Investment Entry Points in the Philippines

The Philippines was one of the fastest growing economies in the ASEAN region. The growth was driven by high GDP growth, rising middle class, stronger government spending and increasing foreign investments. One of the most vital sectors in the Philippine where foreign investors can invest would be the petroleum industry. This study aimed to analyze the attractiveness of the Philippine petroleum sector, assess the risks and prospects, evaluate opportunities and barriers in investing in the sector, and recommend specific investment entry points for both foreign corporate and individual investors. External and internal assessment, trend analysis, benchmarking, supply and demand gap analysis, discounted cash flow and relative valuation were used to identify investment entry points for foreign investors in the petroleum sector. Upon analyzing the sector, it was concluded that it is indeed attractive. Major drivers include decreasing dominance of the big players, favorable business climate and increasing government support and incentives for new entrants. For individual investors, Petron Corporation has been chosen as an attractive choice based on its intrinsic value. Overall, the sector was favorable for potential entrants. However, investors should be wary about new trends in the sector in order to take advantage of higher returns on investment.