Sweden eyes Philippine investment surge on EU trade pact

Sweden is counting on the Philippines-European Union (EU) Free Trade Agreement (FTA) to unlock a new wave of Swedish investment, as companies seek a stronger foothold in the country's manufacturing, technology, and infrastructure sectors.

Swedish Ambassador Anna Pernilla Ferry said the long-awaited trade deal could help turn growing investor interest into actual investments, with Swedish firms already looking to expand their local operations.

“I think one thing that we're really looking forward to is the finalization of the EU-Philippines Free Trade Agreement. That will also make a big push for trade and investment between our countries,” Ferry said in an interview on Friday.

“You see examples in other countries like Vietnam-EU, Singapore-EU, that have meant a lot. That will facilitate (investment push),” she added.

The investment push builds on an existing base of around 60 Swedish companies and brands operating in or represented in the Philippines.

Ferry said most of the 38 Swedish companies that participated in Business Sweden's latest business climate survey were bullish on the Philippine market, with plans to expand operations, invest more capital and hire additional workers.

Business Sweden is also conducting roadshows in Sweden to draw more investors into the Philippine market.

Sweden is also promoting its Triple Helix model, which links government, universities and private companies to accelerate innovation and commercialize research.

The initiative focuses on defense, mining and healthcare, sectors where Swedish expertise could open new opportunities for industrial partnerships and investments in the Philippines.

Meanwhile, Business Sweden Vice President and Asia-Pacific Head Emil Akander noted that Swedish firms increasingly see the Philippines as a potential manufacturing and technology hub, supported by its young workforce and long-term economic growth prospects.

While Swedish investments have traditionally focused on transport, energy, ports, airports and mining, Akander said opportunities are emerging in digitalization, electronics and higher-value manufacturing.

However, he acknowledged that high operating costs, logistics bottlenecks, energy availability and infrastructure gaps have historically made the Philippines a challenging destination for manufacturing investments.

Improvements in these areas could strengthen the country's appeal to Swedish manufacturers seeking to expand their Asian supply chains.

Among the major commitments already secured is Swedish-British pharmaceutical firm AstraZeneca's P7-billion investment in an innovation hub covering 2026 to 2028.

The project, located at De La Salle University Laguna Campus' Knowledge, Innovation, Science and Technology Park, is expected to support stronger collaboration between industry and academic researchers.Swedish Ambassador Anna Pernilla Ferry sees the long-awaited trade deal as a catalyst for fresh investments in the Philippines, with more Swedish firms eyeing expansion in the local market.

Photograph by Maria Romero for the Daily Tribune.