Swedish investors have expressed interest in investing in the Philippines due to the country’s robust macroeconomic fundamentals, improved business climate, and highly skilled workforce.
In a statement Wednesday, the Department of Finance (DOF) said Finance Secretary Ralph Recto met with Swedish investors led by Skandinaviska Enskilda Banken (SEB) chairperson Marcus Wallenberg and Saab president and chief executive officer Micael Johansson on March 8 to discuss possible areas of cooperation.
The delegation was accompanied by Swedish Ambassador to the Philippines Annika Thunborg.
During the meeting, the investors expressed interest in bolstering the Philippines’ defense industry, drawing upon Sweden’s track record in enhancing defense capabilities in such countries as Brazil and Thailand.
They also noted that Sweden’s recent membership in the North Atlantic Treaty Organization presents significant opportunities for Swedish arms manufacturers to contribute to the modernization of the Philippines’ defense capabilities.
Other potential areas for collaboration discussed during the meeting are pharmaceuticals, financial solutions, green projects, and deeper public-private partnerships (PPP).
The SEB is a leading North European financial group with a market value of approximately PHP1.7 trillion as of March 2024.
Saab, on the other hand, is a Swedish defense and security company with a market value of roughly PHP580.18 billion as of the same period.
Recto urged Swedish investors to invest in the country’s flagship infrastructure projects primed and ready for PPP investments under the government’s Build Better More program.
The program features 185 big-ticket infrastructure projects worth PHP9.14 trillion ranging from power, physical connectivity, rural development, water resources, digitalization, sustainable initiatives, and health care.
Recto said the Philippines is also the fastest-growing economy in the ASEAN despite such external challenges as elevated inflation, slower global growth, and rising geopolitical tensions.
He also highlighted the pro-business and economic liberalization policies that the country has in place to foster a welcoming environment for businesses and encourage foreign partnerships.
These include the recently enacted PPP Code; the amendments to the Retail Trade Liberalization Act, the Public Service Act, and the Foreign Investments Act (FIA); and the amendments to the implementing rules and regulations of the Renewable Energy Act of 2008 that granted full foreign ownership of renewable energy projects.
Recto said the government is also refining the Corporate Recovery and Tax Incentives for Enterprises Act to further tailor-fit incentives to investor interests. (PNA)
