Philippines, the island nation in Southeast Asia, has invited the Indian pharma and biotechnology companies to invest in the country’s special economic zones (SEZs) and has even proposed to offer full incentives for the investing firms.
In a recently concluded 11th joint meeting between India and Philippines Joint Working Group on Trade and Investment (JWGTI), the Philippine authorities have presented a proposal to encourage Indian pharmaceutical companies to locate in Philippine economic zones and to avail their full incentives while conducting business.
The major suggested business areas for investment in the country include research and development and production of oncology drugs, intravenous (IV) and oral antibiotics, topical and eye medicines, vaccines and other high-priced pharmaceuticals.
With the rising demand for healthcare among the population, the Philippines markets offer huge potential for the growth of affordable quality generic products. During 2010 the total Philippine pharma market was valued at PhP 120 billion and it is growing at around three to four per cent annually.
To enhance the growth of pharmaceutical markets in the country the Philippine government is improving patient access to medicines by making them more affordable and thus attracting investments from Indian firms who are renowned globally for their low cost quality medicines.
As per the proposal set by the Philippines authorities, the investing firms are allowed to export 70 per cent of their production from their units to markets of South East Asia and Asia pacific markets, while the rest 30 per cent should cater to the needs of the domestic markets.
With this, the Philippines government is planning to meet both ends of attracting large scale industrial investment as well as meeting its domestic needs of its healthcare sector.
Earlier last year India too had explored to increase its exports to the South East Asian regions and had even sent business delegations to Vietnam, Philippines, Taiwan and Singapore. Among the leading importers of pharmaceutical products from India, Philippines ranks second while Vietnam is leading importer from India.
During the year 2009-10, the Indian pharma exports to Philippines was pegged at Rs.332 crore, this was again improved to Rs.389 crore in 2010-11. The year 2011-12 had seen Indian pharma exports a whooping jump of Rs.1200 crore. As these statistics indicate an encouraging scenario for the growth of Indian medicinal products in the South East Asian island nation, the new investment proposal by the Philippines government is definitely a welcome gesture for the Indian firms to further enhance their growth opportunities.