BERLIN, GERMANY — President Ferdinand Marcos Jr. has secured more than $4 billion or approximately P220 billion in foreign investments from German firms to boost cooperation in healthcare, information technology, agriculture, and manufacturing industries in the Philippines.

The Chief Executive highlighted this achievement in his working visit here in Germany, where he witnessed the presentation and formalization of eight investment agreementsduring the Philippine-German Business Forum.

Out of the eight agreements, three were expressions of intent from various German companies, two were formal memorandum of agreement, and three were memorandum of understanding.

In his address to German business leaders, Marcos Jr. underscored the important role of German businesses in transforming the Philippines’ economy.

"The part that the private sector plays in our transformation is a central one and it is going to be extremely important in the future. And I believe that this is the case in the now more inter-connected global economy,” Marcos Jr. said.

He, likewise, assured that the government has been working on “decarbonizing” its economy through developing the programs in the country.

He added that the Philippines can welcome the opportunity for greater cooperation on climate change and energy transition.

“Aligned with our efforts on decarbonization, we are positioning ourselves as a regional hub for smart and sustainable manufacturing,” he added.

Marcos Jr. also emphasized the importance of Germany's support for the Philippines' reapplication to the European Union's Generalized Scheme of Preferences Plus (GSP+) and for the resumption of negotiations for a Philippines-EU Free Trade Agreement (FTA).

"Germany’s support is vital to the country’s reapplication to the EU’s GSP+ and for the resumption of negotiations for a PH-EU FTA," Marcos Jr. said.

"These are what we hope to continue to resonate in the conduct of the 2nd Session of the Philippines-Germany Joint Economic Commission (JEC) on 27 March of this year that we will host in Manila," the President added.

The GSP+ program provides developing countries with duty-free access for 6,274 products to the EU market, while a free trade agreement between the Philippines and the EU would eliminate or reduce tariffs on both regions.

Marcos Jr. expressed the Philippines' anticipation for strengthening business partnerships and collaborations with Germany, highlighting it as one of the countries of particular interest.

"The Philippines and Germany both have aspirations for de-risked and diversified production and market value chains, which future-proofs our economies from the geo-political vagaries of our times," Marcos said.

"Our mutual commitment to democracy and a rules-based global order makes for a robust and enduring foundation for a sustainable partnership in trade and investment," he added.

Marcos emphasized that such efforts would be reinforced by the country's commitment to upholding stringent labor and environmental regulations.

Additionally, he assured potential German investors that the Philippines is proud to be an attractive location for complementary activities in both manufacturing and services sectors.

Business deals signed

The President witnessed the presentation and exchange of eight various memoranda of agreement or understanding and letters of intent that will help improve the Philippine economy.

A memorandum of understanding has been established for a $3.5 billion investment in a fully integrated solar cell manufacturing facility aimed at processing silicon sand into high-grade silicon ingots, which will then be utilized in the production of high-grade silicon wafers used in solar cell manufacturing.

One memorandum of agreement has been established for a $109 million public-private partnership venture aimed at rehabilitating, reclaiming, and recultivating 5,000 hectares of degraded farmland. This initiative is part of an organic farming project aimed at sustainably producing high-quality, healthy organic food at affordable prices. It also aligns with the country's objectives of achieving food security and sovereignty.

Another memorandum of understanding entails a $71 million investment in a manufacturing facility intended for the conversion of automobiles into high-end armor-protected vehicles, alongside the production of military-grade armored personnel carriers tailored for the Asian market.

Furthermore, there's a memorandum of understanding for a $38.25 million investment dedicated to establishing data centers that will host a digital insurance platform catering to the Philippines and Southeast Asia, aiming to bolster insurance penetration in the region.

Another memorandum of agreement has been signed to broaden potential collaborations across various sectors including mobility solutions, software services, manufacturing, factory automation, logistics services, energy, security and safety systems for buildings, consumer appliances, and healthcare.

A letter of intent has been exchanged for an additional $150,000 investment from a German company to support the development of a partner hospital into a training center. This center aims to address the training needs of other lower-tier hospitals and establish a curriculum focusing on imaging technology.

Furthermore, another letter of intent outlines an additional $55,000 investment for the development of an innovation think tank hub and spoke model. This initiative is geared towards fostering an inclusive innovation ecosystem.