Foreign investors, particularly in the electronics sector, are adopting a cautious but phased approach to expansion in the Philippines as they await clarity on US tariff policies and the government’s anti-corruption efforts, according to the Philippine Chamber of Commerce and Industry (PCCI).
PCCI innovation chairman Perry Ferrer said investors are committing only partial funds initially, with the remainder contingent on progress in tariff discussions and addressing governance issues.
“They will invest, but in phases. For example, only half of the investment is coming in now, and the rest will depend on how tariff discussions and governance issues progress,” Ferrer said in an interview at the sidelines of the 51st Philippine Business Conference and Expo (PBC&E).
He said that ongoing corruption investigations have led some foreign firms to closely monitor developments, noting that if governance issues are not promptly addressed, they could weigh more heavily on investment decisions than tariffs.
“The tariff issue is still open, it’s fluid. But if you combine that with corruption, then that’s when investors begin to compare countries and reconsider,” he said.
The Philippines remains a favorable investment destination, according to Ferrer, who cited the country’s strong human resource base and improving economic fundamentals despite recent governance issues.
The Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) remains confident about modest export growth this year, supported by gradual gains in foreign investments and renewed investor interest in the local manufacturing base, Ferrer said.
He called for swift and decisive corrective action to address corruption, proposing that the private sector take a more active role in monitoring infrastructure projects, acting as the “eyes and ears” of government agencies such as the Department of Public Works and Highways (DPWH).
“We fell flat on our face, but let’s rise up together—government and private sector alike—and apply corrective measures just like any company would after a failure. The key is to act fast,” Ferrer said.
