Philippines Secures Investment Pledges from German and American Firms

Photo:Freepik

The Philippines has recently secured approximately US$5 billion in investment pledges from German and American firms, representing significant potential gains for the country in sectors such as healthcare and energy. President Ferdinand Marcos Jr, during his three-day working visit to Germany, finalized investment pledges totaling US$4 billion from German companies. This follows commitments of over US$1 billion from American firms.

Among the notable investments, private equity firm KKR & Co has pledged US$400 million for telecoms tower operations and expansion in the Philippines. Ally Power, a startup, announced a US$400 million deal with power utility Manila Electric Co to construct a hydrogen and electric refueling station. Additionally, Microsoft is collaborating with the Philippine central bank and ministries to leverage AI products to enhance productivity.

In Germany, the Philippines inked eight investment agreements encompassing solar cell manufacturing, automotive modification, and military-grade armoured personnel carriers production. Other agreements include the potential development of a hospital training center, innovation hub, digital healthcare partnership, and farmland rehabilitation.

Despite historic challenges in attracting foreign investment due to issues like red tape, weak infrastructure, and policy uncertainty, these recent investment pledges signify a positive step forward for the Philippines. In 2022, the country attracted US$12 billion in foreign direct investments, 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.