Philippines Business Opportunities 2024: Top 6 High-Growth Sectors to Watch

Among all the rapidly growing ASEAN economies, the Philippines stands out as a market full of potential in 2024.

While the overall GDP growth forecast for Southeast Asia is an impressive 4.6%, the Philippines is expected to outpace the region with a projected growth rate of 6.0% – demonstrating robust economic strength.

Reference: JETRO

With this kind of economic momentum, it’s no surprise that more global businesses are turning their attention to the Philippines as a key market for expansion.

In this article, our team at The Digital X – with over 18 years of expertise in global digital marketing and international expansion – will break down the top business opportunities in the Philippines and how your company can strategically enter this growing market.

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Why Business in the Philippines Is Gaining Attention

There are five key reasons why the Philippines is emerging as a highly attractive destination for business expansion today.

A Closer Look at Why the Philippines Is Attracting Business Investment

1. Top-Tier Growth in Population and GDP Among ASEAN Nations

The Philippines is experiencing remarkable development, with some of the fastest-growing population and GDP rates in ASEAN.

More than 60% of the population falls within the working-age group (15–64), a key demographic for sustained economic growth. This is expected to reach 66.3% by 2030 and 67% by 2040.

Reference: METI

With consistently strong GDP growth projections, the Philippines offers an ideal environment for business expansion.

2. A Strong Japan-Friendly Relationship in Both Business and Culture

The Philippines is widely regarded as one of the most Japan-friendly countries in Asia, fostering deep connections on multiple levels:

• Government relations through Official Development Assistance (ODA)

• Trade partnerships, with Japan ranking second only to China

• Labor ties, through Japan’s Technical Intern Training Program

• Cultural affinity, thanks to the popularity of Japanese anime, manga, and cuisine

This cultural and diplomatic affinity translates into a favorable environment for Japanese companies looking to expand overseas.

3. English as an Official Language Supports Smooth Business Communication

Language is a major consideration in international business. In the Philippines, English is an official language — a legacy of American governance.

Over 90% of the population speaks English, eliminating common communication barriers and simplifying everything from negotiation to marketing execution.

4. Business-Friendly Economic Zones and Free Trade Areas

Another reason the Philippines is attractive to foreign investors is the presence of special economic zones (SEZs) and free trade areas that offer incentives for international businesses. These include tax breaks, simplified customs processes, and relaxed regulations designed to promote foreign investment and economic activity.

As you can see, special economic zones and free trade areas offer the above benefits, enabling businesses to operate smoothly and efficiently.

Wages in the Philippines Are Relatively Low Compared to Other ASEAN Countries

Wage levels are directly linked to business profitability, so understanding this in advance is essential.

Reference: EOS Global Expansion

As shown above, the average monthly salary in the Philippines is approximately USD 400–800, which is significantly lower than Malaysia’s, and far lower than Singapore’s.

With wages expected to gradually rise alongside economic growth, now is the ideal time to enter the Philippine market.

Top 6 Business Opportunities in the Philippines in 2024

Now that we’ve outlined why the Philippine market is worth exploring, let’s dive into six high-potential business sectors that are gaining traction in the region:

• Japanese Language Education

• Japanese Culture-Related Businesses

• Japanese Cuisine

• Real Estate

• English-Speaking Talent

• IT & BPO Services

1. Japanese Language Education

Demand for Japanese language learning in the Philippines is on the rise due to:

• The increasing number of Filipino technical trainees in Japan

• Job opportunities with Japanese companies

• Widespread interest in Japanese culture

In fact, the number of Filipino applicants for the JLPT (Japanese Language Proficiency Test) has more than doubled — from 1,581 in 2013 to 3,453 in 2023.

Rather than opening physical classrooms, companies can start cost-effective online Japanese lessons to tap into this growing demand.

Reference: JLPT / JLPT

2. Japanese Culture-Related Businesses

Japanese pop culture — particularly anime and manga — enjoys immense popularity in the Philippines, creating strong business potential.

Examples of businesses already thriving include:

• Anime merchandise shops

• Karaoke bars

However, most of these businesses are concentrated in Metro Manila and Makati. Expanding into underserved provincial cities such as those in Mindanao or the Visayas could offer a strategic first-mover advantage.

3. Japanese Cuisine

Japanese food has moved beyond trend status in the Philippines and is now part of mainstream dining culture.

Ramen shops, sushi bars, and izakayas are prevalent, especially in urban areas. However, Metro Manila is nearing market saturation. Targeting emerging urban centers and provincial regions could yield better returns.

4. Real Estate

Thanks to strong GDP growth and government-driven infrastructure initiatives like Build Build Build (under President Duterte) and Build Better More (under President Marcos Jr.), the Philippines is experiencing a construction boom.

Key opportunities include:

• Investing in condominiums (“condos”)—popular across Southeast Asia

• Starting Airbnb-style short-term rental businesses

5. English-Speaking Talent

The Philippines is known globally for its high level of English proficiency. This creates strong demand for Filipino workers in:

• English tutoring and e-learning

• Hospitality and inbound tourism

• BPO (Business Process Outsourcing)

As such, launching recruitment agencies or staffing services that dispatch English-speaking talent to Japanese or global clients presents a valuable opportunity.

6. IT and BPO Services

Although the pandemic exposed weaknesses in internet infrastructure, recent investments have improved conditions rapidly.

Coupled with a large Gen Z workforce and increased AI adoption, the Philippines is bouncing back as a competitive tech hub.

Two particularly promising sectors:

• BPO for global back-office operations

• AI-driven software and systems development using local tech talent

Key Considerations for Doing Business in the Philippines

While the Philippines presents compelling business opportunities, there are two critical challenges that businesses must be aware of:

• Lengthy and Complex Work Visa Process

• Underdeveloped Infrastructure in Some Areas

Below is a breakdown of each.

1. Work Visa Acquisition Is Time-Consuming and Bureaucratic

To operate a business in the Philippines, foreign nationals are required to obtain the following documents:

• Employment Visa

• Alien Employment Permit (AEP)

• Alien Certificate of Registration (ACR I-Card)

The Employment Visa must first be applied for at a Philippine embassy as a business visa and then processed through the Bureau of Immigration, which typically includes an in-person interview with an immigration officer. Preparation for this interview is essential.

In addition, both the AEP and ACR I-Card involve complex documentation and procedures. To streamline the process and reduce administrative burden, it is advisable to work with a local legal firm or a Japanese support agency specializing in Philippine market entry.

2. Infrastructure Remains Underdeveloped in Certain Regions

Despite significant improvements through the Duterte administration’s Build, Build, Build initiative and President Marcos Jr.’s Build Better More program, infrastructure challenges persist.

This is partly due to the country’s geographical nature — it consists of over 7,000 islands — making nationwide infrastructure development complex and uneven.

The most pressing issue remains the internet infrastructure, which is especially critical for IT-related businesses.

If you plan to operate in tech, BPO, or digital services, it is crucial to conduct due diligence on the local internet reliability in your target location before launch.

Conclusion

The Philippines continues to demonstrate strong growth in both population and GDP, offering immense business opportunities for Japanese companies looking to expand internationally.

By leveraging the six business sectors introduced in this article, you can tap into markets and strategies that would be difficult to realize within Japan.

If you’re facing challenges with market research, localization, or developing an entry strategy in the Philippines, The Digital X is here to support you.

With over 18 years of experience in global digital marketing, we provide localized insights and tailor-made strategies to help your business succeed in the Southeast Asian market.

If you’re considering launching or expanding your business in the Philippines, feel free to reach out to us for a consultation.