Sweden remains bullish on Phl, but...

The first Business Climate Survey for Swedish Companies in the Philippines, published by Team Sweden and which was distributed at the Nordic Ambassadors’ Forum held at the Dusit Thani Hotel in Makati last Thursday, Nov. 13, shows that 55 percent of Swedish firms plan to increase investments in the country in the next 12 months, while 58 percent expect industry turnover to grow.

The survey gathered responses from 31 Swedish firms operating across energy, industrial equipment, consumer goods and professional services.

The Nordic Ambassadors’ Forum was hosted by NordCham Philippines.

While the survey focused on Swedish firms, the findings reflect wider Nordic sentiment in the Philippines, where companies from Denmark, Finland and Norway have also expanded their presence in recent years.

Swedish Ambassador Anna Ferry said confidence in the Philippine market remains strong. “We’re very bullish when it comes to the Philippines. We’re quite positive of the business climate here,” she said.

According to the 2025 Business Climate Survey recently conducted by Sweden, “The Philippines stands out as one of Asia’s most dynamic and resilient economies, having outpaced both regional and Southeast Asian growth averages in 2024.”

Furthermore, the Swedish business climate survey showed that the Philippines  maintains  a strong growth trajectory through 2027.

This momentum, the survey said,  is anchored on a robust combination of demographic strength, sustained consumption, ongoing structural reforms and accelerated infrastructure development.

Despite the Philippines’ positive economic trajectory, however, the survey showed that companies still face significant challenges that limit their growth.

Swedish companies are hopeful, but continue to deal with regulatory complexities and infrastructure issues that hinder smooth operations. Forty-one percent of respondents consider the business environment “good” or “very good.”

While larger firms, especially those in industrial and professional services, express more confidence in the market, smaller and newer companies admitted that they face difficulties, with profitability rates significantly lower.

Some challenges mentioned by companies are bureaucratic inefficiencies, complex customs procedures and tax systems and infrastructure constraints. These challenges are particularly pronounced for smaller businesses and newer market entrants.

Swedish companies are, thus, calling for continued reforms to improve the consistency and efficiency of Philippine government processes, especially in digitalization and tax systems, to make the market more competitive.

The Swedish firms in the Philippines  report stable financial performance, with 55 percent achieving profitability in 2024. The overall market outlook remains optimistic in the Swedish business community, with 58 percent of the companies expecting their industry turnover to increase in the coming years.

Key sectors where Swedish companies are performing well include energy, industrial equipment and professional services.

Energy companies, the survey indicated, are particularly well-positioned to support the Philippines’ renewable energy targets, benefiting from the country’s strong commitment to sustainability.

Swedish industrial firms leverage the Philippines’ growing manufacturing base, while tech-enabled consultancies and professional services enjoy robust demand driven by the expanding outsourcing sector.

The Swedish business climate survey noted that the Philippines’ increasing need for digital transformation further enhances prospects for Swedish companies in this space.

Eighty-seven percent of companies say the Swedish brand supports their business, with nearly one in three citing it as a strong contributor. Swedish companies — known for their innovation, quality and safety — continue to enjoy a strong brand reputation in the Philippines. This reputation helps Swedish businesses differentiate themselves in a competitive market and build trust with both local consumers and government stakeholders.

Among the well-known Swedish brands in the Philippines are AstaZeneca, ABB, Atlas Copco, Electrolux, Ericsson, Husqvarna, Ikea, Saab AB, SKF and Wartsila.

Swedish companies also cited that highly satisfactory factors in the Philippines are the local network of suppliers, service providers and distributors, the work culture and workforce, personal safety and labor market regulations.

While noting that sustainability remains secondary to price for most Filipino consumers, the Swedish survey showed that there is an increasing demand for sustainable products and services in industrial sectors.

Thus, as sustainability becomes a more significant factor for business success, the survey showed that Swedish firms are well-positioned to capitalize on the growing trend toward green technologies and responsible business practices.

The Philippine government, the survey acknowledged, has recognized these challenges and continues to push forward infrastructure and regulatory reforms aimed at improving the business environment.

Key initiatives such as the “Build Better More” program, focused on critical infrastructure development, and the Ease of Doing Business Act, which seeks to streamline processes and reduce red tape, are seen as positive steps toward improving the local business climate.

These efforts are expected to alleviate many of the operational challenges that foreign companies, including Swedish firms, face and to create a more conducive environment for growth.

Bringing together Nordic ambassadors, business partners, government officials, and private sector leaders, last week’s Nordic Ambassadors’ Forum focused on open dialogue and collaboration to promote trust and transparency in governance, diplomacy and business.

This year’s forum carried the theme “Trust and Transparency: Nordic Values in Action,” highlighting how these values guide leadership, strengthen institutions and build partnerships.

Discussions explored how Nordic experiences can inspire practices that promote accountability, inclusiveness and good governance across sectors, providing valuable lessons for attendees to apply in the Philippine context.

The program featured ambassador-led dialogues, keynote addresses and private sector panels, giving attendees multiple opportunities to ask questions directly to the ambassadors and panelists.

Denmark’s Ambassador Franz-Michael Mellbin was the first to present, followed by Finland’s Ambassador Saija Nurminen, then by Norway’s Ambassador Christian Halaas Lyster and Sweden’s Ambassador Anna Ferry.

The panel discussion was  moderated by Axel Fries, executive director of NordCham Philippines.

The discussion focused  on Nordic values — transparency, trust and collaboration that shape diplomacy, development and international cooperation. The discussion connected these lessons to practical strategies for policy-making, business partnerships, and community initiatives in the Philippines.