13-3-2024 (MANILA) The Philippines has clinched approximately US$5 billion in investment pledges from German and American companies this week, spanning key sectors like healthcare and energy. These commitments mark significant victories for the country as it competes with its regional counterparts for foreign capital.
President Ferdinand Marcos Jr, currently on a three-day working visit in Germany, secured investment pledges worth US$4 billion from German companies, according to the trade ministry’s announcement on Wednesday (Mar 13). This follows over US$1 billion in commitments from American firms.
US Commerce Secretary Gina Raimondo wrapped up a two-day trade mission to the Philippines on Tuesday, accompanied by executives from 22 companies, including United Airlines, Alphabet’s Google, Visa, and Microsoft.
The Philippines has historically grappled with attracting foreign investments due to challenges such as bureaucratic hurdles, inadequate infrastructure, and policy ambiguities. Consequently, it has lost out to other Southeast Asian nations offering better incentives and lower operational expenses.
Private equity firm KKR & Co has committed to invest US$400 million in telecoms tower operations and expansion in the Philippines, as confirmed by the US Department of Commerce on Wednesday.
Meanwhile, Ally Power, a startup, has sealed a US$400 million deal with power utility Manila Electric Co to construct a hydrogen and electric refuelling station.
Microsoft is collaborating with the Philippine central bank and the ministries of budget and trade to explore how its AI products can enhance productivity, as highlighted by the commerce department.
In Germany, the Philippines inked eight investment agreements encompassing solar cell manufacturing, automotive modifications, and the production of military-grade armoured personnel carriers.
Among other ventures, potential projects include the establishment of a hospital training centre, an innovation hub, digital healthcare partnerships, and farmland rehabilitation.
Despite these strides, the Philippines attracted US$12 billion in foreign direct investments in 2022, trailing behind Vietnam’s US$15.7 billion and Indonesia’s US$21.1 billion, according to data from the Association of Southeast Asian Nations website.
