The Philippine business sector is always on the move, and staying current with the latest developments can give you a competitive edge. In this article, we’ll explore the breaking business news in the Philippines and the current trends that entrepreneurs and aspiring business owners need to know.
Update on the Philippine Economy
The Philippine economy is expected to experience a significant decline in 2020 due to the pandemic, with an estimated contraction of -4.5% to -6.6% for the whole year. The World Bank reported that the country’s growth may regain a 5.5% increase in 2021. The government is working on measures like Bayanihan 2 to help businesses and individuals deal with the crisis. The Bayanihan 2 is an extension to the previous COVID-related response legislation (Bayanihan To Heal As One Act).
The Rise of Digital Commerce
Online shopping has become increasingly popular due to the pandemic, with consumers preferring to minimize outdoor activities while still having their needs met. The Department of Trade and Industry (DTI) reported a 57% increase in online registrations of businesses since March 2020. Entrepreneurs who opt-out of selling online may miss out on potential customers and sales opportunities.
Support for SMEs and Startups
The Philippine government has long recognized the importance of Small and Medium Enterprises (SMEs) for economic growth. The Department of Trade and Industry (DTI) has been providing various support and development programs, including a new program under the P3-PERFORM. In addition, BIR has released simplified tax rules in the hopes of easing taxation burdens and driving entrepreneurship.
Philippine E-Commerce Law Amendment
The Philippine government approved an amendment to its Electronic Commerce Act (ECA) in August 2020. The amendment aims to address the current issues in online transactions such as cyber-security, consumer complaints, and disputes. As more entrepreneurs and merchants turn to e-commerce, the amendment aims to promote a secure digital environment where online businesses can thrive.
Final Thoughts
Knowing the latest updates and trends in the Philippine business industry is crucial for entrepreneurs and business owners. While the pandemic has impacted the economy, digital commerce is set to rise and the government is working on support programs. It’s important to stay up-to-date with new policies and regulations like the ECA amendment as they may impact your business. Keep your business resilient through the tough times and find ways to adapt your strategies towards growth opportunities.
