Foreign business groups welcomed the Philippines’ leap to upper-middle-income status as a positive signal of the country’s growing position as a competitive investment destination.

In a statement, the American Chamber of Commerce of the Philippines (AmCham) said the World Bank’s reclassification of the Philippines is an important milestone in the country’s pursuit of economic progress.

“This achievement sends a positive signal to global investors at a time when companies are reassessing supply chains, expanding regional operations, and looking for new growth markets across the Indo-Pacific,” AmCham said.

The Philippines moved up from lower-middle-income to upper-middle-income-country (UMIC) status after its gross national income (GNI) per capita reached a record $4,850, according to the World Bank.

AmCham said the Philippines’ new status will further strengthen its appeal to American companies looking to invest in Southeast Asia. The group noted that the country is already attractive due to its young and skilled workforce, strong English proficiency, and longstanding economic ties with the US.

“These advantages, combined with a growing consumer market, position the Philippines to attract more investments in advanced manufacturing, digital services, infrastructure, healthcare, and other high-value sectors,” it said.

To ensure that this momentum carries into the coming years, AmCham said the country must focus on instituting reforms aimed at sustaining growth and enhancing competitiveness.

Among the top priorities, according to the group, is advancing policies that encourage innovation and investment to position the Philippines to attract more high-value investments and create better jobs.

This also includes accelerating infrastructure development, improving digital connectivity, ensuring affordable and reliable energy, streamlining government processes, and strengthening public-private partnerships, AmCham said.

“Continued public-private sector collaboration will be essential to ensuring that this milestone translates into broader economic opportunities and long-term prosperity,” the group added.

The European Chamber of Commerce of the Philippines (ECCP) said in a separate statement that the country’s UMIC status comes at a pivotal time for economic relations between the European Union (EU) and the Philippines, especially as both sides look to complete negotiations for a free trade agreement (FTA).

“As the Philippines advances in its development path, the timely conclusion of an ambitious, balanced, and commercially meaningful EU-Philippines FTA becomes even more important,” said ECCP President Diana Edralin.

She said the trade pact will build on the Philippines' economic gains by unlocking new opportunities in trade and investment and establishing a more permanent and reciprocal framework for market access to the EU. (Dexter Barro II)