Why Singapore Companies Are Exploring the Philippine Market in 2025

Singapore company expanding into Philippine market

Why Singapore Companies Are Exploring the Philippine Market in 2025

The Philippines is becoming a strategic expansion point for Singapore companies eyeing growth in Southeast Asia. With a tech-savvy, English-speaking population and a strong service-led economy, it offers a familiar and scalable entry point for regional operations.

As 2025 brings tighter competition across ASEAN, the Philippines stands out with its low barriers to entry, rapidly growing digital consumer base, and alignment with cloud-first, mobile-ready business models. From fintech and e-commerce to shared services and outsourcing, Singapore companies are turning to the Philippines for long-term, cross-border opportunities.

A Young, Digital-First Consumer Base

With over 113 million people and a median age under 30, the Philippines is one of Southeast Asia’s youngest and most connected markets. This generation is fluent in mobile-first behaviour and engages daily with digital platforms, creating a fertile ground for tech-enabled businesses. Singapore companies entering the market can tap into:

High internet and smartphone usage, especially among urban Gen Z and millennials
76%+ of the population active on social media, making platforms like Facebook, TikTok, and Instagram powerful marketing tools
Widespread adoption of e-wallets such as GCash and Maya, fuelling contactless payments and digital banking
A rising middle class with growing spending power, particularly in online retail and entertainment
Rapid growth in mobile-first services, including food delivery, video streaming, ride-hailing, and fintech apps

The Philippine consumer is ready to try, adopt, and scale with digital products—if brands meet them where they are.

Business Culture That Aligns With Singapore

The Philippines offers a business environment that feels familiar to Singapore-based companies. This is thanks to shared use of English, similar workplace systems, and a service-driven economy that understands global expectations.

When expanding into the Philippines, Singapore SMEs benefit from:

English as an official business language, used in contracts, reports, and day-to-day operations

Widespread use of tools like Google Workspace, Zoom, and Slack, enabling easy cross-border collaboration

A strong outsourcing industry, with teams experienced in working with international clients and partners

Talent that’s adaptable to global standards, making it easier to scale remote, hybrid, or offshore roles

Geographic proximity to Singapore, allowing for quick trips, in-person training, and regional team alignment

This cultural compatibility makes it easier for businesses to onboard talent, integrate systems, and maintain service quality across borders.

Entry methods for Singapore businesses in the Philippines

Entry Costs Are Lower Than Regional Peers

For Singapore SMEs exploring new markets, the Philippines offers one of the most cost-efficient setups in Southeast Asia. Lower operating costs make it an attractive option for businesses that want to validate demand before committing to larger investments.

Key cost advantages include:

More affordable office rentals compared to Indonesia, Vietnam, or Thailand

Competitive labour costs for administrative, marketing, and support functions

No minimum paid-up capital required for setting up a representative office

Flexible options for incorporation, including subsidiary, branch, or rep office structures

Eligibility for tax holidays and incentives through government-approved economic zones and priority sectors

This flexibility allows SMEs to scale at their own pace, without the high overhead typically seen in other regional markets.

Strong Logistics and Operational Infrastructure

The Philippines offers a well-established foundation for both physical logistics and digital business operations, giving Singapore companies the flexibility to enter, test, or scale quickly.

Operational strengths that support expansion include:

A wide network of third-party logistics (3PL) providers for warehousing, fulfilment, and last-mile delivery

Secure and scalable payment systems that support e-commerce checkouts, subscriptions, and digital wallets

Established business districts in key cities like Manila, Cebu, and Davao, with access to infrastructure and talent

A BPO-trained workforce, experienced in customer service, CRM platforms, and remote client support

An abundance of remote-ready professionals, accustomed to multi-region workflows, project management tools, and cross-border collaboration

These resources allow SMEs to launch with confidence and adapt their operations based on real-time market feedback.

A Market That Welcomes Innovation and Expertise

As the Philippines continues its push toward digital transformation, there’s growing demand for partners with regional experience and ready-to-deploy solutions. Singapore businesses—known for efficient systems and scalable tech—are in a strong position to fill this gap.

High-impact entry points for Singapore firms include:

Fintech and digital payments, especially tools that improve transaction speed, security, or financial inclusion

SaaS platforms for areas like HR, compliance tracking, employee onboarding, and financial reporting

Cloud-based solutions tailored for e-commerce, logistics, and customer service operations

Advisory services covering cross-border tax strategy, structuring, and local regulatory compliance

Digital transformation consulting for SMEs and corporates transitioning to cloud-based workflows and analytics tools

Singapore’s track record in these areas offers immediate value to Philippine businesses looking to modernise and scale.

Why More Singapore Businesses Are Betting on the Philippines

The Philippines isn’t just a low-cost labour market — it’s a high-potential, consumer-driven economy with scalable infrastructure, English-language compatibility, and growing demand for cross-border expertise.

Singapore SMEs exploring expansion in 2025 will find the Philippines to be strategically aligned, cost-effective, and ready for innovation. From market testing to full-scale operations, the environment supports growth without high risk.

With the right partners, structure, and digital tools in place, Singapore businesses can build a regional presence—starting in the Philippines.

FREQUENTLY ASKED QUESTIONS

What’s the easiest way to test the Philippine market from Singapore?

Start with a representative office, distributor arrangement, or run local campaigns through a partner. These low-commitment options are ideal for market validation. The MRA Grant may cover some of these early-stage activities.

Is English used in legal and business settings in the Philippines?

Yes, English is one of the country’s official languages. It is used in contracts, government filings, and workplace communications, making local operations easier for foreign entities.

What types of Singapore businesses are a good fit for PH expansion?

Firms in fintech, SaaS, e-commerce, consulting, and cloud services often gain traction quickly. These industries align well with the country’s growing digital demand and service-driven economy.

Can I outsource payroll and HR when expanding into the Philippines?

Yes. Partnering with a firm like Acc Pro Singapore ensures compliance with local regulations and helps manage employee onboarding, government contributions, and statutory reporting.

Does the MRA Grant cover incorporation costs?

No. The MRA Grant supports market entry efforts such as marketing, lead generation, and partner search—but does not subsidise incorporation, licensing, or long-term operating expenses.

Expanding to the Philippines with Acc Pro (Singapore)

Acc Pro (Singapore) helps Singapore companies enter the Philippine market confidently, compliantly, and cost-effectively.

We are an Enterprise Singapore-recognised Market Readiness Assistance grant consultant with deep experience supporting digital-first SMEs and regional operations.

Our services include:

Market entry advisory and cross-border structuring

Incorporation coordination and local business setup

Tax planning, cloud accounting, and multi-jurisdiction reporting

Payroll and HR outsourcing to ensure local compliance

From initial scoping to operational execution, we guide SMEs to make smart, scalable decisions at every stage of their expansion.

Let’s build your Philippines expansion roadmap together.

Published: 19 June 2025

Jessica Moreno

Jessica Moreno is a Marketing and Partnership Team Lead at Acc Pro (Sinigapore). She works with growing businesses across Southeast Asia and the UK to craft SEO-driven content that fuels digital transformation. Her work focuses on bridging strategy, storytelling, and cloud technology to help brands scale smarter in today’s online economy.