Comparison of Philippine regions in 2023
Compare the regions of the Philippines and choose the optimal location for your business.
| Regions of the Philippines | NCR | Calabarzon region | Central Luzon | Central Visayas | Davao | Western Visayas | Northern Mindanao |
|---|---|---|---|---|---|---|---|
| Preferred city for incorporation of the company? | Manila | Batangas | Subic Bay Freeport Zone | Cebu City | Davao City | Bacolod | Cagayan de Oro |
| Business output market size? | US$104.1 Bn | US$40.4 Bn | US$ 24.6 Bn | US$18.2 Bn | US$12 Bn | US$ 11.2 Bn | US$10.9 Bn |
| Market size relative to the economy? | 38.1% | 14.8% | 9.0% | 6.7% | 4.4% | 4.1% | 4.0% |
| Local purchasing power (GDP per capita)? | US$8,146 | US$2,809 | US$2,185 | US$2,410 | US$2,390 | US$1,443 | US$2,280 |
| Total population? | 12.8 Mn | 14.4 Mn | 11.2 Mn | 6 Mn | 4.8 Mn | 4.4 Mn | 4.6 Mn |
| Most popular business sector? | BPO | Agri-Industry | Manufacturing | Heavy industry & shipping | Agriculture | IT-BPO | Automobile |
| Specific attractive Government incentives available? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Hub for the headquarters of multi-national firms? | Yes | No | No | No | No | No | No |
| City airport with direct flight to Europe, Asia and America? | Yes | No | No | Yes | Yes | No | No |
| Total foreign investment in 2017? | US$ 2.4 Bn | US$1.1 Bn | US$3.4 Bn | US$846 Mn | US$253 Mn | US$504 Mn | US$238 Mn |
| Logistical considerations | |||||||
| Attractive State for a manufacturing business? | Yes | Yes | Yes | Yes | No | No | Yes |
| Attractive State for a e-business? | Yes | No | No | No | No | Yes | No |
| Attractive State for an export-oriented service business? | Yes | No | No | No | No | Yes | No |
| CBD monthly office rental per sq m? | US$6 | US$6 | US$6 | US$4 | US$6 | US$7 | US$5 |
| Average monthly warehouse rental per sq m? | US$7 | US$3 | US$4 | US$2 | US$4 | US$2 | US$5 |
| Average monthly electricity prices? (per Kwh) | US$1 | US$1 | US$1 | US$1 | US$1 | US$1 | US$1 |
| Proximity of sea port to the main city? | 5 km | 2.5 km | 5 km | 6 km | 5 km | 5 km | 5 km |
| Proximity of airport in kilometres to the main city? | 20 km | 83 km | 20 km | 14 km | 33 km | 12 km | 43 km |
| Average annual inflation rate? | 1.2% | 0.9% | 2.2% | 3.2% | 3.2% | 1.9% | 1.4% |
| Corporate Banking and Finance considerations | |||||||
| Is the main city a financial services hub? | Yes | No | No | No | Yes | No | No |
| Recommended bank for corporate banking? | BPI | Metrobank | BPI | PNB | SBC | CBC | DBP |
| Quality of bank customer services? | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
| Quality of online banking services? | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
| Does the State have a reputable financial district? | No | No | No | No | No | No | No |
| Does the State have a local Stock Exchange? | No | No | No | No | No | No | No |
| Are there Private Equity Funds/VCs in the State? | No | No | No | No | No | No | No |
| Employment considerations | |||||||
| Average monthly salary for local employees? | US$158 | US$166 | US$158 | US$152 | US$141 | US$152 | US$140 |
| Average skilled labour monthly salary? | US$159 | US$166 | US$159 | US$153 | US$142 | US$153 | US$141 |
| Average unskilled labour monthly salary? | US$145 | US$126 | US$145 | US$145 | US$139 | US$123 | US$135 |
| Is there a large expatriate community in the State? | No | No | No | No | No | No | No |
| Mercer Survey Ranking for global cities? | Not ranked | Not ranked | Not ranked | Not ranked | Not ranked | Not ranked | Not ranked |
| Literacy rate? (% of population) | 98.2% | 98.4% | 98.2% | 96.2% | 95.2% | 95.4% | 95.4% |
| Accounting and tax considerations | |||||||
| How many tax exempt free zones available? | 21 | 57 | 21 | 51 | 16 | 22 | 10 |
| Local VAT rate? | 0% | 12% | 0% | 12% | 12% | 12% | 12% |
| Corporation tax rate? | 0% | 25% | 0% | 25% | 25% | 25% | 25% |
| Withholding tax on dividends to overseas shareholders? | 0% | 30% | 0% | 30% | 30% | 30% | 30% |
| Minimum monthly wage? | US$158 | US$166 | US$158 | US$152 | US$141 | US$152 | US$140 |
| Average pension and insurance benefits (% of salary)? | US$23 | US$23 | US$23 | US$23 | US$ 23 | US$23 | US$23 |
| Mandatory labour unions? | No | No | No | No | No | No | No |
| Other country considerations | |||||||
| Average unemployment rate? | 5.3% | ||||||
| Time zone? (ahead of GMT) | 8 hours | ||||||
| Quality of internet broadband and Wi-Fi? | Average | ||||||
| How many global banks are based in the state? | 24 | ||||||
| How many Filipino banks with local branches? | 20 | ||||||
| International schools for children of expatriate employees? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Golf courses near the main city of the State? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| General availability of bars and restaurants? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Will I find European F&B products in the supermarkets? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Is the main city of the State safe for expatriates? | Moderately | ||||||
| Computer literacy rate? (% of population) | 63% | ||||||
| Working overtime is common? | Yes | ||||||
| Payroll tax rates? | 1.19% | ||||||
| Stamp duty rate on asset transfers? | US$0.1 per US$4 | ||||||
| Real estate tax rate?? (per Kwh) | 3% | ||||||
| Monthly state tax filing required? | Yes | ||||||
| Business grants offered by the state government? | Yes | ||||||
| Specific tax incentives available in this state? | Yes | ||||||
| Average customs duty of export products? | 0% | ||||||
| Average customs duty for imported products? | 10.5% | ||||||
| Minimum notice to dismiss employees? | 1 month | ||||||
| Minimum redundancy indemnity? | 1 month | ||||||
