WHEN a country's gross domestic product (GDP) rises above US$1,000 per head a year, its consumer market usually takes off.
The Jardines group says it has seen this happen elsewhere in the region, and that is why it is now piling money into the Philippines in a big way.
Car sales, for instance, have doubled over the past three years, while spending on consumer durables is growing 25 per cent per annum, Jardine Matheson Group country chairman Aloysius Colayco said.
'A few years ago, Jardines came to the conclusion that the Philippines was going to stage an economic turnaround,' Mr Colayco said.
'It noted that political stability had returned and the government was taking steps to liberate the economy, lowering tariffs and breaking up the old monopolies.
'It is now one of the open economies in the region.' This has prompted a rush of inward investment by Philippine businessmen overseas and fresh capital from foreign firms. To date, the Jardines group and First Pacific Co have been leading the Hong Kong charge.
The total investment of Jardine subsidiaries and associated companies in the Philippines totals about 15 billion pesos (about HK$4.39 billion), with a combined annual turnover of 6.9 billion pesos. Its investment is double what it was 10 years ago and is set to leap again.