysia Taiwan and China (I have relatives with factories in some of these countries) Now this is a discussion topic on why you would or wouldn’t open a business here…
Firstly I will start it off with a few things I know about or have heard of in the last couple of years…
The first was someone who had a business venture in Manila which was very successful the owner was getting on in age and a buyer approached from Hong Kong with a price that couldn’t be ignored. So they agreed a deal and started the process of sale with around P2.5m being paid into the account of the seller monthly. So everything is going well and they are preparing to just relax and enjoy retirement. Then one day a police colonel who was a regular at the establishment was sitting having a drink and a chat with the sellers wife and the wife let it slip they are receiving P2.5m a month while the business sale goes through.. although didn’t seem a major thing as the Colonel had been a regular at the business for a long-time.
Shortly afterwards (Exact time I’m unsure) the seller and his wife was arrested for being drug dealers. Cut a long story short the Police already “had a lawyer” ready for them (Negotiations) the wife cut a deal with the Police on arrest for P500,000 and was released that night (they had children at home). But the husband was more stubborn knowing that he wasn’t guilty and the evidence was not only fake but couldn’t even stand up in court. So nearly a year passed in prison and a heart attack later the trial finally got to the end (it was being heard by around 1hrs a week then suspended until the next week). A verdict of not guilty! because the time they were supposed to be dealing drugs from the house they were in Hong Kong finalising the deal. In that time he had spent over P2m on medical expenses and transportation to the court result being he left bitter to a country that he once loved and was nearly robbed of his life and money by people he once trusted.
A very poor restaurant wasn’t making any money and infact was very run down. A foreigner negotiated a business deal that gave him the lease of the restaurant for the foreseeable future. Within months he had introduced many changes and refitted the restaurant it was an almost instant success. The landlord approached and demanded the owner leave as he wanted the business back now that it was successful. He couldn’t do it legally but within one week the restaurant was for sale.. the price of a murder stands at around P5,000 in the Philippines.
Personal issues I have found over the time I’ve been here.. Immigration Visa fees are too high and you have to go bi-monthly which is way too often for anyone.. why not a 6 monthly like in Thailand? Why the huge increases which have doubled the cost of the Visas isn’t it enough I spend around P1m – P2m a year in the Philippines??
The problems with sanitation and waste removal are issues but they aren’t mine to fix. Its for the Philippines people to do something about but I would put it another way if you were visiting the Philippines as a tourist wouldn’t you want to see the beautiful side of the Philippines rather than rivers that resemble dumping sites and shanty towns full over poverty? Surely the tourist industry if developed can help change the Philippines but currently its not being assisted for these reasons aswell as the Kidnappings in the Northern and Southern Islands. In the U.K. If you go into the major holiday agents, try and find a guide for the Philippines. Look for Greece and there are 10+, Spain 10+, Thailand,Indian,Malaysia they are all there.. but the Philippines? There was only flights available last time I checked and no brochures..
Now for advantages the process of setting up business here (for your wife) is pretty straight forward in most cases. But as a foreigner most things aren’t available yet most industries are lacking capital..
I’ve started the ball rolling I hope you will feedback with ideas and why you do or don’t operate in the Philippines.