Germany commits $4B investments to PH

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The Philippines signed eight agreements with an investment value of  $4 billion (P220  billion) from Germany  on agriculture, energy, data centers, automotive manufacturing, information technology among others.

The Presidential Communications Office (PCO) said the agreements — three letters of intent (LOI), two memoranda of agreement (MOA), and three memoranda of understanding (MOU)- were presented during the Philippine-Germany Business forum in Berlin organized by the Department of Trade and Industry (DTI) in the presence of President Ferdinand Marcos Jr. on March 12.

Following the event, the President also had one-on-one meetings with representatives from  Siemens AG, Wind Power Development (WPD), and Airbus, and discussed opportunities for collaboration and investment in various sectors.

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The PCO said the LOIs cover the development of a hospital as a training center for lower tier hospitals;  the development of an Innovation Think Tank  hub and “spoke model” for an inclusive innovation ecosystem in the Philippines, and a strategic and digital partnership in healthcare involving the Department of Health.

It added  the MOAs include a public-private partnership between the Philippine government and a German company to rehabilitate, reclaim, and re-cultivate degraded farm lands in the Philippines and a collaboration on “mobility solutions, software services, manufacturing, factory automation, logistics services, energy, security, and safety systems for buildings, consumer appliances, and healthcare.

PCO said the MOUs included investments in a fully- integrated solar cell manufacturing facility; an automobile manufacturing facility that will modify cars into high-end 1 of 1 version and armor protected cars and build military- grade armored personnel carriers; and the establishment of data centers that will host a digital insurance platform for Asean.

“As the biggest economy in the EU (European Union), both in GDP (gross domestic product) and population, and a global force in technology and innovation, Germany is certainly one of the countries where we look forward to further fostering strong business partnerships and collaboration between our nations,” the President said in his address to the forum.

Marcos, in his meeting with Anand Stanley, president and head of Region, Airbus Asia-Pacific offered to assist the company in their “localization efforts, including its linkages to the country’s electronics and aerospace manufacturing industry.”

PCO said Airbus committed to enhance its joint venture partnership with the Philippine Aerospace Development Corp. and expressed willingness to support the Philippines’ Armed Forces of the Philippines  modernization program to help the country build its own in-country defense capabilities.

WPD is  in the process of establishing five onshore projects in various regions of the country, estimated to have an investment value of P56 billion, which are projected to be completed between 2027 and 2030.

The President also met with Siemens AG president and chief executive officer  Dr. Roland Busch where they talked about a collaboration  on technical upskilling initiatives, economic partnership, digital services, renewable energy, infrastructure and e-mobility.

Prior to the forum, the President and German Chancellor Olaf Scholz agreed, during their bilateral meeting, to enhance the Philippines-Germany trade and investment cooperation.

Germany is the Philippines’ 11th trading partner in 2023 and the leading source of foreign-approved investments, contributing a substantial $7 billion, or P393.55 billion, in the first nine months of 2023.

The Philippines and Germany signed the renewal of the Cooperation Program between the Technical Education and Skills Development Authority  and the Federal Institute for Vocational Education and Training that is aimed at upskilling and reskilling Filipino workers.

The  two nations are also working towards the conclusion of the MOA on the Placement of Skilled Workers and other Professionals.

Scholz invited more Filipinos to take advantage of their recently passed laws that allows the easier entry of foreign workers to Germany.

Germany serves as a second home to around 35,930 Filipinos.

 

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