The Australian government expressed hope recently about Philippine economic growth, citing significant areas of development in the increased trade, economic, and educational ties with the country.
Australian Trade and Investment Commission (Austrade) senior trade and investment commissioner Christopher Lim expressed confidence that Australia and Southeast Asia, particularly the Philippines, have significant potential and mutual benefits to gain. The Southeast Asia Economic Strategy until 2040 was launched recently to shape Australia’s relationship with Southeast Asia over the next 17 years.
“There's never been a more exciting time to work on issues relating to the Philippines, because we are very bullish about the prospects for Philippine economic growth," Lim said during the Australian Business Briefing at the Ambassador’s residence in Forbes Park, last Oct. 6.
“And correspondingly, we are also very focused and also very, very hopeful about increased links between Australia and the Philippines, in terms of trade, economic, and educational ties,” he added.
During the business briefing, Lim reported a significant increase in Australian companies entering the Philippines, including agrifood, education, mining, tech, cybersecurity, and potential generative AI companies.
In 2022, Australia became the Philippines' 15th largest export partner bearing a two-way trade value of Australian dollars AUS$6 billion, an 18 percent increase from 2021.
In addition, over 2,000 Australian companies are exporting to the Philippines, primarily in the food sector.
Also last year, Australia ranked as the top source of lamb, fresh grapes, pears, stone fruits, wine, beef, and dairy; the second top source of wine and beef; and the fourth largest top source of dairy for the Philippines.
“The market continues to offer opportunities [for] food and beverage products for retail and food service and a lot of importers are looking to Australia for new and innovative supply of fresh produce of beef, dairy, packaged foods and beverages,” Lim said.
Further, consumer products, including Australian personal healthcare, supplements, skincare, and homewares, are becoming increasingly popular in the retail sector.
Meanwhile, Australia now has 30,000 Filipino students, compared to 18,000 before the pandemic.
Citing promising potential examples between the two countries, Lim emphasized that the Philippines has introduced a P1,000 polymer banknote, a collaboration between Australia and the Philippines.
“Just like the polymer banknotes, it signifies how strong, durable, and long-lasting our relationship now is,” Lim expressed.
Moreover, the Philippines’ Department of Transportation has granted two contracts to Leighton Asia, a subsidiary of the CIMIC Group, to build a portion of the North-South Commuter Railway System.
Philippine’s Ayala Corporation also has invested over AUS$1 billion into renewable energy in Australia.
Similarly, under the Ayala Group, AC Energy Corporation (ACEN) decided to triple its investment in Australia from AUS$2 billion to AUS$6 billion adding three gigawatts of solar capacity over the following three years during the visit of the Australian Prime Minister Anthony Albanese in the country.
ICTSI has invested an additional $235 million to expand its Victoria International Container Terminal.
Blueleaf Energy’s portfolio company Macquarie has invested $1.2 billion in the largest floating solar project in the world in Laguna Lake.
Australia’s St. Baker Energy Innovation Fund also invested $10 million for the construction of a battery storage manufacturing plant in New Clark City, expecting to significantly benefit the Philippine industry.
Apart from these, Lim also noted the recently exported Philippine carabao mangoes to Sydney and Perth, Australia.
“So, everything points to a very robust bilateral economic relationship between Australia and the Philippines,” Lim added.
Doing more to boost bilateral trade potential
With the Southeast Asia Economic Strategy, Lim said that the Australian government “will do even more to realize the potential that is offered by Australia and the Philippines.”
In doing so, he said that the Australian government will immediately focus on three key areas. First is the Southeast Asia Business Exchange which will launch trade missions between the Philippines and Australia early next year. The Australian trade commissioner will be promoting the Philippines' business opportunities to Australian businesses in this event.
Secondly, Austrade plans to establish investment deal teams to boost Australian firms' investment in Southeast Asia, particularly in the Philippines, thereby promoting Southeast Asian investment.
Thirdly, the agency will facilitate exchanges between young professionals, aiming to attract Filipino and Australian business people to establish firms in the Philippines and Australia respectively.
Also present during the briefing were business representatives of Australian companies such as Telstra, BTI Payments, IDP Education, and Macquarie Group -- which have been serving in the Philippines for many years -- presenting their service expertise and major contributions to the Philippine economy in terms of telecommunications, financial services, educational services, and trading operations. (Ma. Joselie C. Garcia)