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It is prevalent among Filipinos, and it has eventually become part of their culture. Keep in mind, however, not all Filipinos follow "Filipino time" nor is it applied to every occasion. Filipinos often follow "Filipino time" when going to parties or meeting up with friends. They actually observe punctuality when attending classes, going to work, attending meetings, etc.


The real reason behind it is unknown, but there are many theories and factors that may have caused it.


One theory is that they inherited this from the Spaniards when they were colonized for more than 300 years. It was told that whenever Spanish royalty would go to a gathering, they would always enter last. Thus, Filipinos followed suit to get a feeling of importance.


Another theory would be that traffic and travel times are invariable. The number one excuse a Filipino would give you if he/she arrives late would be "traffic". Traffic is really bad in urban cities like Manila.


Not having a standard time is also another possible cause behind "Filipino time". It is quite rare to find 3 clocks with the same time in the Philippines -- there's usually a 5-10 minute difference.


There are also other theories such as Filipinos being quite shy when going to gatherings that they don't want to be seen as overly eager; or their easygoing nature which switches off their sense of time and give them the mentality that their friends/colleagues will understand/accept.



This article has lots of insight as well:

http://www.suite101.com/article.cfm/filipino_american_lifestyle/101594

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