MANILA, March 13 (Reuters) – The Philippines secured investment commitments of about $5 billion from German and American companies in sectors such as health care and energy this week, in what could be a major win for the country as it competes with other countries in the region for foreign capital.
President Ferdinand Marcos Jr., who is on a three-day working visit to Germany, has secured investment commitments worth $4 billion from German companies, following more than $1 billion in pledges from American companies, the German Trade Ministry announced on Wednesday.
U.S. Commerce Secretary Gina Raimondo on Tuesday concluded a two-day trade mission to the Philippines with executives from 22 companies, including United Airlines, Alphabet Inc.'s Google, Visa and Microsoft.
The Philippines has long struggled to attract foreign capital due to bureaucracy, weak infrastructure and policy uncertainty, and has lost business to other Southeast Asian countries offering better tax incentives and lower operating costs.
Startup Ally Power said it has signed a $400 million contract with power company Manila Electric Co. to build a hydrogen-electric refueling station.
Microsoft is working with the Bangko Sentral ng Pilipinas, the Department of Budget and the Department of Trade to explore how its AI products can help improve productivity, the Department of Trade said.
The Philippines has signed eight investment agreements in Germany covering solar cell manufacturing, automotive modification and the production of military armored personnel carriers.
Other agreements include the development of a hospital training centre, an innovation hub and digital healthcare partnership, and the revitalisation of agricultural land.
The Philippines is set to attract $12 billion in foreign direct investment in 2022, behind Vietnam's $15.7 billion and Indonesia's $21.1 billion, according to data on the Association of Southeast Asian Nations (ASEAN) website.
(1 dollar = 55.2330 Philippine pesos)
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Reporting by Neil Jerome Morales; Editing by Jacqueline Wong, Stephen Coates and Bernadette Baum
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