The Department of Finance (DOF) pushed for greater German investments in the Philippines during the recent German Asia-Pacific Business Association (OAV) Liebesmahl event in Hamburg, Germany, attended by over 500 German business executives of the OAV. The DOF stressed the need for greater business collaboration between the Germany and the Philippines and for the creation of a German House in Manila similar to those in Singapore and Vietnam, which would be of great mutual benefit to the two economies.
With its economic performance, its central geographic position in Asia-Pacific, its European heritage, and the opportunities afforded by the Association of Southeast Asian Nations (ASEAN) Economic Community, the Philippines is out to engage Germany’s Mittelstand, or small and medium sized enterprises (SMEs), that form the backbone of the German economy. The Philippines is looking into replicating the success of Germany’s dual education system in creating 100,000 jobs per year. Lauded at the OAV Liebesmahl event for its impressive economic performance, the Philippines is benefiting from growth in industries such as automotive, shipbuilding, information technology (IT), business process outsourcing (BPO), and tourism.
Germany is one of the Philippines’ top 10 trading partners, the second largest tourist market in Europe, and the biggest source of loans and grants. Germany accounts for 3.3% of total trade from 2008 to 2012, mostly in electronics. It is the country’s 12th largest tourist market, with 70,949 arrivals in 2013, growing by 5.86% from 2012’s 67,023 arrivals. Overseas Development Aid from Germany amounted to US$1.2 billion from 1961 to 2011, mostly on poverty reduction, resolution programs for Mindanao, and environmental concerns. Deutsche Bank employs more than 2,000 staff at its Deutsche Knowledge Services in Bonifacio Global City.
The OAV was founded in 1900 and is Germany’s representative in engaging Asian economies. It regularly invites prominent guests from Germany and the Asia-Pacific region. This year’s Liebesmahl invited the DOF in recognition of the Philippines’ improved competitiveness and its commitment to economic reforms and good governance.
Representatives from the private sector, including Deutsche Bank, Hamburg Port Consulting, and the German-Philippine Chamber of Commerce and Industry (GPCCI) discussed economic developments in the Philippines and explored possible future cooperation, including the eventual creation of German Center for Industry and Trade in the Philippines. The DOF is to host the 15th Asia-Pacific Conference of German Business (APK) in Manila in 2016.
We congratulate the government of the Republic of the Philippines headed by H.E., President Benigno S. Aquino III and the Department of Finance headed by Secretary Cesar V. Purisima, in ensuring a sustainable future economic partnership with Germany and their commitment to achieve a globally competitive economy for the Filipino people in the Republic of the Philippines.