The Philippines’ promotion to upper middle-income economy status is expected to strengthen its standing among global investors, with the American Chamber of Commerce of the Philippines (AmCham) saying the milestone comes as companies worldwide seek new destinations for expansion across the Indo-Pacific.

AmCham described the World Bank’s recognition as “an important milestone that reflects the country’s economic progress and growing potential,” adding that it “sends a positive signal to global investors at a time when companies are reassessing supply chains, expanding regional operations, and looking for new growth markets across the Indo-Pacific.”

The chamber said the upgraded classification reinforces the Philippines’ competitiveness as an investment destination and could help attract more capital that would support business expansion and job creation.

According to AmCham, “many American companies continue to view the Philippines as one of the most promising markets in Southeast Asia,” citing the country’s young and skilled workforce, strong English proficiency, growing consumer market and longstanding economic ties with the United States.

It said these strengths position the country to secure more investments in advanced manufacturing, digital services, infrastructure, healthcare and other high-value industries.

The chamber, however, said the country’s new economic standing should be matched by continued policy reforms to sustain growth and improve competitiveness.

“The challenge now is to build on this momentum,” AmCham said.

It identified faster infrastructure development, better digital connectivity, reliable and affordable energy, streamlined government processes, stronger public-private partnerships and policies that encourage innovation and investment as priorities for attracting more high-value investments.

AmCham added that “continued public-private sector collaboration will be essential to ensuring that this milestone translates into broader economic opportunities and long-term prosperity.”