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Country Reports

Philippines Country Report

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Risk Level

Low
Moderate
Elevated
High
Very High
Severe
Extreme

Overview

Executive Summary

President Rodrigo Duterte's popularity is being eroded by accelerating food price inflation. The rising cost of living has rapidly broadened public discontent beyond concern over the politicised arrests of prominent critics of the government and thousands of extra-judicial killings in the "War on Drugs". However, the president continues to enjoy the support of clear majorities in both houses of the legislature, and there is no stable opposition to challenge his authority. The Philippines has the highest corporate tax rates in Southeast Asia, but the government aims to lower rates from 30% to 25% by 2021, while eliminating exemptions and incentives for large companies. The December 2017 Tax Reform for Acceleration and Inclusion (TRAIN) imposed a reduction in income tax but increased levies on diesel, oil products, and cars. Additional fiscal revenues will be needed increasingly to fund ambitious infrastructure development plans that include a new inter-city rail, an industrial park, water management facilities, power generation plants, and flood controls. Almost one-third of government expenditures is committed to the "Build, Build, Build" programme, and the government plans to continue increasing its infrastructure spending to more than 7% of GDP by 2022. Financing this programme and completing planned schemes are increasingly being hindered by rising interest rates, a weakening peso, trade deficits, and capital market volatility amid global trade tensions. Communist, ethnic-Moro, and Islamist insurgencies are continuing across Mindanao. The insurgencies mostly threaten disruption, rather than material damage, to commercial assets: ongoing military campaigns have degraded militants' capabilities since late 2017. The New People's Army in eastern Mindanao detonates crude explosive devices near telecom towers, has set fire to parked commercial vehicles near agribusiness plantations, and regularly extorts local mining firms. Open sources report that Islamic State-linked groups in western Mindanao possess military grade firearms and will target mainly security force personnel. © 2018, IHS Markit Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
Last update: November 13, 2018

Operational Outlook

The government's broad attitude towards foreign investment is positive, particularly in sectors where the Board of Investments (BOI) seeks to encourage greater foreign participation, such as manufacturing, agriculture, IT services, and telecommunications. However, President Rodrigo Duterte's inclination to arbitrarily intervene in business-government disputes, including in the telecommunications, power, and energy sectors, raises operational risks. Foreign investment is restricted to minority ownership in specific sectors, such as retail and financial services. Demand for bribes by officials is also common. Special economic zones generally enjoy better infrastructure and provide special incentives to foreign investors.

Last update: September 4, 2018

Terrorism

Very high

Terrorism risks are likely to increase across Mindanao in late 2018 as security forces confront resurgent Islamist and ethnic-Moro militants after the announcement of the draft Bangsamoro Organic Law. Although military operations have degraded militant capability, local recruitment continues, and well-connected foreign fighters remain active in the Philippines. Islamic State-linked groups will conduct attacks against security forces in Mindanao using small-arms and improvised explosive devices. Although terrorism risks are lower across the rest of the Philippines, there is a moderate risk that militants may attempt attacks in Manila.

Last update: October 9, 2018

War Risks

The Philippines is involved in a long-standing territorial dispute with China over Scarborough Shoal and the Spratly Islands in the South China Sea. Although a full-scale military conflict is unlikely, there is an ongoing risk of limited confrontation. This risk will increase if China begins construction on Scarborough Shoal and the Philippines invokes its mutual defence treaty with the United States. Successfully established joint exploration of oil blocks in the South China Sea would reduce the risk of confrontation.

Last update: October 9, 2018

Social Stability

Elevated

Politically motivated protests will remain common in Manila but are mostly peaceful and typically do not cause substantial property damage. Popular protests by up to 10,000 people will probably be motivated by corruption scandals, elections, aggressive actions by China in the South China Sea, or incidents pertaining to the US military presence in the Philippines. Anti-mining protests supported by NGOs are also probable in Cagayan, Caraga, Marinduque, Mindanao, Misamis Oriental, Oriental Mindoro, and Palawan regions but will also largely remain peaceful.

Last update: October 9, 2018

Health Risk

Severe

Vaccinations required to enter the country

Proof of vaccination against yellow fever is required for travelers over one year of age arriving from a country with risk of yellow fever (YFV) transmission and for travelers who have been in transit in an airport located in a country with risk of YFV transmission.

