Risks Now that Philippines is Becoming a Business Hub
The Philippines is becoming a major hub for production and new business ventures in Asia. Although it has been known as one of the main destinations in the world for the service sector, many experts suggest that it will now become Southeast Asia’s production hub once the regional integration takes place. The ASEAN Community (Association of Southeast Asian Nations) aims the creation of a single regional market for goods and services, which may benefit the local economy by creating new business in the Philippines. But, opportunity is not without risk, especially in the Philippines.
There are many expectations for business people and also for the rest of the citizens in the Philippines, but investigators in Manila recommend to take this new opportunity with caution. Many expect that investors will view the Philippines as a gateway to the rest of the region as well as to ASEAN’s six free trade partners in East Asia. Some think that the country’s young demographics (young workforce) could work in its favor as it lures back factories that will leave China and go to ASEAN for opportunities. Other benefits are the population’s English proficiency, the access to credit and its location.
But not everything is good news for business people eager for the new opportunities that the integration will bring. The Philippines has also been known for being a country with high rates of corruption and fraud. There are many investment scams and bad hires here.
The following are some of the precautions that need to be considered before entering any business deal in the Philippines. When in doubt, consult a reputable private investigator.
With great opportunities comes great risk
There is no doubt that new business opportunities will emerge for the whole region, but many of those will be too good to be true. If you are dealing with a new business in the Philippines, mitigate your risks by hiring a private investigation from the first stages. A company background check investigation can make all the difference and it will ensure the process goes through with transparency.
Due diligence in the Philippines is essential to avoid being a victim of fraud or scam. Verifying the facts is the first step into a healthy business relationship. When you are going to enter into a new business deal, you will need information that will later be used by professional private investigators in the Philippines to conduct the investigation. Basic data like legal registration (in the case of a company) and full names and references of its main representatives or owners is extremely important. Get as much information about the operations of the company, where is it located, who are their clients and providers, etc. The more information you have in your hands, the more things professional private investigators can verify and the more you can protect your business from fraud. You need a local and trained investigator in the Philippines who speaks the same language to verify facilities, reputation, business filings, check references, verify ownership and operations, and screen the case for fraud. Expert investigators with a proven track record can help you make a safe and informed decision.
There are tools available to avoid being a victim of business fraud in the Philippines. Businesses and investors who ignore the risk, or who pass on a due diligence service because of the cost, often end up spending more in the long run through bad hires, bad investments, etc. In the event of fraud or scam, the losses can be staggering, so proper verification up front is key to success.
Contact us if you need help verifying any individual or company.
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