PRESIDENT Ferdinand Marcos Jr. will bring home $4 billion, or P220 billion worth of investment deals from his visit to Germany.
On Tuesday, March 12, 2024, the Department of Trade and Industry held the Philippine-Germany business forum in Berlin where eight different types of agreements, three letters of intent (LOI) from different German companies, two memoranda of agreement (MOA), and three memoranda of understanding (MOU), covering various sectors, were signed.
The LOIs were for the development of a partner hospital to become a training center to support the training needs of other lower tier hospitals, Innovation Think Tank (ITT) hub and “spoke model” to address the strategic target of an inclusive innovation ecosystem in the Philippines, and for the strategic and digital partnership in healthcare with the Department of Health (DOH) with the goal of revolutionizing healthcare in the Philippines, ensuring safety, quality, accessibility and affordability.
Through a memorandum of agreement the Philippine government and a German company will embark into a Public Private Partnership to rehabilitate, reclaim, and recultivate degraded farm lands in the Philippines, while another MOA is aimed at expanding potential collaborations in mobility solutions, software services, manufacturing, factory automation, logistics services, energy, security, safety systems for buildings, consumer appliances, and healthcare.
Marcos also witnessed the signing of MOU for the establishment of fully integrated solar cell manufacturing facility in the country,
manufacturing facility that will modify automobiles into high-end 1 of 1 version and armor protected cars, as well as manufacture military grade armored personnel carriers for the Asian market and data centers that will host a digital insurance platform that will serve the Philippines and Asean region as the group’s main expansion outside of the European Union.
In his speech, Marcos expressed gratitude to the German business leaders for participating in the event.
He touted the Philippines as the “best choice for investments,” as he reiterated his administration’s commitment to ensure efficient support to foreign investors through purposeful reforms of key legislative amendments.
“Together with you as our strategic partner, we can make these investments happen in the Philippines. I invite esteemed German business leaders to continue to keep in mind the Philippines as a reliable partner that can support your market expansion and your operations,” he said.
“We prioritize the ease of doing business, exemplified by efforts to simplify tax payments and to streamline regulations, showcasing our unwavering support for businesses,” he added.
Marcos noted the amendments to the Public Service Act (PSA), Foreign Investments Act (FIA), Retail Trade Liberalization Act (RTLA), and Renewable Energy (RE) Act, which “mark a new era for strategic investments.”
He added the streamlined business registration, infrastructure development and the Comprehensive Tax Reform Program (Create Act), which made the Philippines one of the fastest-growing economies in Asia.
The President also highlighted other government efforts such as the overhaul of fiscal incentive structures and responsive policies and the public-private partnership (PPPs), which all play pivotal roles in promoting private sector participation.
Marcos also cited the establishment of the Maharlika Investment Fund, “which underscores the government’s dedication to financing priority projects and driving socioeconomic impact.”
The chief executive also said that the Philippines is turning to Germany to further foster strong business partnerships and collaboration particularly in renewable energy being European Union’s biggest economy both in Gross Domestic Products and population and a global force in technology and innovation.
He said he is always elated by the interest of German companies to support the country’s commitment to sustainability and climate resiliency.
“To further support these investments, we have put in place several energy transition policies including investment enablers designed to incentivize energy efficiency,” said Marcos.
“We are also working on developing programs that will support and facilitate the efforts to decarbonize our economy. I have high hopes that we can welcome the opportunity for greater cooperation on climate change and energy transition,” he added.
He noted that the Philippines is positioning itself as a regional hub for smart and sustainable manufacturing by attracting sustainability-driven strategic investments powered by renewable energy.
Marcos said the country recognizes that there are complementarities to be explored in critical minerals, and it is open to having a dedicated dialogue with German companies on the sustainable processing of green metals to be supported by strong adherence to high labor and environmental standards.
With the recent global challenges, the President underscored the dangers of limited sourcing, or concentrating supplies in a single country, as he urged for the urgent need to diversify production locations and explore alternative materials to de-risk and minimize disruptions in supply chains.
“Moreover, the transition to a low-carbon or net-zero scenario has further propelled the de-risking trend,” Marcos said.
“The Philippines and Germany both have aspirations for de-risked and diversified production and market value chains, which future-proofs our economies from the geo-political vagaries of our times,” he added.
Marcos also expressed gratitude to the Filipino community in Berlin for their unwavering support as they contributed to the government’s efforts to secure foreign investments through their invaluable work.
“You are the envoys, para kayong mga ambassador lahat ng ating kultura. You exemplify the values of family, faith, honesty, hard work, compassion, and solidarity wherever you go,” Marcos told the Filipino community gathering.
“Your presence in host countries fosters, hindi lamang dito sa Germany kundi lahat ng ating mga kababayan na nagtatrabaho sa iba’t-ibang bansa at -- the host countries foster goodwill and understanding. It strengthens the bonds between our two nations. It enriches the global community,” he added.
Marcos vowed that his administration will continue to work hard and match their contributions by reforms and programs under the “Bagong Pilipinas” agenda.
Marcos was the first Philippine president to address German business leaders in 10 years, coinciding with the 70th anniversary of the Philippine-Germany diplomatic relations. (TPM/SunStar Philippines)