Finance Secretary Benjamin Diokno asked Luxembourg-based funds and business groups to look at emerging investment opportunities in the Philippines during a forum hosted by the Luxembourg Stock Exchange (LuxSE) on Oct. 24, 2023.
“From clean energy to cutting-edge technology, the Philippines is primed and ready to seize emerging opportunities with our partners from around the world,” Diokno said in a presentation.
Diokno cited the Philippines’ impressive economic performance when it posted its strongest full-year growth in over four decades at 7.6 percent in 2022, surpassing the country’s pre-pandemic output level.
The robust performance was recognized by international financial institutions. The ASEAN+3 Macroeconomic Research Office (AMRO) expects the Philippines to post the fastest growth in Southeast Asia both at 5.9 percent in 2023 and 6.5 percent in 2024.
The World Bank Group also sees the Philippines outpacing its East Asia and the Pacific peers at 5.6 percent in 2023.
The Philippines has maintained its investor-grade credit ratings from S&P Global Ratings, Moody’s Investors Service and Fitch Ratings throughout the pandemic. These continue to improve as Japan-based debt watcher R&I recently revised its outlook for the Philippines from stable to positive, while Fitch Ratings upgraded its outlook from negative to stable.
Diokno also shared with investors the Philippines’ 197 priority infrastructure flagship projects (IFPs) available for partnership, which have a total investment requirement of about $155 billion.
He informed investors of the improved ease of doing business in the country through the establishment of green lanes and reforms to the country’s public-private partnership (PPP) policy environment.
“This PPP Code is the product of close coordination between the economic team and Congress to achieve a unified and predictable PPP policy environment that will facilitate higher quality infrastructure projects in the country,” Diokno said.
Diokno said transforming the Philippines into a fast-rising investment hub requires greater foreign participation, which drove the government to enhance retail trade and liberalize key sectors including toll roads, airports, expressways, shipping and telecommunications.
“We have also opened up the renewable energy sector to full foreign ownership. This bold move is seen to open up the floodgates to green investments and green jobs, quickening our transition to a green economy,” Diokno said.
The Philippines recently exchanged financing agreements with the European Union (EU) on the Green Economy Program in the Philippines (GEPP) which will support the country’s transition into a green and circular economy. Diokno and EU counterparts signed the agreement in Brussels on Oct. 25, 2023.
Diokno also introduced the Maharlika Investment Fund –– the Philippines’ first sovereign wealth fund which will serve as a vehicle for driving long-term economic development.