Future Of The Philippines...

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Beachboy
Posted
Posted (edited)
It might surprise you to know that wages in the Philippines are twice has great as in China, 5 times higher than Viet Nam and Thailand.

Thats a shocker any reference info on this ? I know people who want to move there factorys from China here because the cost of labour is double in China . China is not a 3rd world country

Hi Cebu ... I should've been more clear. I was referring to the average minimum daily wage. This is a link that gives that info:

http://thepinoy.net/...ighest-in-asia/ China, of course, is not a 3rd world country but neither is it a developed country like Japan or Korea. It has a glittering modern sector but it also has 400 million people living on less than $2 a day. The challenge for China is to bring those 400 million into the their modern economy. I've read about factory owners wanting to move from coastal China to the Philippines ... but I'm guessing the problem in China is labor shortage rather than labor cost. The industrial cities in China are short of labor .. plenty of surplus workers in the Phils. This would be a good thing for the Philippines .. anyway should be an interesting future.

Edited by Beachboy
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MikeB
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Posted
It might surprise you to know that wages in the Philippines are twice has great as in China, 5 times higher than Viet Nam and Thailand.

Thats a shocker any reference info on this ? I know people who want to move there factorys from China here because the cost of labour is double in China . China is not a 3rd world country

Hi Cebu ... I should've been more clear. I was referring to the average minimum daily wage. This is a link that gives that info:

http://thepinoy.net/...ighest-in-asia/ China, of course, is not a 3rd world country but neither is it a developed country like Japan or Korea. It has a glittering modern sector but it also has 400 million people living on less than $2 a day. The challenge for China is to bring those 400 million into the their modern economy. I've read about factory owners wanting to move from coastal China to the Philippines ... but I'm guessing the problem in China is labor shortage rather than labor cost. The industrial cities in China are short of labor .. plenty of surplus workers in the Phils. This would be a good thing for the Philippines .. anyway should be an interesting future.

That article has me shaking my head, it appears to be citing data from ECOP (Employers Confederation of the Philippines) that the minimum daily wage in Metro Manila is ~$10 a day and comparing that to avg minimum daily salaries of the countries of Viet Nam, Cambodia, Indonesia, Thailand, and China. I don't know if the Manila figure is accurate but wages are generally much higher there then the rest of the country of the Philippines. I can't find any reliable data for avg or minimum daily salaries but I don't believe the average Filipino earns anywhere near that any more then I believe the govt statistic of 7-8%% unemployment. There's an applicable Mark Twain quote about statistics that someone cited here recently.

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Jack Peterson
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Posted
It might surprise you to know that wages in the Philippines are twice has great as in China, 5 times higher than Viet Nam and Thailand.

That's a shocker any reference info on this ? I know people who want to move there factories from China here because the cost of labour is double in China . China is not a 3rd world country

Hi Cebu ... I should've been more clear. I was referring to the average minimum daily wage. This is a link that gives that info:

http://thepinoy.net/...ighest-in-asia/ China, of course, is not a 3rd world country but neither is it a developed country like Japan or Korea. It has a glittering modern sector but it also has 400 million people living on less than $2 a day. The challenge for China is to bring those 400 million into the their modern economy. I've read about factory owners wanting to move from coastal China to the Philippines ... but I'm guessing the problem in China is labor shortage rather than labor cost. The industrial cities in China are short of labor .. plenty of surplus workers in the Phils. This would be a good thing for the Philippines .. anyway should be an interesting future.

That article has me shaking my head, it appears to be citing data from ECOP (Employers Confederation of the Philippines) that the minimum daily wage in Metro Manila is ~$10 a day and comparing that to avg minimum daily salaries of the countries of Viet Nam, Cambodia, Indonesia, Thailand, and China. I don't know if the Manila figure is accurate but wages are generally much higher there then the rest of the country of the Philippines. I can't find any reliable data for avg or minimum daily salaries but I don't believe the average Filipino earns anywhere near that any more then I believe the govt statistic of 7-8%% unemployment. There's an applicable Mark Twain quote about statistics that someone cited here recently.

" There are lies. Damn Lies and Statistics. i believe he said" :tiphat:

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cebu rocks
Posted
Posted

Yeah the stats are way off . Way more people make more than minimum wage in fact a lot more make a good living there is a solid middle class in China (most in the south around 300 million)

My trip there last year was a eye opener . the adverage wage was around 500 US a month for workers from what i was told by employers . China is huge

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i am bob
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China lies about everything so they can use which ever version of the lies is to their advantage the next time!

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  • 2 weeks later...
harryvries
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Excessive fiat money printing by central banks (which has caused the credit crisis starting in the US out of the housing crisis in 2008) might also be the main reason why economies like The Philippines are growing so rapidly. Currently most second and third world countries experience an economic boom (Most African countries and South American countries as example)

The growth of the Chinese economy certainly seems (for a large part) to me caused by central banks and it seems China is heading for at least a bust now, visible in real estate etc.

It might or might not happen in The Philippines but if a bust comes things might go not as good for a while until the next boom starts.

