Philippine Ambassador to the United States Jose Manuel Romualdez answers questions during a press conference at the embassy’s Romulo Hall on April 10, 2024, the day before the first-ever trilateral meeting between the Philippines, the United States, and Japan. Gabriel P. Lall/INQUIRER.net
WASHINGTON, DC – About $100 billion in investments could flow into the Philippines over the next five to 10 years, Philippine Ambassador to the United States Jose Manuel Romualdez said Wednesday (Eastern Time).
Speaking at a press conference at the Philippine Embassy here on the eve of the first-ever trilateral summit between the Philippines, the United States and Japan, Romualdez said there are many areas where investors are interested in putting their money to work.
Romualdez said these estimates were obtained from businesses and economic managers as the Philippines works towards economic liberalization.
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Hundreds of billions of investments
“I’m sorry, I don’t have rough numbers, but the numbers I’ve been hearing, which may sound a bit stretched in some ways, are that the amount of global investment is about $100 billion. I can say, the next five to 10 years, maybe five years would be more appropriate,” Romualdez said when asked for numbers on investments in the Philippines.
“We have a lot of areas of focus and the economic managers are pushing the country into a situation where we open up the economy, especially in the energy sector, which is very important to us, and of course in the digital infrastructure and infrastructure sector. “Physical infrastructure is also one of the other aspects of the economic package that we would like to offer to potential investors,” he added.
In response to a follow-up question about the numbers he presented, Romualdez said investment would not come from the United States alone, but from other allies like Japan.
“Conservatively, within the next five to 10 years. This is a number that has been shown to us by some potential investments that could come in from the US as well as from Japan. It also includes the technical part,” he explained.
Just recently, American companies announced investments of more than $1 billion in the Philippines.
During an official visit to Manila on a trade and investment mission last March, U.S. Secretary of Commerce Gina Raimondo said the United States aims to be the economic partner of choice in the Indo-Pacific region.
semiconductors and energy
Romualdez said the Philippines could already achieve a large percentage of this number simply by capturing a share of the U.S. semiconductor industry, which is said to be worth $80 billion in the Asean region alone.
“But just to give you an example, the semiconductor industry alone is now an $80 billion business in the ASEAN region. If we could capture even 10 or 20 percent of that, they would seriously consider the Philippines. We are one of the seven countries selected by the United States to be the location because we are a trusted ally… This shows how much could flow into the Philippines. “There is,” the ambassador said.
“You know, the semiconductor industry is going to be the wave of the future in terms of the technology that’s needed for everything from cars to defense equipment,” he added.
Investment in energy will also play a key role in achieving this figure, especially as the Philippines needs to increase energy sources to sustain economic growth.
“Of course, energy exploration, including in the West Philippine Sea, is also part of the energy demand that we are looking at, and the energy demand is increasing year by year, and in the next two years, the energy demand in this country will be very high. It’s going to happen, so I think we’re trying to move it as quickly as possible,” Romualdez said.
Romualdez said this number could be achieved by the time President Ferdinand Marcos Jr. leaves office in 2028.
$100 billion over the next five years
“Apart from that, we are also looking at investing in the digital sector as well as the solar panel manufacturing sector and things like that. So we can actually realize $100 billion over the next five years, probably before the end of President Marcos’ term. I look forward to it,” he said.
Romualdez’s statement came after National Security Council Strategic Communications Coordinator John Kirby also indicated in a separate briefing at the embassy that economic partnerships and major investments would be part of the agenda for the trilateral meeting. It was done.
While Kirby said he was not pre-empting announcements from leaders such as Philippine President Ferdinand Marcos Jr., U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida, these new initiatives will encourage investment in the Philippines. He said it would “accelerate and surge.”
“For example, Secretary of Commerce (Gina Marie) Raimondo will host economic ministers Thursday morning to discuss strengthening trade and investment between the three countries. Our foreign minister and deputy foreign secretary also met,” Kirby said. he told reporters.
“On Thursday, leaders will announce new initiatives to accelerate and surge quality infrastructure investment in the Philippines to strengthen energy security, deepen maritime cooperation, and strengthen partnerships in technology and cybersecurity. ‘ he added.
business meeting
Romualdez said that apart from the trilateral and bilateral meetings that Marcos will participate in, part of the president’s schedule will include meetings and engagements with major U.S. companies.
The ambassador said the dinner with 200 business people was arranged by the Marcos American-Philippine Association.
“As you know, the President is also going to meet with some businessmen here and they have asked to meet with him, so the President will meet with them and also attend a dinner hosted by the American-Philippine Association. “Our partner here in Washington, D.C., has organized a large dinner party for about 200 businessmen,” he said.
“Again, this shows how much interest there is in investing in this country at this time,” he added.
Mr. Marcos is currently on his way here for a three-day official visit that includes bilateral and trilateral summits with Mr. Biden.
Apart from business and the economy, strengthening ties and defense issues will also be part of the discussion, given the rising tensions surrounding the West Philippine Sea.
Tensions over the WPS have escalated recently, with the Philippine Coast Guard (PCG) complaining of the Chinese coast guard’s continued harassment of local vessels supporting resupply missions to troops stationed at Ayungin Reef.
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Last Sunday, PCG spokesperson Brigadier General Jay Tarriera said the Chinese Coast Guard harassed Philippine vessels within the PCG. The incident, which took place on April 4 last year, took place near Lozul Reef, within the Philippines’ exclusive economic zone (EEZ).
Regarding Ayungin Shoal, China has always maintained that it owns this area even though it is within the Philippines’ EEZ. China also promised to remove the BRP Sierra Madre from Ayungin by the former Philippine president, but Marcos said he was not aware of any such agreement.
