MANILA – Companies participating in a prominent US trade and investment delegation to the Philippines are preparing to allocate more than $1 billion for investment in the country, spanning sectors such as energy and initiatives aimed at enhancing skills.
During a recent press briefing, US Secretary of Commerce Gina Raimondo disclosed that these companies will unveil their investment plans focusing on key sectors outlined by the government in Manila.
“On this trip alone, these companies are announcing over a billion dollars of US investments, including creating educational opportunities for over 30 million Filipinos in the form of digital upskilling, AI (artificial intelligence) upskilling digital training,” Raimondo said.
Raimondo mentioned that Microsoft Corp., specifically, is gearing up to collaborate with the Technical Education and Skills Development Authority to train over 100,000 Filipino women in AI and cybersecurity.
Furthermore, there will be an unveiling of an electric vehicle education center aimed at preparing Filipinos for employment opportunities in the rapidly expanding industry, as stated by a representative of the US government.
Investments in solar and nuclear projects are also on the agenda to bolster the Philippines’ energy and climate objectives.
Additionally, upcoming initiatives include the establishment of a new airline route to facilitate travel and tourism to Cebu.
Raimondo is leading the US Presidential Trade and Investment Mission currently underway in the country, accompanied by senior executives from various companies such as GreenFire Energy Inc., Google Asia Pacific, and Visa Inc., among others.
Frederick Go, the Special Assistant to the President for Investment and Economic Affairs, highlighted the Philippine government’s encouragement for US firms participating in the mission to engage in the country’s infrastructure projects. He also emphasized the importance of exploring priority sectors like semiconductors, electronics, food and agriculture production, and green minerals.
Go also mentioned that discussions with Raimondo included the renewal of the US Generalized System of Preferences (GSP) program, which lapsed at the end of 2020. The Philippines benefited from the GSP, which granted duty-free entry for certain exports to the US.
Trade Secretary Alfredo Pascual urged for the prompt execution of US government assistance in workforce development under the CHIPS Act. This support is crucial for advancing plans to broaden the Philippines’ involvement in the semiconductor industry, extending beyond assembly and packaging.
Manila also requested aid from the US Department of Commerce regarding various trade concerns, including detained apparel exports and shrimp paste shipments. Additionally, they sought assistance with the barrier faced by Philippine electronics companies in bidding for US government contracts, stemming from a requirement in the US Trade Agreements Act.
“We are confident that this day’s discussions will result in actionable measures. This mission serves as a platform to align our efforts and capitalize on both our nations’ economic successes. Further, this mission transcends traditional diplomatic missions to propel us toward stronger economic ties and shared prosperity,” Pascual said.
Raimondo said the mission was initiated by US President Joe Biden to see what more can be done to facilitate trade and investment between the two countries.
“So whether that is GSP or working in the Indo-Pacific Economic Framework, signing MOUs (memorandum of understanding) between our countries or between companies, all of these are things that we need to continue to make happen on our journey of expanding trade and investment between our countries and getting even closer,” Raimondo added.
The Philippines considers the US as its third-largest trading partner, with total trade amounting to around $20 billion. The US stands as the primary export destination for Philippine goods, valued at $12 billion, and the fifth-largest market for imports, totaling nearly $8.5 billion.
Over the past five years, the US has consistently been among the top five sources of foreign direct investment (FDI) in the Philippines. In the period from January to November of the previous year, the US ranked as the fourth-largest contributor of FDI to the Philippines, with a total investment surpassing $110 million.
Invitation to Build Better More
President Marcos extended an invitation to American firms to participate in his administration’s “Build, Better, More” program during discussions with delegates from the inaugural US trade mission. He characterized the US as the Philippines’ “essential strategic trading and investment ally.”
Headed by Raimondo, the delegates of this prominent presidential mission are in the Philippines to bolster collaboration between Filipino and American companies while strengthening bilateral relations.
This visit signifies the fulfillment of a commitment made by President Biden to Marcos during his official visit to Washington in May of the preceding year.
Addressing members of the delegation at Malacañang, Marcos outlined the Philippines’ ambition to launch 198 high-impact priority infrastructure flagship projects valued at P8.8 trillion or $148 billion under the Build, Better, More initiative.
The President emphasized that these flagship projects, covering areas such as physical connectivity, water resources, agriculture, health, digital connectivity, telecommunications, and energy, will lay the foundation for the Philippines’ aspiration to become the next logistics hub in Asia.
“We eagerly welcome participation by US investors in these transformative initiatives,” he said.
Additionally, President Marcos emphasized that the Philippines provides a plethora of advantages for businesses looking to expand and thrive. He highlighted its strategic position at the center of Southeast Asia, which he described as an ideal location for investors.
Furthermore, Marcos urged American businesses to consider investing in developing the Philippines’ energy sector and in critical metals exploration and processing, among other areas of opportunity.
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