Philippines to become largest ASEAN market

A new report revealed that Philippines is set to surpass Singapore as the biggest entertainment market in the region.

Philippines.- Morgan Stanley has revealed that Philippines is on track to become the largest entertainment industry of the Association of Southeast Asian Nations, as it’s set to surpass Singapore by 2019.

The brokerage confirmed on Monday that the Asian country has favorable policies, like proxy betting, and strong tourism to drive foreigners’ revenue. “Local spending is backed by a strong local economy,” said Morgan Stanley, as AGBrief reported. As Okada Manila will add more than US$1.2 billion of gross gaming revenue (GGR) to the Philippines’ market by 2019, the local market is set to hit US$5 billion in 2020, which will also leave Singapore in second place.

As the brokerage commented the risks are related to new regulations, as well as muted EBITDA growth during the second half of 2017 and 2018. Moreover, Morgan Stanley believes that Bloomberry is well positioned as it has a stronger balance sheet and cash flows with potential dividends, as well as a larger sandbank for future expansion.