JUNE 2018 COVER STORY:

As one of the top three growth performers in the region in 2017, the Philippines is fast becoming a hotspot for investments. With its strong growth in tourism-based enterprises, families having easier access to housing credit and liberalisation of trade policy, foreign retailers now have better opportunities to market their product and services.

Led by mission leaders Mr Mark Yong, Singapore Furniture Industries Council President & Director of Ewins Pte Ltd and Ms Kee Ai Nah, Enterprise Singapore Executive Director, the 11-company delegation headed to Manila on a SFIC-ESG business development mission this month.

Participating companies for the trip comprised of Comfort Design, Ewins, IDV Concepts Asia, Kompacplus, Renovator Hub, Sungei Emas, Sunyu Products and Services, Superstructure SG, Synergraphic Design, TraDesk and TheKnowHow.In.

Designed to business-match Singapore companies with Philippines’ fit-out solutions & distributors, the four-day mission had been an eye-opener, especially for newcomers such as Mr Edwin Tan from Kompacplus who now appreciates the strength in numbers.

“Through this mission, I finally understood the meaning of hunting in a pack. Such efforts by the organisers, ESG and SFIC, are commendable as they help SMEs with limited resources gain quick market knowledge and ease their access to market”, said Mr Tan.

ESG’s local and overseas office in the Philippines had been instrumental in curating the itinerary, with scheduled meetings with major Philippines players such as SDW Realty (part of the HMR Group, a leading surplus superstore), JPM Inc. and high-end property developer AboitizLand.

In an area outside of Bonifacio Global City, a visit to one of the office construction sites offered a firsthand view of the extent of the new developments that are taking place. One of the main contractors of these projects, JPM Inc. was on hand to take questions ranging from material/supplier selection to work processes. The delegates were able to see for themselves the standard of the workmanship at such developments as well as ascertain how their own products and services can best fit the requirements.

The intensive four-day session had been educational and relevant, prompting Mr Kelvin Kwek from Sungei Emas to comment that he was convinced he now has a clearer market entry strategy. An equally appreciative Mr Aaron Boo from KnowHow.In complimented SFIC on the insights he had gleaned, where he had ‘’learnt three months’ worth of learning in just three days’’.

The mission also elicited praise from many other participants such as Mr Larry Goh from Tradesk: “(This has been) a successful mission, whereby we (have) not only met potential business partners overseas, but (it has) also created opportunities for collaboration within the Singapore delegation.”

According to Philippine Socioeconomic Planning Secretary Ernesto Pernia, Philippines’s economic growth in 2018 could surpass China’s 6.9 percent growth in 2017 and the World Bank’s forecast of 6.7 percent. Mr Pernia has estimated growth to be between 7 and 8 percent this year.

The Growth Asia pillar of SFIC’s three-year 2021 industry roadmap launched this March has since introduced new SFIC business development missions to key areas in the region, with a recent one in Shanghai just last month.

At a networking session graced by the presence of Her Excellency, Ms Kok Li Peng, Singapore’s Ambassador to the Philippines, it was shared by a Filipino delegate that there has been a growing trend of local families buying several properties for family members, thanks to the rising incomes earned from working overseas.

With a spike in property demand, the demand for complementary products and services such as furniture and furnishings as well as fit-out services for developments also comes naturally. Our local industry players stand a good chance to penetrate this market, as mission leader Mr Yong can attest to.

Ewins has been distributing Parklex, a brand of natural wood surface materials for indoor and outdoor applications made in Spain, in several countries in Southeast Asia. The materials have since 2014 been installed in more than ten residential and commercial projects, mainly in Metro Manila.

Summing up the mission, Mr Yong says:

“This had been an enlightening business mission for the 11 companies that were with us on the trip. In a short but concise four-day itinerary put together by ESG and SFIC, the delegates had a clear snapshot of the Philippines business landscape, particularly related to the construction, furniture and furnishings sectors, and the countless opportunities that the rapidly growing market offers for our material and fit-out companies. Connections were forged amongst the delegates and the Philippine companies we met, and I am certain this will be the beginning of many fruitful collaborations.”

As a sign of good things to come, Ms Charisse Bantiling, the Design & Construction Management Head of Trends & Concepts (also one of the Filipino hosts), will be heading down to Singapore to meet with local industry players to explore collaboration opportunities.