THE Philippine Economic Zone Authority (PEZA) said three German companies in the automotive, semiconductor, and pharmaceutical industries are planning to expand their Philippine operations.
In a statement Sunday, the investment promotion agency (IPA) said it found out about the expansion plans after business-to-business meetings on a visit to Germany this month.
PEZA did not disclose the names of the companies but added that one of the companies is already preparing to apply for registration with the IPA.
“We (will) announce the identities of these companies once they file their application with PEZA,” PEZA Director General Tereso O. Panga said.
One of the companies, PEZA said, makes automotive safety sensors in the Philippines.
“They mentioned their plans to expand their operations (and are currently testing) their new products,” PEZA said.
The second company is one of “the world’s largest manufacturers of discrete semiconductors and passive electric components” with automotive, industrial, computing, military, aerospace, and medical applications.
“(It) discussed with PEZA plans to expand its operations in the Philippines to cater to their new products,” the IPA said.
PEZA also met with a German company that makes pharmaceutical laboratory and medical equipment calibrating devices, which is now preparing its application with PEZA.
“PEZA was also able to secure a meeting with one of the world’s biggest pharmaceutical companies that is into life sciences, healthcare, and electronics and with one of the world’s leading car makers headquartered in Germany,” it added.
PEZA was in Germany for a week-long investment mission on May 13–17, during which it attended the IFAT Munich 2024 trade show.
“This event is important to PEZA as we are transforming our ecozones into smart and sustainable locations for investments,” Mr. Panga said.
Citing a report by Sumitomo Mitsui Banking Corp., PEZA said that German companies primarily consider demographics and the availability of supply chain networks when investing in the Philippines.
It added that German companies are also testing the waters on locating outside of China.
“Given this positive outlook for the Philippines, we remain aggressive in our efforts to promote the country as a smart high-tech manufacturing hub and as an enviable investment destination in Asia,” Mr. Panga said.
To date, PEZA houses 37 locator companies with German equity, which accounted for P30 billion in investment and 20,000 jobs. — Justine Irish D. Tabile
