More German businesses are expected to set up operations in the Philippines, seeing a "good future" as the government works on infrastructure development to strengthen trade between the two nations, the German-Philippine Chamber of Commerce Inc. (GPCCI) said.
“We are quite happy that we have a continuous amendment and continuous support [from] the government now. We see a lot of offices, [setting] aside our members in the GPCCI. They all foresee a good future here in the Philippines,” GPCCI President Stefan Schmitz told reporters at the Mabuhay Germany press briefing on Wednesday, Nov. 8 for its Nov. 16 to 18 event.
Schmitz said that the GPCCI will focus its work on bringing "more trust and more transparency in the law" for businesses while expanding in the country.
"This is really a long way and this needs transparency. And we’re trying to help here our partners, our members, as well as the Philippine side to make this work,” he added.
On another note, Schmitz cited that the lack of skilled workers in the Philippines is one of the remaining challenges that need to be addressed, adding that it is an issue not only in the Philippines but also in other countries worldwide.
"We’ll have to take care as well that not too many of you (Filipinos) will go abroad,” Schmitz said, seeing that the number of overseas Filipino workers (OFWs) is increasing.
Meanwhile, GPCCI Executive Director Christopher Zimmer, who also serves in the logistics sector, said that transportation costs in the country generally affect the efficiency of doing business.
However, he expressed that they are “happy to see that there are necessary investments for infrastructure."
Department of Transportation Secretary (DOTr) Jaime Bautista recently presented the DoTr’s projects and initiatives to improve transportation infrastructure in the country to GPCCI, in which the chamber expressed its support.
To date, Bautista said that the DoTr is working on more than 160 infrastructure flagship projects, including 59 railway projects, 47 road projects, 28 aviation projects, and 26 maritime projects.
Meanwhile, DoTr is also pushing 20 thematic initiatives focused on reducing logistics costs, creating jobs, promoting transport safety, carbon neutrality, disaster resilience, gender equality, disability, and social inclusion, among others.
Zimmer also pointed out further deregulation in the country as the foreign chambers saw "watering down" of deregulation bills and tax bills, particularly since "minimum retail investment is initially lower."
"I think protection… is quite normal [especially in a country like the Philippines]. But we have seen in other countries that deregulation can be an answer to that," he said.
"If you allow goods to flow freely, if you allow investments to flow freely despite nationalities, etc. it will help to alleviate poverty," Zimmer added.
To date, Germany remains the top trading partner of the Philippines in the European Union (EU), with a total trade value of $4.7 billion in 2022.
GPCCI will host its Mabuhay Germany 2023 on Nov. 16 to 18 at the World Trade Center, Pasay City highlighting sustainability in trade and collaboration efforts between the Philippines and Germany.
The event will feature various industries, including renewable energy, infrastructure, education, business consulting, and tourism among others.