German investors invited to visit the Philippines

Pursuing aggressive investment promotion efforts for the Philippines, the Philippine Economic Zone Authority (PEZA) has recently embarked on a week-long investment mission to Germany last May 13-17, 2024.

PEZA Director General Tereso O. Panga said, “The mission aimed to touch base and understand the latest trends in the country and European region. This also served as our follow-through on the recent visits of President Ferdinand R. Marcos Jr. and the Department of Trade and Industry (DTI) in Germany, with the goal of increasing the presence of German investments in the country.”

It is worth noting that to date, PEZA is home to about 37 locator companies with German equity located within the zones. These registered business enterprises generate more than PhP 30 billion in investments and create above 20,000 direct jobs for Filipinos.

For the said mission, PEZA partnered with several credible groups such as the German Philippine Chamber of Commerce and Industry, the European Chamber of Commerce in the Philippines, Sumitomo Mitsui Banking Corporation (SMBC), Philippine Trade and Investment Center (PTIC) in Berlin, and the Asian Consulting Group through Mr. Raymond Abrea to invite more German investments into the Philippine economic zones.

IFAT Munich 2024

Coinciding with the mission, PEZA took the opportunity to visit the IFAT Munich 2024, which is a bi-annual event showcasing the biggest and most modern environmental technologies available in the market.

“This event is important to PEZA as we are transforming our ecozones into smart and sustainable locations for investments,” stated DG Panga.

With the assistance of GPCCI, PEZA was able to meet with several companies into wastewater treatment and watering solutions for manufacturing and agro-processing, which are helpful to locator companies’ compliance with the SDG and circular economy frameworks.

Among the exhibitors visited by PEZA, the team met with the world’s largest producer of Silicon Carbide membranes, considered a pioneering technology in filtration and wastewater treatment. This company is owned by a major stockholder of one of the world's top car makers.

They will be investing in the ecozones initially to provide waste-water treatment facility using nano-filtration technology following the success of their engagement with a leading electronics company in the country. They are open to manufacturing their filtration equipment for supply to the domestic and ASEAN markets.

PEZA also met with the Bayerischen Staatsministeriums für Umwelt und Verbraucherschutz (Bavarian State Ministry for Environment and Consumer Protection) and the German Water Partnership wherein the discussion revolved around water treatment and storage mechanisms and possible solutions and technologies that may be implemented in the ecozones.

The PEZA Chief said, “Our collaboration with Germany is important as we get a better sense of the German's appreciation of the Best Available Technology (BAT) and how it applies to the management of our zones especially as we increase the adoption of eco-industrial, sustainable development, and circular economy frameworks.”

B2B Meetings and Site Visits

Following IFAT Munich 2024, PEZA engaged in several business-to-business meetings and site visits with well-known German companies who are interested in doing business in the Philippines.

PEZA was able to meet with the officials of a known German firm manufacturing automotive safety sensors among other products in their Philippine operations wherein they mentioned their plans to expand its operations in the country in the future given the ongoing testing of their new products.

One of the world’s largest manufacturers of discrete semiconductors and passive electric components that are essential to innovative designs across several industries such as automotive, industrial, computing, military, aerospace, and medical markets also discussed with PEZA plans to expand its operations in the Philippines to cater to their new products.

Moreover, PEZA was able to secure a meeting with one of the world’s biggest pharmaceutical companies that is into life sciences, healthcare, and electronics; one of the world’s leading car makers headquartered in Germany; and a company into pharma laboratory and medical equipment calibration, which is now preparing its application with PEZA.

The Director General said, “We are excited to announce the identities of these companies once they file their application with PEZA.”

In addition to these companies, PEZA also had a meeting with PTIC Berlin STR Nicanor Bautista, SMBC officials from the EU AG branch, and Department of Tourism (DOT) Frankfurt Attache Daks Gonzales to discuss areas for collaboration especially in promoting the Philippines to German companies into electronics, pharmaceuticals, IT-BPM, automotive including export-oriented tourism facilities, special gases, and water technologies.

PTIC Berlin and PEZA are also closely working on inviting one of the biggest industrial gas producers in Germany and EU to locate in the Philippines after the said company’s initial due diligence conducted in the country upon the invitation of Trade Secretary and PEZA Board Chairman Alfredo E. Pascual.

Positive outlook for the Philippines

Germany has consistently ranked as a top trade and investment partner of the Philippines, with foreign direct investments inflow reaching $149.89 million and foreign-approved investments hitting P393. 99 billion in 2023.

SMBC EU’s report on the economic outlook of German companies noted that German companies consider the demographics and the availability of local supply chain when investing in the Philippines. It also reported that German companies are also closely looking at the effects of locating out of China and the current geopolitical issues in the region.

The PEZA Chief noted, “Given this positive outlook for the Philippines, we remain aggressive in our efforts to promote the country as a smart high-tech manufacturing hub and as an enviable investment destination in Asia.”

“With President Marcos as our best salesman and with Germany as our top trading partner, we are positive that more German investments will enter the Philippines and help in our goal of making the country the go-to investment haven in the region,” he added.

In furtherance of this collaboration with GPCCI, PEZA will be participating in its upcoming business forum on 29 May 2024 with the theme, “Navigating Opportunities for a Sustainable Philippine Economy.”