German companies in the Philippines are inclined to increase their investments in the country as bilateral trade talks between the Philippines and the EU have given investors the confidence to continue doing business in the country, a survey said.
According to the Spring 2023 Survey of the German-Philippine Chamber of Commerce and Industry, Inc. (GPCCI) 46 percent of the participating GPCCI members are likely to invest more in the country within the next 12 months.
“Given the recent advancements in the EU-Philippines free trade agreement and the positive outcome of a successful economic briefing in Germany back in July, we are confident that many German businesses will increasingly consider investing in the Philippines,” said GPCCI president Stefan Schmitz.
In a courtesy call in August 22, the GPPCI presented the results of the recent survey to the Philippine Economic Zone Authority (PEZA) and discussed related issues and concerns.
The groups also furnished PEZA the results of their bi-annual AHK World Business Outlook survey conducted among the GPCCI members.
The survey revealed that the Philippines generally exhibited a better or higher result in the areas of economy, investments, employment, overall situation, and expectations.
GPCCI also raised some issues and concerns affecting German investors including the amendment of the CREATE and PEZA Laws.
PEZA director general Tereso Panga apprised the group of a recent directive from the President ordering concerned government offices to look into the CREATE Law with the objective of amending it.
“We’re glad that the President has already issued a compelling statement so we can provide relief to our locators who are unable to fully enjoy their incentives. These are the investors we have attracted to invest in the Philippines because of that promise of benefits and incentives as contained in the CREATE and in our registration agreements with PEZA. I think that should be the starting point before we can echo the call of the President to global investors that the Philippines is the smart investment destination in the region. We need to honor our commitments,” he said.
PEZA will also seek Congressional approval to amend the 28-year-old PEZA Law to be able to cope with the demands of locators and remain competitive worldwide amid the fast-changing market trends, he added.
PEZA and the GPCCI vowed to strengthen its collaborations to continuously attract German investors and other foreign investments in the country and even encourage existing investors to expand operations in the economic zones.
“With our longstanding partnership with PEZA, we eagerly anticipate offering our unwavering support to foster the promotion of the Philippines among German investors,” Schmitz said.
There are 40 registered German projects in economic zones with investments of P42.86 billion investments, about 1.57 percent of the total PEZA investments generating $412.664 million in exports value, and hosting 21,005 direct jobs.