Trade and Industry Secretary Alfredo E. Pascual expressed his eagerness for the Philippines to earn the status of a “Rising Asian Tiger Economy,” given the country's positive growth trajectory.

Addressing his fellow officials in a business meeting hosted by the Italian Chamber of Commerce of the Philippines (ICCI) on Wednesday, Feb. 1, Pascual noted that the Philippines was previously recognized as one of the fastest-growing economies in Asia with the “Asian Tiger” title.

“The Philippine economy grew by 5.6 percent in 2023, outpacing major economies in Asia, such as China (5.2 percent), Vietnam (5.0 percent), and Malaysia (3.8 percent) based on the latest available data,” said Pascual.

Given the country's rich history of economic resilience and growth, Pascual assured business stakeholders that the government is ramping up its efforts to realize its potential to reach the “Rising Asian Tiger Economy” status.

“With the collective efforts of the government, the private sector, and the Filipino people, I am confident that we will emerge as a premier investment hub and return to being the rising Asian Tiger Economy,” said Pascual.

In order to achieve this, the trade secretary shared that private consumption is being seen as a growth driver this year since inflation is predicted to return within the low target range, and oil prices are also expected to fall.

The government is betting on foreign direct investments (FDIs) to pull up the economy alongside establishing sound investment-grade credit ratings, implementing structural reforms for ease of doing business (EODB), and meeting the rising demand for Philippine exports amid easing supply chain issues.

“Strong foreign direct investment and macroeconomic prospects make countries more attractive to investment. Based on well-vetted empirical data, highly regarded consulting firm fDi Intelligence projected that the Philippines would be a 'standout destination' for FDI in 2024,” said Pascual.

He highlighted how FDIs were crucial to achieving the country's growth targets, citing the 73 percent surge in investments to P1.26 trillion recorded by the Board of Investments (BOI).

Notably, Pascual reiterated the country's goal to become a hub for electric vehicle (EV) manufacturing and assembly, leveraging the country's supply of green metals, expertise as a supply chain for EV parts, skilled software workers, and access to a diverse market.

In relation to that, he emphasized the country's focus on gaining renewable energy (RE) investments to utilize its natural energy sources, and expanding the semiconductor manufacturing services industry, which includes assembly, testing, and packaging for electronics. Over 1,000 companies are in the electronics manufacturing industry and has employed 3.2 million direct and indirect jobs for locals.

To encourage investments, Pascual mentioned the liberalization of the Renewable Energy (RE) Act which now allows 100 percent foreign ownership of projects engaging in exploration, development, and utilization of solar, wind, hydro, and tidal energy; as well as the Green Lanes for Strategic Investments policy that expedites processes for priority projects.

“I assure you that the Philippine government is fully committed to supporting and facilitating your business endeavors in our country. We extend our hand in partnership and stand ready to provide any assistance you may require as you navigate the business landscape in the Philippines,” said Pascual.