German FDI in Phl seen growing

MANILA, Philippines - Even with the dispute involving the Ninoy Aquino International Airport Terminal 3 still unresolved, there is growing interest in Germany for investment opportunities in the Philippines.

Michael Hasper, chargé d’affaires of the German embassy, reiterated the hope expressed by his country’s ambassadors who were previously posted in Manila for a speedy resolution of the dispute between the Philippine government and German airport operator Fraport AG.

Hasper, however, said other aspects of bilateral ties were moving along well, with several high-level visits in Manila this year by German officials.

“We have very happy German investors here,” Hasper told The STAR last Monday.

The German embassy hosted a reception the other night in a belated celebration of the 23rd anniversary of German Unity Day at the New World Hotel in Makati City.

“Considering the strong economic growth rates in the Philippines and the economic strength of Germany as the world’s third largest exporting nation, we are confident bilateral trade between our countries will increase further continuously,” Hasper said in his welcome remarks.

Some years ago, Germany’s ambassador at the time, Christian-Ludwig Weber-Lortsch, said the dispute between Manila and Fraport was scaring away new investments from this country.

A similar message was expressed by Weber-Lortsch’s successor, Joachim Heidorn, who is now back in Berlin.

It was under Weber-Lortsch’s watch, in May 2011, that Germany’s Lufthansa Technik AG and its Philippine partner MacroAsia Corp. started a $30-million aircraft maintenance hangar at NAIA that can service even the Airbus 380, the world’s largest commercial aircraft.

But Weber-Lortsch, currently Germany’s ambassador to Myanmar, often said investments from his country could be higher if the Fraport dispute could be settled.

Hasper told The STAR that German investors like the skills of Filipino workers.

With bilateral trade at 3.81 billion euros in 2012, he said Germany is the Philippines’ most important trade partner from the European Union.

German companies, he said, have been successfully investing in the Philippines for a long time and in many fields.

German giant STEAG supplies much of the energy needs of Mindanao.

The EU is a major source of foreign direct investment for the Philippines, and Germany is one of the biggest sources of that FDI.

One area of German investor interest is renewable energy.

Among the German companies engaged in manufacturing are Continental Temic and BAG Philippines.

The Philippines exports to Germany mainly electronic and microelectronic components, and imports electronics, machinery and chemical products.

Hasper said Germany is the most important source of official development assistance for the Philippines from the EU.

The Philippines has also been picked as the pilot country for Germany’s dual vocational educational training system.

Bilateral economic cooperation is mainly focused on environment and climate change adaptation.

German assistance has also been allocated for conflict transformation in Mindanao.

The German embassy provides funding for small-scale development projects in health and sanitation, education, infrastructure and income generation.