US-based investment bank Citi expects more foreign investors in the Philippines due to the country's strong intellectual property (IP) protection.
Citi Philippines country officer and banking head Paul Favila said American business leaders aim to capitalize on the IP framework in the country, while the government and firms collaborate to hasten infrastructure development, such as renewable energy plants and transport networks.
"The way the laws of the land were constructed enforce our long-standing relationship with the US," he said recently in a media briefing in Bonifacio Global City, Taguig.
According to the 2024 IP Index by the US Chamber of Commerce, the Philippines obtained the 9th highest overall IP score in Asia at 41.58 percent out of 100 percent.
Secure space
"It means a secure space to move your production to without fear of your IP being stolen," Favila said.
IP refers to any inventions of the mind that can bring financial benefits.
‘The Philippines is proud to be leading the charge in cultivating a robust, sustainable and collaborative ASEAN TISC Network, enabling member states to see the value of fostering TISC hubs while ensuring each existing TISC fulfills its critical role in driving innovation not just regionally but globally,’
Favila said the Philippines might become a more attractive investment destination for the US and other countries amid the unfriendly tariffs of the Trump administration against China, Canada and Mexico.
"The Philippines is in a neutral space and we may benefit from the shifts in supply chains," Favila said.
He added more business activities will likely sprout from the continued projects for the Luzon Economic Corridor which will feature interlinked transport modes between trade hubs in the island's provinces, such as Subic Bay in Zambales and Clark in Pampanga.
Sell the country
"We need to sell the country. Yes, we have areas where we need to be more competitive but we don't talk enough about the competitive aspects of the Philippines," Favila said.
According to the Intellectual Property Office of the Philippines, the country already accounts for over 40 percent of IP support centers or ASEAN Technology and Innovation Support Centers (TISCs) in Southeast Asia as of January 2024.
"The Philippines is proud to be leading the charge in cultivating a robust, sustainable and collaborative ASEAN TISC Network, enabling member states to see the value of fostering TISC hubs while ensuring each existing TISC fulfills its critical role in driving innovation not just regionally but globally," IPOPHL director general Brigitte da Costa-Villaluz said.
Citi economist Nalin Chutchotitham said Filipino consumers will likely demand more goods and services from inventors due to a positive Philippine economic outlook.
Strong consumption growth
"We continue to see very strong growth in consumption of households and businesses that is supported by ample domestic liquidity and monetary policy easing by the Bangko Sentral ng Pilipinas," she said.
Citi projects the local economy to grow on average by 5.9 percent this year from 5.6 percent last year.
