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Young job seekers need to learn about the top industries where they can establish their careers. With that in mind, knowing which industries in the Philippines have shown stable growth amidst crises like the pandemic may help the younger generation determine what career path they wish to pursue to secure their future. On the other hand, young investors or professionals may find it difficult to know where to invest their hard-earned money. If you plan to invest in a certain industry, you might need to use strategies to determine which industries fit your preferences. Among the widely used methods of most investors is the top-down investment strategy.
The top-down investment approach seeks to optimize returns by assessing the economy’s status and the strength of various sectors and then selecting the best companies within those sectors. Investors can select the industries and equities within those sectors that are on the rise if the economy is doing well. Even if the economy isn’t doing well, some industries and businesses can defy the general trend.
To use the top-down investment strategy, one has to be aware of the top industries in the Philippines. By identifying the sectors driving the market higher and the top companies inside those sectors, investors can try to outperform the market.
Here are the top industries in the Philippines:
Real Estate Industry
The real estate sector is still thriving and is still one of the greatest industries to invest in in the Philippines. There will undoubtedly still be new commercial and residential construction as the government’sBuild, Build, Build (BBB)initiative continues with its promise of connecting various cities, provinces, and islands in the country.
Better infrastructure development for quicker and more convenient transit is worth considering. Locations that were previously difficult to reach are now easier to reach, and cities that were previously impassable will appear more attractive for land developers and potential property owners.
Real estate is one of the top industries in the Philippines that receives a significant amount of annual foreign direct investment. This shows that international investors anticipate a rise in the value of real estate properties in the Philippines.
Real Estate Investment Trust companies are anticipated to increase as businesses look for new funding sources. They may be the key player who presents prospects for even novice investors to get involved in the real estate market.
E-Commerce Industry
The e-commerce sector is one of the industries expected to grow significantly in 2022. The pandemic hasn’t stopped it from growing in 2020. The Department of Trade and Industry announced in 2021 that it intended to expand the e-commerce sector’s share of the GDP to 5.5%. This came about because it wants to take full advantage of the current move to digital.
ThePhilippine e-Commerce Roadmap 2022further states that, from P599 billion in 2020, the economy’s share of digital transactions is expected to increase to P1.2 trillion by 2022. In keeping with that, it has also predicted that, compared to roughly 500,000 last year, 1 million enterprises will be engaged in online retailing by next year.
In 2021, IKEA launched its biggest branch in the world in Pasay City. Its success ledIKEA to open e-commerce operations in Pampanga and Cebu this year, further proving the growth of the country’s e-commerce industry.
According to aJune 2023 article from BusinessWorld, the Philippine e-commerce market is expected to grow 15% to at least $16 billion in 2023 as the reopening of physical stores grows. In the Philippines, this sector is expected to project a yearly increase of 15.8% in transactional value until 2025. By 2025, e-commerce transactions are expected to reach Php 495.2 billion.
Construction Industry
The Philippines had the fastest-growing building industry in Asia-Pacific prior to the pandemic. Despite being affected by the pandemic, analysts at the data and analytics business GlobalData expected that it would recover this year. From 2021 to 2024, it is anticipated to expand at an average annual rate of 8.3%.
Again, despite the pandemic, the government’s Build, Build, Build program continues. For the execution of government projects, there is a sizable budget. It is reasonable to anticipate that as the nation’s infrastructure continues to expand, more employment and opportunities will be generated in this sector.
Tourism Industry
The continued collaboration between the public and private sector should be helpful in reviving pandemic-stricken sectors. Some of the affected sectors by the pandemic include the hotel, leisure, and tourism sectors. Despite this, it is anticipated that these industries will see a rise in deal volume.
Tourism affects the economy of the nation going forward. In order to support the nation’s recovery, Philippine authorities and stakeholders are now prioritizing domestic travel. Since 2021, various provinces have launched their own programs to boost tourism. In February 2022, it was announced that anew eco-tourism park in Cebuwould begin construction. This project is expected to drive more tourists to the area and add toCebu’s booming infrastructure networks. Thetest to reopen Batanes tourismhave also started in May 2022, attracting more domestic tourists.
BPO, IT, and Business Services
The Philippines’ top economic contributors in the past ten years included the IT, BPO, and business services sectors. Even though the nation has already made a name for itself as a top location for outsourcing worldwide operations, the pandemic affected the sector early 2020. During that time, a worldwide downturn, economic disruptions, and investment plans have been delayed.
Despite these setbacks, the outlook for this industry is now more solid and optimistic. This is thanks in part to the adjustments made to the new normal, resulting to a more stable working environment
- Employees are more informed about self-defense
- Better healthcare standards adopted in the workplace
- On-site and off-site teams assigned
- Work schedules now have more flexibility
In addition, the emergence of a third TELCO promises to enhance Internet connectivity. This should enhance the nation’s competitiveness in the worldwide market for digital jobs.
Manufacturing Industry
The manufacturing sector often receives the most FDI because international investors see its potential. The DTI stated that, despite the pandemic’s effects on this business, the manufacturing sector is already beginning to perk up and showing indications of recovery. This includes the auto industry’s restart, which began in September 2020. Based on the indicators in recent months, the values and volumes of production in the Philippines’ manufacturing sector also demonstrated improvement.
Retail Industry
Retail products expected to see the biggest rise include food, home, personal care, and healthcare products. These products are among those whose sales increased by 50% at the height of the pandemic. The furnishings and technological devices utilized in work-from-home setups are other products that are anticipated to perform well.
Should You Take a Risk in an Unfamiliar Industry?
If you are just starting your career and are planning to enter one of the Philippines’ top industries, there might be doubts in your mind. Learning about an industry you are interested in requires a lot of research. If you want to remain in that industry, you will need to remain resilient, as the competition is stiff in these industries. Despite these challenges, you are in for bigger opportunities and security as these industries are able to survive various crises.
For more real estate tips and advice, view our previous journalshere.
Photos from Deposit Photos