Routine Vaccinations

Hepatitis A: A vaccine is available for anyone over one year of age. The vaccine may not be effective for certain people, e.g. those born before 1945 and who lived as a child in a developing country and/or have a past history of jaundice (icterus). These people can instead get a shot of immune globulin (IG) to boost their immunity against the disease.

Hepatitis B: A vaccine is available for children at least two months old.

Diphtheria-Tetanus-Polio: A booster shot should be administered if necessary (once every ten years).

Other Vaccinations

Typhoid Fever: If your travels take you to regions with poor sanitary conditions (for children two years old and up).

Rabies: For prolonged stays in an isolated region (for children from when they can walk).

Japanese Encephalitis: For stays of longer than one month in a rural zone during the rainy season (for children over the age of one). The vaccine is administered in a local medical facility.

Malaria: Recommended preventive medication - mefloquine (sometimes marketed as Lariam) or doxycycline (sometimes marketed as Vibramycin).

For Children: All standard childhood immunizations should be up-to-date. In the case of a long stay, the BCG vaccine is recommended for children over one month and the MMR (measles-mumps-rubella) vaccine for children over nine months.

Last update: November 28, 2013

Natural Risks

Severe

The country is prone to serious volcanic and seismic activity as it is located in the Ring of Fire, an area along the Pacific Ocean in which 75 percent of the world's active volcanoes are found and almost 90 percent of all earthquakes take place. Mount Bulusan, a volcano located some 250 km (160 mi) from the capital Manila, spewed ash in June 2016 and triggered 113 earthquakes over 24 hours. Earthquakes occur on a regular basis (on average one per month) and can trigger tidal waves. A tsunami warning was issued in April 2017 after a 6.8-magnitude earthquake struck off the southern coast of Mindanao. Nationwide earthquake drills occur on a regular basis, with all types of businesses and institutions (educational, medical, government) taking part in a scenario simulating a 7.2-magnitude earthquake (on the Richter scale.) 

The Philippines is regularly exposed to typhoons and tropical storms during the monsoon season - which spans from November to April in the northeast, and from May to October in the southwest. On November 8, 2013, the powerful cyclone Haiyan devastated the central Philippines; 6000 people were killed and millions of others lost their homes. In October 2015, Cyclone Koppu struck the north of the archipelago, killing 50 people and injuring tens of thousands on the island of Luzon. The latest major meteorological incidents occurred during the 2016 monsoon season, during which two typhoons and one tornado hit the Philippines. No casualties were reported, but severe floods and mudslides followed torrential rains.

Last update: February 13, 2018

Transportation

Elevated

Traveling by car can be dangerous in the Philippines due to dense, chaotic, and unpredictable traffic, especially in metro Manila. Roads are frequently congested and drivers aggressive, causing emergency services to struggle to reach accident sites on time, as they are often not given the right-of-way.

The sub-par state of roads outside large cities may pose a risk for travelers. Avoid traveling off national highways and in secluded, rural areas. Criminals may attempt to attract your attention by feigning a need for assistance, or by wearing military uniforms and forcing vehicles to stop at fake checkpoints. Always drive with the doors locked, windows rolled up, and all belongings out of sight.

Individuals present in the Philippines should never hail a taxi off the street; instead, pre-book it from your hotel. Check that the meter is functioning.

Domestic air travel can be dangerous. All Philippine airlines are listed on the European Union "blacklist" due to insufficient safety standards and poor maintenance of aircrafts. Nonetheless, Philippines Airlines and Cebu Pacific have substantially improved their safety measures. In June 2015, the European Commission announced that Philippine air companies could once again utilize European airspace after a five-year prohibition.

Last update: February 13, 2018

Practical Information

Climate

The climate of the Philippines is tropical. Conditions in the south are especially hot and humid and the region receives abundant rain throughout the year. Towards the north, monsoon winds bring rain from July until October, with a peak in rainfall between August and October. This period is also cyclone season. From October to February, conditions are cooler and generally dry, except along the northern coasts. Between March and May, the weather is hot and dry.

Useful Numbers

Country Code: +63
Emergency Services: 117
Police: 168

Electricity

Voltage: 220 V ~ 60 Hz

Outlets:

Last update: January 21, 2014