Dyson’s investment – what will it mean for Singapore and the Philippines?
It has been an immensely challenging year for the Philippines, with the coronavirus pandemic and a particularly damaging typhoon season combining to cause immense socio-economic panic.
Three recent typhoons have proved to be particularly devastating, killing in excess of 100 people in the region while causing damage to farms and infrastructure that’s thought to be worth an estimated 25 billion pesos ($518.5 million).
However, the Philippines received some excellent news this week, with the region set to be part of a $3.67 billion investment by the Dyson brand. We’ll explore this further below, while asking precisely what this means for the Philippines and Singapore.
A look at Dyson’s investment in the Philippines, Singapore in the UK
Dyson’s pledged $3.67 billion investment will be diverted to new technologies and the development of an enhanced product range, with the money set to be spent over the course of the next five years.
More specifically, this investment will allow the company to double the number of products that it sells, while also enabling the brand to expand into a raft of new and lucrative international markets.
Primarily, the investment will be focused in Singapore, the UK and the Philippines, which remain key to Dyson’s business strategy and will benefit considerably from the rollout of new and emerging technologies.
The Philippines and Singapore will arguably be the biggest recipients of this investment, with the latter (which is now home to Dyson’s headquarter) set to see a new university research program launched alongside an advanced manufacturing hub.
As for the Philippines, the company will also build a dedicated software hub at Alabang, which will build on Dyson’s existing engineering team in the region and create a further 400 jobs within the economy.
Currently, this tech hub in the Philippines employs 600 people and manufactures 13 million Dyson digital motors each year, and there’s no doubt that the latest development will provide some relief during difficult economic times.
How will this boost these regions?
Both the Philippines and Singapore have endured torrid years, with revised growth forecasts of -9.5% and -6.5% respectively highlighting the challenges facing both economies going forward.
However, the outlook for 2021 is far brighter, with respective growth forecasts of up to 7.5% (for the Philippines) and 6% (for Singapore) having been boosted considerably by Dyson’s increased investment commitment.
Such growth would represent a robust rebound over the next 12 months, while in the short-term investors can also console themselves with the surprisingly strong performance of the Philippines peso.
Certainly, the peso is expected to record a third consecutive year of gains in 2021 as the economy recovers, as imports are curbed in the short-term and remittances benefit from a sustained rebound.
The peso is certainly rising against major currencies such as the US Dollar, so there’s clearly light at the end of the tunnel for both Philippines’ entrepreneurs and investors alike.
