The Future of Business in Canada: Is This Country a Promising Land?

Despite challenging economic conditions around the world, business and innovation will continue. Leading a company through a downturn to recovery is never an easy task. Still, it is usually much easier to support a fiscally responsible government, a robust and diversified economy, a favorable business climate, and a highly skilled and loyal workforce. 

When the upswing begins, there is probably no better place to be than Canada. Canada’s economic strength is in the diversity and vitality of its natural resource industries, which supply the world with ore, oil and gas, lumber, and other goods.        Rapidly growing high-tech clusters, such as information and communications technology (ICT), biotechnology, nanotechnology, advanced manufacturing, electronics, aeronautics, pharmaceuticals, agro-food, and photonics, have earned a global reputation for pioneering research and discovery. 

Combining this knowledge base with modern transportation/delivery and telecommunications infrastructures and easy access to global supply networks probably makes Canada’s future business climate unbeatable.

The Philippine tourism economy has been heavily hit by the measures implemented to contain the spread of COVID-19. The pandemic has prompted an unprecedented crisis with projections and revised scenarios suggesting that the shock in global tourism could be at 60-80% for the entire of 2020, translating to a loss of approximately 67 million international arrivals or USD 80 billion in exports from tourism, while putting 100 to 120 million direct tourism jobs at risk. While affecting all economies, the Asia-Pacific region has been projected to suffer the highest impact, affecting about 33 million arrivals (United Nations World Tourism Organization [UNWTO], 2020). On top of that, many people decided to immigrate to Canada from Philippines and that further damaged the economy due to the lack of the workforce.

Competitive Business Costs

A key factor attracting many companies is the low cost of doing business in Canada. The country has the lowest payroll taxes. Companies based in Canada have an advantage in the average corporate tax rate of about 4.5 percent compared to companies based in the United States. The federal corporate income tax rate would fall to about 15 percent. 

A host of generous tax credits and other incentives for capital investment, research and development, and workforce training make manufacturing and research and development more affordable than ever before. 

Widespread corporate tax cuts should strengthen Canada’s tax advantages for businesses and enhance the international competitiveness of Canadian firms. As a result, Canada will continue to invest in innovation, science, and technology. 

The government aims to minimize the impact of the recession on the hardest-hit industries, including manufacturing and finance. They have already invested $21 billion in tax breaks for businesses across the country to help them increase productivity and save or create jobs.

Preparing A Future-Ready Working Strategy

As Canada’s industries undergo significant change, they will have to adopt a modern workforce strategy that allows Canadians to thrive in the transition period. 

A modern workforce strategy includes a dynamic system of employment insurance and skills training that helps employers and people adapt and prepare for a rapidly changing labor market – and provides foreign and temporary workers. 

Traditional notions of an educational life cycle that ends after high school should be shattered. Instead, they will do more to encourage lifelong learning and on-the-job training, including through new business-government collaboration. 

A revised employment and skills system should prepare Canada to be more competitive as businesses and government work together to improve productivity.

Working Age Population

There are very few working-age citizens in Canada. There are very few citizens in the 25-44 age group. It means that most of Canada’s population is either too young or too old. 

The problem is that Canada has a universal free health care system. It means that the government must provide for the health care needs of the entire population. However, to be able to do this, the government needs tax revenues. 

People of working age provide the tax revenue. It is the reason that Canada is more than happy to continue allowing immigration in the future. They want foreign workers to start working and paying taxes to the Canadian government. As well, it will allow the Canadian government to meet its social security obligations.

The 25 to 44 age group is also the consumer segment that buys the most goods. This age group primarily buys cars, homes, vacations, and other goods and services. Thus, by inviting immigrants, Canada also aims to give a boost to its domestic economy. 

Without immigrants, significantly fewer people would buy these goods and services. Moreover, if aggregate demand declined, other factors such as employment would also suffer greatly. Immigrants, on the other hand, have driven up housing prices across Canada. 

Some call this a housing bubble. However, the fact remains that it has created wealth for many Canadian citizens, who will live comfortably in retirement thanks to the housing wealth they have created.

The Future Of Immigration

In addition to increasing the number of new immigrants, the IRCC is currently undergoing a significant automation process. 

Applicants will submit most applications online, and further investment in capacity building, development, and digital transformation of Canada’s immigration system is planned. 

One such example is the newly created online portal, which allows new permanent residents to go through the process of getting an entry permit much faster and without an in-person interview.  

As Canada continues to position itself as a leading destination for global talent, automation is expected to reduce waiting times and ensure a seamless immigration process for skilled professionals.

For peace of mind, it is recommended that you first have a detailed consultation with a reputable Canadian immigration consultant to ensure that you are eligible for a visa. 

You can get access to the best Canadian immigration consultants who can anticipate what might go wrong and make recommendations to increase your chances of success. An experienced consultant can make the process of immigrating to Canada much smoother. 

To qualify for permanent residency in Canada, you must have a good score on the Canada PR Points Calculator. It is a points-based system used to assess your profile and determine its place in the Express Entry pool. 

It is used to assess your:

  • Skills
  • Education
  • Language ability
  • Work experience
  • Other factors

To Sum Up

Suppose Canada wants to be on the path to prosperity. In that case, it should capture that momentum and bring that determination and agility to Canadian businesses, governments, and society. 

As governments and businesses across Canada reshape the economy and society, immigrants can prepare for a prosperous future. The goal is to reshape the Canadian economy and society by making them more innovative and sustainable. 

Therefore, it should be necessary to strive for a higher growth rate than the country is currently at, to strive for higher growth and higher productivity. 

However, today, perhaps more than at any other time in the country’s history, society demands that this growth be equitable, promoting higher living standards for all and expanding business opportunities. 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.