MANILA, Philippines - German investors have shown a renewed interest in the Philippines, with more German firms looking to establish their presence in the country, the Philippine Economic Zone Authority (PEZA) said yesterday.
In an interview, PEZA Director General Lilia B. De Lima said that in a recent visit to Germany, she was able to secure firm commitments from a number of German firms to visit the Philippines and check possible investment sites.
“German firms who are already in the Philippines are very happy, that is why we would like to attract more,” De Lima said.
She noted that at least three German PEZA locators have expanded their operations. Autoparts maker Continental Temic has announced an expansion plan and so has Lufthansa Teknik. Linde Gases in Cebu has infused P1 billion this year for expansion.
Aside from this, De Lima said the Philippines is in the short list of an auto parts maker for a manufacturing site in Asia. She said the Philippines is competing with eight other countries for this investment.
More investments in the business process outsourcing (BPO) Industry are expected from German firms as the global financial crisis has forced them to look for ways to cut costs, the German-Philippine Chamber of Commerce and Industry (GPCCI) said.
In a previous interview, GPCCI past president Franz Roland Odenthal said there will be more investments in the BPO sector even if investments in Germany are down.
Odenthal said there are many inquiries from German companies especially since the market condition improved and market information is better.
Odenthal said one firm was very happy with the business situation in the Philippines because of the very quick set-up. The company decided to invest in August and it opened its doors only six months after.
Odenthal said the Philippines remain as an attractive investment destination for German firms especially in the mining, maritime and service sector. According to Odenthal, German businesses are not worried about the perceived political noise and the tension in the southern part of the country.
“I can say German companies feel safe in their investments in the Philippines especially if they go into the PEZA zone,” Odenthal noted.
He noted that Germany is the sixth largest investor in the Philippines and he sees the trend continuing. “There is really a good perspective over-all,” Odenthal said.