With Donald Trump being elected the new U.S. President and the United Kingdom all set to leave the European Union, there is now an air of political certainty.
Political stability is a must for business, as policy changes can affect long-term plans. Take Toyota, for instance. It embarked on building a new plant in Mexico, only to be told by Trump that cars exported to the United States would be taxed 20% extra.
Their Baja plant is not something that can be cancelled easily. They redesigned the Corolla, the world’s most popular car, with the intention of manufacturing it at Mexico. Their Canadian plant is to cease production of the existing Corolla and focus on making more high-value automobiles.
Too many wheels turning for Toyota to turn the clock back.
As a result of these changes in the business climate, all contracts are more likely to be short-term than long-term partnerships. So foreign companies are unlikely to make huge investments in the Philippines. But this is also an opportunity for Filipino entrepreneurs to start their own contact centers and scout for such short-term contracts worldwide.
With the Philippines’ cost advantage and its vast talent pool of highly-qualified, English-speaking workers, business will never be found wanting.