November 11, 2024 | 12:00am
HSBC Philippines, which will celebrate its 150th anniversary in the Philippines next year, remains steadfast in its support to help propel the country to superstar status in the next decade.
HSBC, one of the country’s leading international banks, last week hosted a media discussion and business summit at the Shangri-La The Fort in Bonifacio Global City called “Philippines: ASEAN’s Rising Star” as part of its planned activities that coincide with its 150th anniversary and aim to look forward to the nation’s economic future.
According to HSBC Philippines president and CEO Sandeep Uppal, the bank is helping reinforce the country’s potential as an ASEAN investment hub. The bank’s role is to enable foreign direct investments and other nation-building activities to help the Philippines reach economic powerhouse status.
Special Assistant to the President for Investment and Economic Affairs Frederick Go, in his presentation, cited key sectors such as the steel industry, pharmaceuticals, tourism and infrastructure.
Thus, for Uppal, “A key driver of economic growth is strong collaboration between the private sector and government. As a global bank with deep local expertise, we’ve always been committed to acting as a bridge to unlock opportunities for development,” he said.
“We’re optimistic about what we can do to collectively propel the Philippines from ASEAN’s Rising Star to Asia’s Superstar.”
Echoing Uppal’s view was Corrie Purisima, HSBC Philippines head of markets and securities services, who pointed out that “according to HSBC Global Research, growth in Philippine GDP is expected to reach 6.7 percent by 2026, potentially making it one of the region’s top performers in terms of growth.” She added, “This is further complemented by the fact that services exports continue to rise and even outpace the growth of international remittances, while foreign direct investments or FDIs maintain a promising outlook with historic levels of foreign investments approved.”
HSBC Global Research’s ASEAN economist Aris Dacanay, in his presentation at the forum, cited some statistics noted by the International Monetary Fund’s World Economic Outlook and the United Nations Conference on Trade and Development. These include:
• Incremental demand in the Philippines is expected to grow by an average of $45 billion from now until 2029.
• From the 33rd largest economy in 2024, the Philippines is expected to jump five ranks and become the 28th largest economy by 2029.
• The Philippines is expected to overtake Thailand and become the second-largest economy in the Association of Southeast Asian Nations.
• Since 2013, the Philippines’ global share in trade has increased by 0.11 percentage points, the second-largest increase in ASEAN.
Furthermore, Dacanay also cited some key reforms the Philippines has undertaken over the past two decades. These include:
• Extended VAT Reform (2005)
• ASEAN Trade in Goods Agreement or ATIGA (2006)
• Sin Tax Law or Republic Act 10351 (2013)
• Tax Incentives Management and Transparency Act or TIMTA law (2015)
• Comprehensive Tax Reform Program or the CTRP (2016-2022)
• Ambitious Infrastructure Agenda (2016 onwards)
• Rice Tariffication Law or Republic Act 11203 (2019)
• Package 2+ and the Universal Health Care Law (2019-2020)
• Public Service Act or Republic Act 11659 (2022)
• Renewable Energy Act (2022)
• Digital Tax or Republic Act 12023 (2024)
HSBC Philippines is, thus, confident these developments signify an opportune time to hold conversations and initiate collaborations that will sustain the country’s growth momentum. For the global bank, this growth comes in three facets – economy, population and trade liberalization – all creating an appealing destination for new investments or expansions of existing ventures. Nearly 150 years in the country have allowed HSBC Philippines to track trends and developments as they arise, building industry expertise that understands the local market as well as the global landscape.
Aside from Secretary Go, other industry leaders such as Unilever Philippines chairman and CEO Fredy Ong, Ayala Land Inc. president and CEO Meean Dy and United Laboratories Inc. chairman and Group CEO Clinton Hess shared valuable insights into the country’s economic opportunities and strategies for attracting more investments.
The insights shared by the top executives of Unilever, Ayala Land and Unilab – all of whom are clients of the bank – also spotlight the country’s overall role in the ASEAN and global economy, while providing HSBC Philippines’ firsthand perspective on driving growth and leveraging collaboration to achieve it.
“Being a multi-awarded bank that has also put promises into action – whether working with the Philippine Economic Zone Authority to attract more foreign investment or supporting government trade missions to establish global partnerships – we pride ourselves on going above and beyond what we’re typically known for,” HSBC Philippines head of wholesale banking Mimi Concha said, adding, “Apart from meeting our clients’ needs, we’ve also remained dedicated to the larger purpose of enabling economic growth. Not only does this benefit the Philippines at large, but it also provides a world of opportunities for our clients who are pursuing their own goals.”
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