Gearing up to be a business catalyst

INSIGHT, connection and advocacy – these are the three pillars of the Philippine Chamber of Commerce in Singapore’s (PhilCham Singapore) mandate of promoting trade, investment and industry growth between Singapore and the Philippines.

Its first year was devoted to building the infrastructure needed “to ensure continuity and sustainability”, said founding president Cristy Mendoza Vicentina, who is also the Philippine National Bank’s region head for Asia and Oceania, and the general manager of PNB Singapore. 

Now, the foundation has been laid for the chamber to hoist those three pillars.

Medardo G Macaraig, the Philippines’ Ambassador to Singapore, said: “We envision PhilCham Singapore serving as an essential catalyst for economic growth, trade promotion and cultural exchange.

“It should play a pivotal role in connecting Philippine businesses with international markets, advocating for favourable business conditions, and fostering mutually beneficial relationships between the Philippines and Singapore.”

Building insights

While PhilCham Singapore’s founding members – all volunteers – spent the first year setting up the chamber’s financial, operating and recruitment processes, they also launched a series of webinars on investments, taxes, franchising, and corporate and labour laws in the Philippines.

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“We aim to be an active, relevant platform and resource for Singapore-based companies who want to do business in the Philippines,” said Tina Di Cicco, chair of events and education at the chamber, and one of its founding members. 

“And this mission stands on strong legs – Singapore is the Philippines’ fifth-largest trading partner globally, and its largest in Asean. We think that speaks volumes of the economic relations between our countries,” she added.

In 2022, Singapore was the Philippines’ top source of investments – based on data from government agencies – with a total of US$2.4 billion in investment commitments. The city-state was also the Philippines’ seventh-largest trading partner last year.

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The chamber aims to deepen these ties by working closely with the Philippine Embassy to share business insights with companies in Singapore, and link local businesses to opportunities in the Philippines.

Connecting businesses to opportunities

Such opportunities abound – particularly in the sectors of tourism and hospitality, financial services, agribusiness and food processing, infrastructure development, and education and training, said Rose Sharon Tordesillas, assistant head of PhilCham Singapore’s membership committee.

For instance, in the area of financial services, players within the Philippines’ rapidly growing financial sector could learn from Singapore’s expertise in banking, fintech, insurance and asset management. The Republic’s financial institutions may find opportunities to expand their operations and services in the Philippines as well, said Tordesillas, who is also country manager at LBC Singapore.

Similarly fruitful partnerships could emerge in the agribusiness sector. The Philippines’ agricultural sector is thriving, while Singapore has advanced proficiency in food processing and distribution. 

Sharing knowledge on value-added processing and the transfer of technology could boost productivity, and enable businesses to better capture growing demand for high-quality agricultural products, said Tordesillas.

An advocate for businesses

Advocacy is the third pillar of the chamber’s work. Di Cicco believes PhilCham Singapore will become a champion of activities and causes that strengthen trade relations between the two nations.

“We aim to be actively involved in building a pro-business environment, and in advocating business and policy issues on behalf of our members,” she said.

Chamber president Vicentina said the top challenges that Philippine businesses face are not unique to them. Singapore’s highly competitive business environment, for instance, is tough for local and foreign companies alike. New entrants often face stiff competition from well-established firms, and struggle to differentiate their products and services to clinch market share.

“Adhering to Singapore’s strict regulatory framework can be a challenge for foreign businesses, including those from the Philippines,” she said. Companies need to navigate tax regulations, employment laws, licensing requirements and other compliance obligations that may differ from those in the Philippines.

Then, there are the perennial issues of Singapore’s high living and business costs – rental, operating and labour expenses, as well as other overheads, can be significantly higher compared to what would be incurred in the Philippines. There is also the challenge of attracting and retaining top talent.

“It is important to conduct thorough research, seek expert advice, and stay updated with the latest developments to address these challenges effectively,” said Vicentina, adding: “Consulting with industry associations, trade offices, or business consultants with expertise in the Singapore market can provide valuable insights or guidance for Philippine businesses.”

Singapore businesses entering the Philippine market may encounter challenges too.

“The Philippine business landscape is governed by numerous regulations, permits and licences at the national, regional and local levels,” noted Vicentina. Hence, local expertise is often needed to ensure compliance with taxation laws, labour regulations and other industry-specific requirements.

Within Singapore, there are several Philippine organisations – such as financial entities and small and medium-sized enterprises – with varying areas of focus, from culture to migrant workers. PhilCham Singapore will serve the trade, investment and industry relationship between the two countries, said Di Cicco.

The chamber intends to continue holding events under its Doing Business series, with the aim of building a larger and stronger business community.

It also plans to facilitate trade missions in areas that are of common interest to both countries. “For example, in aviation and aerospace – where Singapore is the region’s leading player – the Philippines can be a strong partner in the manufacturing value chain,” said Di Cicco, pointing out that SIA Engineering “already has a sophisticated” maintenance, repair and operations setup in the Philippines.

PhilCham Singapore is interested in the development of the startup ecosystem as well.

“Many Philippine-based startups have a presence in Singapore, and we see Singapore startups involved in healthcare, agritech, fintech and digital acceleration in the Philippines,” said Di Cicco, who has co-founded two travel technology companies and leads Avaya Ventures, an advisory focused on travel tech, aviation, and scaling up business in South-east Asia.

The Philippines’ huge and growing consumer economy ought to be attractive to many Singapore-based entities too, she added. “We hope to be a conduit for the economic and commercial success of these businesses.”

An inclusive chamber

The chamber also envisions forming a knowledge source team that can provide support to aspiring entrepreneurs, “to empower a larger population of our society”, said Vicentina.

PhilCham Singapore is wholly volunteer-run at the moment, partly to keep membership fees modest. “We don’t want to be representing only the elite or large, established businesses. We hope to be more inclusive and invite smaller businesses to join us too,” said the president.

The chamber’s founding members are from a tight-knit group in the Filipino business community in Singapore, she shared. In the past, they initiated projects of their own, such as pooling resources to improve corporate social responsibility.

“We see each other on weekends for various activities and sports organised by the (Philippine) Embassy, and other Philippine organisations here... We might be working for competitors in the Philippines, but when you’re overseas, you become close. We’re like a family.”

This spirit of collaboration is what the founders brought to PhilCham Singapore, and what they hope will benefit businesses large and small with links to both countries’ markets.