One of my venture capitalist friends recently called me. “You guys are doing a fantastic job in the Philippines with your bank; you’re absolutely killing it. But it’s time to move on and open up another market.” I was perplexed. Why move when the Philippine economy is red hot? The consumer class is emerging, foreign investment is rolling in, and there’s optimism across the board—a veritable blue ocean. “It’s the Philippines,” he confessed. “You don’t want to depend solely on the Philippines. I just can’t believe that nothing bad will happen; it’s the Philippines.”

Indeed, the economic history of the Philippines is far from straightforward. The 1950s and 1960s saw best-in-class economic growth, with Manila attracting new capital and entrepreneurial opportunity. However, this golden period was fleeting. For the next several decades, the country remained a backwater in Southeast Asia in terms of growth and investment. Indonesia, with its smarter industrial policies, grew at staggering rates, consistently outpacing the Philippines by 1-3% per annum since the 1970s. The Philippines’ mediocre growth was exacerbated by political instability, increasing poverty, and income inequality.

The last decade, however, has brought a glimmer of hope. For the first time in many decades, the Philippines grew faster than Indonesia. Yet, this has done little to change the perception that this is a temporary aberration rather than a reflection of the nation’s economic potential. My firsthand experience with funding Salmon, our neobank for Southeast Asia, shows that attracting investors to the Philippines—despite stellar macroeconomic statistics—remains an uphill struggle, whether in Silicon Valley, Singapore, the Middle East, or other capital hubs.

It is difficult to believe that this beautiful land, endowed with natural resources and some of the world’s kindest and most joyful people, isn’t on a sustained path to the success it truly deserves. Filipinos, with their excellent English skills, are ideally positioned for the global economy. As a tech entrepreneur, it hurts to see luminaries like Tim Cook visit Southeast Asia without stopping in Manila.

True, much needs to be fixed to put the economy on a more sustainable path—energy strategy and electrification infrastructure, for example. This will require years of consistent, relentless execution. Electricity prices, currently 50% above those in neighboring countries, are a significant hindrance. Then there are broader economic risks, such as AI. With around two million people employed in the BPO sector, the majority could be out of jobs within 18-36 months. While this is a global issue, the Philippines must start planning its response now.

Despite these complex economic problems, my experience investing in the Philippines has convinced me that there is a simpler and quicker recipe for success. The Philippines should woo the digital tribe, becoming a haven for digital nomads and professionals—a place where they want to live, work, innovate, and spend.

This transformation doesn’t require massive capital investments. It hinges on political will and simple, swift actions:

1. Drastically Simplify Resident Visas: Make it incredibly easy for employees of reputable tech companies to obtain resident visas. Streamline the process so visas can be granted online within 24 hours, beat Korea and Portugal to it. This initiative would rapidly go viral and talent on the ground in Manila would compound faster than anyone anticipates with all the positive externalities.

2.  Facilitate Opening New Tech Businesses: Drastically simplify the registration and operation of new tech businesses. It should not take 2-3 months. Enable online company registration within 15 (!) minutes, complete with bank accounts and straightforward tax filings, and offer 3-5 year tax breaks. This would draw significant capital and the digital tribe to Manila.

These steps, though straightforward, could catalyze a remarkable transformation.

My journey of establishing a business in the Philippines and securing millions in investments, including from Abu Dhabi’s sovereign wealth fund and the IFC, was peppered with luck. Future entrepreneurs should not have to rely on luck to tap into the Philippines’ full potential.

Let’s make the Philippines’ economy great again, ensuring Manila becomes a must-visit stop on Tim Cook’s next Asian itinerary. It is that simple.

Was published originally on: https://manilastandard.net/spotlight/314471705/entrepreneurs-perspective-how-to-make-the-philippines-the-magnet-for-global-talent.html

Sports and startups — on the surface, these two seem far apart, yet dig a little deeper, you’ll see some fundamental similarities at their core.

As a founder, entrepreneur and avid sports participant, I believe that being an athlete develops a set of skills and personality traits that allow entrepreneurs to reap success in starting their business.

A little background

For the last 25 years I had a full career in investment banking and as an executive in 2022 I left the industry to pursue the opportunity to co-found Salmon, a neobank with a mission to expand financial inclusion in Southeast Asia.

Parallel to business, I have always been fascinated with sports. I played volleyball for nearly 30 years through U16 and U18 national championships and later through college leagues as well as beyond. Volleyball in particular appealed to my love for building and motivating the team, while also being a window for resetting myself, venting off stress and enjoying a fine sense of camaraderie.  

A few years ago, while vacationing in Spain, I discovered Padel, a sport which I discovered could be enjoyed equally by beginners and veteran (mostly tennis) players. The required physical energy and mental strategy turned it into a hobby that I practice 6:00-8:00 am daily alongside with playing in a variety of amateur and ProAm tournaments, including Asia Pacific Padel Toyr. 

Noticing my affinity for padel, my friends and colleagues in business at times ask me, “How do you make time for it when you are heading a new startup with serious growth goals?” And my answer is always the same: Taking time to play sports doesn’t detract from my entrepreneurship — in fact, it adds to it. 

Making you a better entrepreneur

Many of the characteristics required to play sports are beneficial in the business/startup world:

1. Competitiveness: While some people say they’re only playing “for fun,” competition is certainly a significant element when participating in sports. In general, you’re in it to win it. This desire or drive to win, coupled with the perseverance it requires to reach that goal, are crucial for the startup world. Competition is fierce in most industries, so a competitive edge is vital to get ahead.
   
2. Adaptability and mental agility: Sport isn’t only about the physical but also the pyschological. Staying sharp on the playing field can keep you sharp in the office. Sport can train your brain when to swivel and serve during a match which is a transferable skill for the boardroom, while regular exercise releases endorphins which will keep you mentally sharp.
   
3. Discipline: Excelling in sports requires discipline, from training and eating well to understand prioritization, and more. Leading a startup also requires that same discipline and putting in the same hard work over and over again. In both fields, discipline can keep you from getting distracted or downhearted from obstacles you encounter along the way. 
   
4. Social interaction and motivating the team: In sport, there are always other players (teammates or competitors) to take into account. You aren’t the only planet in the solar system — you must consider those in your orbit. In business too, you’re never alone: co-founders, employees, board members, investors, competitors, customers and other stakeholders. Taking other players into consideration on the playing field is great preparation for the necessary interpersonal skills used for building professional relationships.
   
5. Humility: No one wins all the time; not in sports or business. And even if you win once, there are many more matches ahead of you. Therefore, when you approach sports with the right attitude, it can keep you humble. The same is true for business. Staying humble amid losses and wins means you won’t make mistakes borne from overconfidence. You’ll understand that you are in it for the long haul and have much to learn from every step. 

Sharing the Wealth

Many founders stumble upon a “magic” to success that they are loath to share with others. I believe in sharing the wealth. Playing sports is one of my “secrets” to success and I believe other entrepreneurs can benefit greatly from it. 

To those who scoff at the idea of business leaders participating in sports and protest that entrepreneurs cannot afford to waste time, I would counter that they cannot afford not to.