Malaysian business leaders on Thursday pledged a total of $285 million in investments during a roundtable meeting with President Ferdinand Marcos Jr. in Malaysia.
“I had the benefit of meeting a number of Malaysian [business leaders] in the key sectors of agriculture, transportation, and technology,” President Marcos said before leaving for Manila, where he was expected to arrive at 11 p.m.
The Malaysians expressed interest in investing in the food processing industry, multi-service digital platforms, aviation, aviation maintenance support services, logistics, manufacturing, infrastructure, and water and wastewater treatment in the country, he said.
Trade Secretary Alfredo Pascual said five companies that signed letters of intent with the Philippine government will help develop industries in the country and create more than 8,000 new jobs.
“We are optimistic that these signed LOIs will materialize in the coming months,” Pascual said.
One of the signed LOIs is with Malaysian dairy company Farm Fresh Berhad, which is keen on breeding cattle for milk production. The $20 million milk project is projected to start commercially by 2028 employing 200 workers.
Pascual said the new investments are on top of the ongoing construction of a 6,000-square-meter dairy processing facility in Pampanga with a lease contract for 200 to 400 hectares of contiguous farmlands suitable for raising 2,000 milking cows.
The President flew to Malaysia for a three-day state visit after receiving an invitation from the King of Malaysia.
Pascual joined the President in a series of meetings with Malaysian businesses during the trade mission, which is part of the President’s state visit to Malaysia.
The President said the meetings proved that the two neighboring countries are on the right track in establishing each other as an ideal investment partner.
“The investments that we have agreed on so far will inject a total of about $285 million, serving as a robust and affirmative indication of the ongoing trust and keen interest of businesses and investors in the Philippines,” President Marcos said.
The Philippines is considered a conducive business environment for foreign investors as many see the country as one of the best-performing economies in the Asia Pacific region, he said.
Pascual lauded the Malaysian companies for their sustained interest and confidence in the Philippines and apprised them of the investment opportunities in the country.
Speaker Ferdinand Martin G. Romualdez on Thursday hailed the partnership established between the Philippines and Malaysia in the Halal industry, saying it would create more jobs and business opportunities for the people of both countries.
On Tuesday, the President announced in a joint press conference with Malaysian Prime Minister Anwar Ibrahim that they agreed to convene the next Philippines-Malaysia Joint Commission meeting to discuss priority cooperation in areas of mutual interest, including in the Halal industry.
“The agreement between the Philippines and Malaysia to cooperate in this vital sector undoubtedly signifies a significant step towards the creation of more jobs, as well as livelihood and business prospects of our people,” Romualdez said.
He noted that according to market research, the global halal food market size reached $ 2,221.3 billion in 2022 and is expected to reach $4,177.3 billion by 2028.
“The Halal industry holds immense potential. By working together, we can capitalize on the Halal market’s vast opportunities, creating new avenues for trade, investment, and employment,” Romualdez said.
Malaysia has offered its expertise to train Philippine personnel and officials in this sector, particularly those in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
In 2022, Malaysia was the Philippines’ 10th major trading partner and 11th biggest export market.
Foreign direct investments (FDI) from Malaysia in 2022 showed a sharp 505 percent increase from 2021, accounting for a 17.8 percent share of the total FDI from the Association of Southeast Asian Nations or ASEAN.
For the first quarter of this year, the Philippines outperformed its peers in the region by posting a 6.4 percent growth in gross domestic product (GDP) in the first quarter of 2023, which is within the country’s 6 to 7 percent target for the year.
The Marcos administration is keen on building up the economy with initiatives focused on making it easier to do business here.
Earlier this month, Mr. Marcos issued Executive Order No. 18 establishing “green lanes” to expedite the processing permits and licenses of strategic investments.
Among the latest measures passed are the Retail Trade Liberalization Act amendments, the Foreign Investments Act, the Public Services Act amendments, and the Renewable Energy (RE) Act.