July 11, 2023
The Europe Investment Roadshow led by the Department of Trade and Industry (DTI) has resulted in P73.75 billion worth of investment leads, with renewable energy and IT and Business Process Management (IT-BPM) sectors receiving the larger share in the investment pie.
Following the three-week trip of the Philippine delegation to Europe, particularly in France, United Kingdom, Belgium, The Netherlands, and Germany, to lure more investments into the country, Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual reported that the team has clinched P73.75 billion worth of investment leads.
In a statement released by the DTI on Monday, Pascual explained that the P73.75-billion investment leads figure is equivalent to 16 “positive” investment leads. He also unveiled the breakdown of the sectors of these projects.
The trade chief said six projects are in the renewable energy (RE) sector, six are in the IT-BPM sector, particularly four on the establishment and expansion of global business centers and shared services in IT solutions for cybersecurity and one lead in game development; while two are in manufacturing, and one in construction services; and, one in acquisition.
However, he said the three-week investment trip of the Philippine delegation to Europe generated 48 project investment leads.
Out of these 48 leads, the trade chief said 14 are in the area of manufacturing and related services such as in training and Integrated Circuit (IC) Design; 16 are in the area of IT-BPM such as Global Businesses Services/Shared Services Centers, Healthcare Information and Management Services, Clinical Research/Trials, IT solutions for cybersecurity and game development; 15 are in the area of RE, particularly in onshore/offshore shore wind, solar, and hydrogen; and three in infrastructure and construction related services.
Meanwhile, BOI Managing Head Ceferino S. Rodolfo divulged that among the infrastructure-related investments secured from the roadshow is a tunnel boring machine, an equipment which will be used to complete the Metro Manila Subway Project.
Rodolfo, meanwhile, explained to reporters that while there were 48 projects as investment leads, the 16 projects “‘yun lang ‘yung merong numbers. Ibig sabihin, pag may number, mayroon na talagang due diligence na ginawa ‘yung mga companies.”
Pascual said while the 32 remaining projects have not yet presented investment figures unlike the 16 leads, these projects have already expressed interest in investing.
Meanwhile, the trade chief explained the timetable of the investment leads that the Philippine delegation secured from the three-week investment trip in Europe, if not all, will “come to fruition” within the next five years.
Pascual illustrated the process that the investments go through, saying that before they come to fruition, these investments would have to go through “initial studies.” He cited an RE project and investments related to manufacturing as an example.
“Nagulat ako kausap ko yung mga may renewable project nakita ko ’yung timetable nila, naku kasi ano palang pagpasok nila dito meron sila of course initial studies galing sa World Bank in terms of wind resources kung offshore wind ’yan but they will have to confirm that. So they’ll have to commission studies kasi malaking investment ’yan,” Pascual explained.
“So magco-commission sila ng magii-study aabutin ’yun one year, two years tapos mga permits ’yun inaayos ngayon pag na speed up natin ’yun especially sa local government level bibilis,” he added.
For investments related to manufacturing, Pascual said, investors in this sector usually look at the supply chain of the Philippines.
For instance, he said, “Kamukha ng mga kausap namin marami interesado na aerospace manufacturing, kailangan ‘yung mga parts that will go into components being prepared by the manufacturer of aerospace suppliers, ma-source nila dito otherwise magka-calculate sila cheaper gawin dito pero may transport cost ka to bring to the Philippines the raw materials and component parts. So ‘yun pag-aaralan pa rin ‘yun.”