Department of Trade and Industry (DTI) Secretary Alfredo Pascual described the partnership between the Philippines and Germany as robust and enduring, during the 2nd Joint Economic Commission (JEC) meeting on March 27 in Manila.
Secretary Pascual highlighted, “Germany has consistently ranked as a top trade and investment partner, and 2023 was a record-breaking year. Foreign direct investment (FDI) from Germany soared to a staggering USD149.89 million, the highest since 2005. This momentum continued with Germany emerging as the leading source of foreign-approved investments in 2023, contributing a remarkable PHP393.99 billion.”
Likewise, the German delegation noted the consistent increase in bilateral trade turnover in recent years and recognized the Philippines as a production and sales hub for German companies in ASEAN and the Asia-Pacific region.
The JEC meeting, chaired by DTI Undersecretary for International Trade Allan B. Gepty and Federal Ministry for Economic Affairs and Climate Action (BMWK) Parliamentary State Secretary Stefan Wenzel, focused on strong economic cooperation in manufacturing and industrial services, energy, construction and infrastructure, information technology-business process management (IT-BPM), innovation and startups, vocational education and training, and labor.
Over 70 representatives from government agencies and business sectors from both countries participated in the meeting. Germany was also represented by German Trade and Invest, its foreign trade and inward investment agency.
German companies Lufthansa Technik Philippines, Continental, and Bosch recognized the strong value proposition of the Philippines’ manufacturing and services sector relative to its peers. They also praised the high-skill level of Filipino workers, especially in IT-BPM, vocational education, and labor, and commended the government’s efforts to improve the ease of doing business.
Meanwhile, wpd AG affirmed strong optimism for the Philippines’ potential and acknowledged the support from the Department of Energy (DOE) and the DTI’s Board of Investments (BOI) for the companies’ solar and offshore wind projects.
Philippine Overseas Construction Board Executive Director Doris U. Gacho expressed the Board’s interest in collaborative projects with Germany, promoting Philippines construction and engineering services, and capacitate the country’s construction workforce.
Aligned with these goals, the PCA and the BFW Construction Training Institute NRW signed a Memorandum of Understanding (MOU) during the JEC meeting. The MOU aims to promote the German Dual-Training System within the Philippines, bring German technology innovation in the Philippines, and enable the exchange of best practices through study visits.
Furthermore, BOI Director for Resource-Based Industries Service Raquel B. Echague and Department of Environment and Natural Resources-Mines and Geosciences Bureau Engr. Bernardo V. Bitanga presented the value proposition for minerals processing in the Philippines. They also proposed cooperation projects such as technical assistance for establishing an iron-making facility.
DTI Undersecretary for Competitiveness and Innovation Rafaelita M. Aldaba provided updates on the ongoing cooperation initiatives of the Department with Siemens on Industry 4.0-related activities and Start2 Group on strengthening the Philippine startup ecosystem.
In addition, DTI Undersecretary for Industry Development and Investment Promotions Group Ceferino S. Rodolfo addressed the value proposition of KfW IPEX-Bank Asia Ltd. by highlighting the Philippine companies’ engagement in major infrastructure projects holding opportunities for investment financing.
Lastly, Technical Education and Skills Development Authority Executive Director Charlyn B. Justimbaste reported developments on the implementation of MOUs signed in January 2024 with GPCCI, Siemens Inc., and Festo Inc. during Germany Federal Foreign Minister Annalena Baerbock’s visit to the Philippines.
“The meeting revealed the growing potential of our economic relationship with Germany and the remarkable synergy between our economies. Through the JEC, we are building our shared future–one that leverages our strengths and our united goal of bringing inclusive and sustainable growth for all,” Secretary Pascual concluded.
