An executive of the Italian Chamber of Commerce in the Philippines Inc. recently highlighted the growing interest of Italian businesses in investing in the Philippines. Speaking on SMNI’s weekly public affairs program “Business and Politics,” Lorens Ziller, the executive director of the chamber, emphasized that Italian firms are increasingly looking at the Southeast Asian region as a potential market.
According to Ziller, major economies, including Europe and Italy, have taken notice of the region’s potential. In the past, Hong Kong and Singapore were the preferred investment hubs within the region, with the Philippines often considered as just an additional or secondary market. However, this perception is changing as businesses now recognize the region’s strong macroeconomic data and its potential for the highest economic growth worldwide.
Ziller further explained that the Philippines’ young population contributes to the long-term and sustainable growth prospects of the country. The Italian Chamber of Commerce in the Philippines Inc. has Filipino member companies that either have Italian products or utilize Italian machinery, providing avenues for collaboration and partnership.
Additionally, the chamber also includes French and other European companies as members, highlighting the organization’s commitment to promoting business excellence in various sectors. Recently, the chamber has been assisting Filipino companies in finding export markets, especially with the Philippines’ participation in the Regional Comprehensive Economic Partnership free trade agreement.
Despite the growing interest, Ziller acknowledged that there are challenges in attracting more Italian companies to invest in the Philippines. He cited the competition from countries like Thailand and Vietnam, which offer better benefits to businesses, such as free land and extended tax holidays for setting up factories or production companies.
According to Ziller, Philippine companies need to enhance their competitiveness and level the playing field with regional rivals. While the Philippines may appear promising on paper, there are several factors that deter potential investors. Red tape and the high cost of electricity are among the issues that need to be addressed to create a more conducive environment for investment.
Overall, the growing interest of Italian businesses in investing in the Philippines reflects the positive economic outlook and potential of the Southeast Asian region. As the region continues to attract major economies, it is essential for the Philippines to address the challenges and provide an attractive investment climate to capitalize on this interest.
Source: The Manila Times
