The Philippines is positioning itself as a stronger investment destination for German companies as both countries seek deeper economic ties in areas such as electronics, renewable energy, infrastructure, healthcare, and advanced manufacturing.

This was highlighted during the German-Philippine Business Roundtable Briefing hosted by the German-Philippine Chamber of Commerce and Industry (GPCCI) in Makati, held alongside the state visit of German President Frank-Walter Steinmeier.

The discussion brought together German business leaders, Philippine government officials, and private sector representatives to explore opportunities for expanding trade and investment cooperation between the two economies.

Germany remains the Philippines’ largest trading and investment partner within the European Union, with bilateral trade reaching about $5.5 billion and net foreign direct investments amounting to $10.26 million in 2025, according to government data.

Department of Trade and Industry (DTI) Secretary Cristina Aldeguer-Roque assured German investors that the government is strengthening policies and reforms to make the country more attractive for foreign capital.

“These are not just possibilities or opportunities, these are real investments,” Roque said.

“We keep on updating and upgrading our incentive scheme... we take a whole-of-government approach to make sure we get things done,” she added.

Roque pointed to ongoing improvements in investment incentives, visa facilitation for foreign experts, and trade agreements as part of the administration’s efforts to encourage more foreign participation in the Philippine economy.

Anti-Red Tape Authority (ARTA) Director General Ernesto V. Perez said improving regulatory efficiency is critical in building investor confidence, noting that businesses need certainty in government processes before committing capital.

“Investment is an act of trust. A company does not only ask whether a market is growing it also asks: are the rules clear, are permits predictable, are timelines followed?” Perez said.

“When we make transactions easier, we do more than improve efficiency... we build trust. And when we build trust, we create the conditions for investments, jobs, innovation, and shared prosperity,” he added.

Perez highlighted improvements in government processes, including faster approval timelines for energy projects and the continued digitalization of business permits.

Beyond investment flows, workforce cooperation also emerged as a key area of partnership. Department of Migrant Workers Undersecretary Felicitas Bay cited the long-running healthcare worker partnership between the Philippines and Germany, which has deployed more than 2,500 Filipino nurses since 2013.

She said future cooperation could expand into information technology, engineering, skilled trades, and the adoption of Germany’s dual vocational training model.

“The Philippines values Germany not only as a key economic ally, but also as a trusted partner in advancing opportunities for skills development, workforce mobility, and human capital investment,” Bay said.

“Labor mobility can create positive outcomes for both sending and receiving countries when guided by principles of fairness, transparency, skills recognition, and worker protection,” she added.

The private sector also identified major opportunities for German firms in the Philippine market. Philippine Chamber of Commerce and Industry (PCCI) President Ferdinand “Perry” Ferrer cited reforms allowing greater foreign participation in key sectors such as telecommunications, transport, and power.

“The Philippines today offers German enterprises a legislative environment more accommodating than at any point in recent memory,” Ferrer said.

He identified renewable energy, water infrastructure, digital healthcare, and advanced manufacturing as priority areas for deeper cooperation.

Meanwhile, Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) President Dr. Danilo Lachica highlighted the importance of the electronics sector, which accounts for around 59% of Philippine exports, as a major opportunity for stronger German collaboration.

“As companies seek trusted partners in alternative manufacturing locations, the Philippines stands ready to play a larger role in supporting German and European supply chains,” Lachica said.

He called for greater cooperation in advanced manufacturing, workforce development, and green manufacturing.

Representing German industry, Wolfgang Niedermark, member of the Executive Board of the Federation of German Industries (BDI), said companies are looking to diversify their global partnerships and explore markets beyond traditional destinations.

“We need diversification, and we need to explore markets like yours, which is not new, but where we believe there is a lot of untapped potential,” Niedermark said.

GPCCI President Dr. Christian Peter Scheld said the Philippines should be viewed not merely as an emerging economy but as a market undergoing active reforms and growth.

“The Philippines is not an emerging market still finding its footing. It is a market that is actively reforming, actively opening, and actively growing,” Scheld said.

He added that stronger cooperation, including the potential European Union-Philippines Free Trade Agreement, could further expand economic opportunities between the two countries.

“What our colleagues from the Philippine government and private sector shared tonight was not a pitch... it was an accurate picture of where this country stands and what it aims for. The opportunities are documented. The relationships are in this room. The next step is yours,” Scheld said.