GERMAN infrastructure, renewable energy (RE), and high-tech manufacturing companies are among the potential investors that a trade delegation currently in Europe is seeking to attract to the Philippines, the Department of Trade and Industry (DTI) said.
In a speech at the Philippine-German Investment Forum on July 3, Trade Secretary Alfredo E. Pascual directed his remarks specifically to infrastructure companies in light of the Philippine government’s push to address the gaps in its infrastructure.
“We enjoin Germany to partner with the Philippines in projects involving the construction of airports, railways, and bridges, all designed to enhance connectivity within our country and with the rest of the world,” Mr. Pascual said.
The forum was attended by representatives from the German Federal Ministry for Economic Affairs and Climate Action State Secretary Udo Philipp, Philippine Ambassador to Germany Irene Susan B. Natividad, Association of German Chambers of Commerce, and Industry Chief Executive of Foreign Trade Volker Treier, as well as representatives from German companies.
Mr. Pascual added that German businesses might find opportunity in the Philippine renewable energy industry, where foreign investors are now allowed to own 100% of their projects, up from the Constitutional limit of 40% previously.
Mr. Pascual also urged German businesses to consider locating high-tech manufacturing operations to the Philippines, including aerospace, automotive, electronic devices, pharmaceuticals, and innovation-focused sectors.
Mr. Pascual also had a separate meeting with German Electronics and Digital Industry Association (ZVEI) President Gunther Kegel on possible collaboration in electronics manufacturing with the Semiconductor and Electronics Industries in the Philippines Foundation, Inc.
The specific businesses being targeted are original design manufacturer, original equipment manufacturer, and electronics manufacturing outsourcing in the Philippines.
“This is in light of the continuing challenges of the lack of skilled labor, the rising cost of production, and the diversification and de-risking aspirations in Germany,” the DTI said.
ZVEI represents over 1,000 companies in Germany employing 879,000 workers, with combined turnover of €200 billion in 2021.
The Philippine Statistics Authority reported that Germany was the top source of foreign investment pledges at P156.96 billion in the first quarter, accounting for 90.9% of the total.
The DTI European Investment Roadshow wrapped up yesterday, July 6. — Revin Mikhael D. Ochave