High inflation is often a clear indicator that part of a boom is caused by a loose monetary policy

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wombatphil
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Speaking as an Australian, i have spent an enormous amount of time in the Philippines since 1986 and just my own opinion but i don't think much has changed at all over that time frame. The Aussie Dollar used to buy me 17 pesos and now today it buys 45. Prices go up everywhere not just in the Philippines so everything is relative.Apart from the cost of living there have been advancements made in the country over that time and certainly the population has spiralled but really i think the Philippines will always be the same until one day in the future when you might be paying Yuan for your San Magoo insted of pesos, again just my opinion. The way things are going i think that currency might become the norm in my country too!

I'm with you mate... I reckon he'd better start learning Chinese and learning how to eat with chopsticks maybe.

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Ruddy_Rooster
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Without trying to sound intelligent as world finance really isn't a strong point for me but doesn't Philippines have a huge balancing act to take into consideration, like their OFWs? If the peso gets too strong then millions of overseas jobs could be put into jeopardy along with the $millions or $billions sent home each year?

I m not so worried about the phils improving so much it becomes unnaffordable, more worried that the uk keeps on sliding economically so that whole world becomes unaffordable. I look back in anger at the days of 95 peso to the pound and demand they return. If only ...

I feel your pain there sir, pesos were just like pennies back then but I think that was more a case of us just having it good rather than that being the norm.

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Papa Carl
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Posted

I can remember when 1 pound was 108 pesos! now at 67 today, and that was not that long ago.

In regards to a growing middle class here in the Philippines, as I have said before it is the greatest driver of prosperity a country can have. A growing middle class is what Singapore and Malaysia as strong as they are today. Back in the days when the Philippines was called the Pearl of the Orient, Singapore and Malaysia were not considered to be competition.

The Call Centre/ BPO, KPO, LPO etc etc etc. industry is what is driving a narrowing of the have and have nots in the Philippines, even more so than OFW remittance.

The Philippines in number 1 in the world of voice for outsourcing over taking India, and is quickly closing the gap from 2nd to 1st for Non Voice outsourcing. The Philippines has the largest LPO (Legal Process Outsourcing) centre in the world, although as an over all it is still in second place world wide.

The industry is paying higher wages that ever, and with it comes other benefits that will be demanded in the future, from their children and their childrens children. Improved Health Care, Dental Care, legal representation, cheaper air travel, etc etc etc.

The only thing that is keeping the growth from exploding is the same hand full of families that have traditionally held all the money, and of course the politicians who are either a part of or controlled by these hand full of families.

This will change, it may take time, but I see great and wonderful things for the Philippines, and to be honest it is about time. Filipinos have been over looked, and controlled by outsiders for so long that it has almost become a part of their culture, like corruption.

But it will change, and look out world when it does.

Finally the world will get to see the real "Pearl of the Orient"

Just my thoughts all.

Papa Carl

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  • 5 weeks later...
Thomas
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Posted

I m not so worried about the phils improving so much it becomes unnaffordable, more worried that the uk keeps on sliding economically so that whole world becomes unaffordable. I look back in anger at the days of 95 peso to the pound and demand they return. If only ...

You will not see the 95 peso/UK(56p/UD$) exchange rate for at least the next several years,

when the 1st world(EU&USA ) gets their economy back in shape & if the RP loses its current performance then would you see anythning close to what it was

Yes. But I doubt EU and USA can keep the living standard, because in the long run things need to be produced there. A lot of low education demand production jobs have allready gone to low cost regions as Mexico, Eastern Europe and Asia. I believe within production jobs, EU and USA would be lucky if manage to keep even the high education jobs, because countries as China and India "mass produce" engineers and such, although China has the big disadvantage not having the habbits letting people think free, which is needed for creative developing.

And people get older and older in average, needing retirement pay until higher age. In Sweden we have a high standard retirement age already (67) and the prime minister talked about need of raising it to 74 or so, so a biger part of the population are in working age. But what's the need of that when it's many unemployed already, if can't make them jobs?... :)

So not sure there will be money enough for our future retirement pays from EU/USA... :unsure:

President Obama talked recently about adding 1 million (?) jobs, but said nothing about how. The only chance I can see reaching that would be puting up high protection custom fees. If USA do it, then I suppose EU would do it too (against USA). Result: Add jobs, but if the salaries don't go down MUCH, then would the prises of products go up much, making people not affording them, ending up with LESS store jobs needed, so it would be many unemployed anyway.

I DON'T expect such drastic changes suddenly, but in the long run I expect the rich countries has no chance stay up at nowadays level.

Then the question is if the Philippines manage to get many of such jobs.

Taking the figueres just out of my head, but something like this:

In countries as The Philippines has the economic development been much better than in EU and USA.

/The currency value change have already been talked about.

/Not sure how much can be seen in the stock market change of the economic development, IF it's manipulated by rich Filipin families, but the development has been MUCH better in the Philippines. 2006-2010 up around 20 % in average PER YEAR!!! 2008 minus 40 %, but plus much all the other years, as most 63 %. Not nice average in the rich countries.

/Inflation has been around 5 % in the Philippines in average in 10 years, while I guess it has been around 2 % in EU. (I have no idea about EU, but I guess it's rather close to Sweden.) But while the Gross Domestic Product (or what you call it in English) has raised just a litle, even regressed some times in EU/USA, it has gone up around 7.5 % in average in the Philippines.

So perhaps better try to get a piece of the Filipin development :)

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