SWOT Analysis of Philippines. The Republic of the Philippines is a Southeast Asian country. The country comprises 7,641 Islands, and their geographical division falls into three categories; Mindanao, Visayas, and Luzon. The capital of the country is Manila.
Philippines shares the border with the following countries;
- China in the Northwest
- Vietnam in the West
- Malaysia in Southwest
- Indonesia in the South
- Palau in the Southeast and East
- Japan in Northeast
- Taiwan in the North
Key statistical facts and figures about the Philippines are as follows;
- Total Area of the country comprising of 300,000 square miles
- Approximately 109,035,343 people are populating the country by 2020
- The nominal GDP of the country is 440 billion US dollars, and it is 36th highest in the world in 2023
- The per Capita earning of the country is 3905 US dollars
Philippines is a member of the following organizations;
- Asian Pacific Economic Cooperation Forum
- World Trade Organization
- United Nations
Today, we’ll discuss the swot analysis of Philippines. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the Southeast Asian country. Here’s the swot analysis of Philippines as follows;
Strengths of Philippines
Some of the main strengths in the swot analysis of Philippines are as follows;
According to an estimate, approximately more than 50% of the Philippines’ population comprises young people under the age of 25. They have got great fluency in both Filipino and English languages. Fluency in English makes them potential candidates to work in foreign countries.
The vast geographical area of the Philippines comprises 7641 Islands. Beaches and Islands are a great source of tourist attraction. If the country could work on the development of tourism, then it would increase the company’s revenue and profitability to a great extent.
Poverty Reduction Program
The Filipino government has recently launched the poverty reduction program by the name of Pantawid Pamilyang Pilipino Program. Such programs are necessary for the growth and development of the country. The 4Ps plan has got following objectives;
- Conducting family development session
- Enrolment of children in daycare
- Children Education
- Health checkups for children and pregnant women
- Giving financial support to the needy and poor families
Weaknesses of Philippines
Some of the main weaknesses in the swot analysis of Philippines are as follows;
Roads, building hotels, restaurants, railway tracks, and airports fall under the category of the country’s infrastructure. The country’s infrastructure plays a significant role in its growth and development; inadequate and insufficient infrastructure of the country makes it difficult to attract foreign investors.
There is a percept of a high level of corruption in the country’s bureaucracy and administration just like in any other 3rd world Asian country. The shortcoming and flaw of the Filipino government is dealing with the corruption problem.
According to the CPI (corruption percentage index), Philippines ranked at 116 positions out of 180 countries by scoring 33. Many experts and analytics claim that the country falls under the category of the top one-third of most countries.
Philippines is one of those countries that has got highest income inequality in the Southeast Asian Countries. According to an estimate, approximately 1% of the country’s elite holds 17% of the national income; whereas, the remaining 50% of the country’s population shares only 14% of the national wealth.
Opportunities for Philippines
Some of the available opportunities in the swot analysis of Philippines are as follows;
As I mentioned earlier, Filipino young people have got great fluency in the English language along with the option of cheap labor due to currency exchange differences. It presents a great opportunity for high-income countries to outsource their work from Filipinos. It would be a win-win situation for both parties; job opportunities for locals and cheap labor for them.
For the growth and development of local businesses and to attract foreign investors, it is significant that the Filipino government should have a flexible taxation policy. It would generate more revenue and attract foreign investors into the country.
Peace Treaty with Militia
The Filipino government has recently made a peace treaty with the local militia, militant, and extremist groups. It is a great step by the Filipino government, but the process of peace talks is very slow.
Threats to Philippines
Some of the potential threats in the swot analysis of Philippines are as follows;
Low Tax Collection
Taxes are the major source of revenue for the economy of any country. The tax collection performance of various Filipino departments is very slow. However, it is further jeopardizing the growth and performance of the country.
Various extremist groups engage in bombing, kidnapping, and other terrorist activities. Security is the top priority for the growth of businesses, and it is the very first thing that businesses look for. A poor security system would push foreign investors away.
Dispute with China
Philippines has got a conflicting relationship with the Chinese government over some areas of the South China Sea. It is not good to have a conflict with the world’s strongest economy.
Conclusion: Philippines SWOT Analysis
After an in-depth study of the swot analysis of Philippines; we have realized Filipino is a growing country with a lot of young potential. If you are learning and analyzing Philippines, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.