US firms see Philippines as attractive market amid global pandemic

American firms remain upbeat on the Philippine economy and continue to see the country as an attractive market for US investments in Asia despite the global pandemic.

In an economic briefing held Friday, country and regional representatives of top US firms expressed optimism that the Philippines would be able to hurdle current economic challenges due to COVID-19, noting there are several areas that American investors can tap into, specifically on agriculture, health, business process outsourcing, manufacturing and digital technology. 

Mark Shorney, vice president for operations in Southeast Asia at FedEx, said the logistics firm’s decision to return to the Philippines and expand its operations via the Clark international airport in April 2021 was due to infrastructure improvements under the Duterte administration’s Build Build Build program.

Shorney expects the $30-million gateway facility in Clark to increase its sorting capabilities to 9,000 documents and parcels per hour.

Christopher Matthew Ilagan, Cargill Philippines Inc. corporate affairs director, said the company find encouraging the continuing economic reforms, consistent six percent economic growth and the high number of skilled Filipino workers.  

“We see the largest potential in this market with close to 110 million people with a median age of 20. The domestic market itself provides a lot of opportunities for companies like us,” Ilagan said.

Aftab Ahmed, country officer of global investment bank Citi, said the opportunity in the Philippines is “very large,” adding the company is “very well positioned to participate in this growth.”

Concentrix Corp. president Christopher Caldwell said the company remains committed to the Philippines, noting it made the right decision to choose the Philippines over India as its Asian hub 12 years ago.

“We have never looked back and we are currently happy with our continued investment here as we have not only grown organically but we have purchased a number of companies that have operations in the Philippines,” Caldwell said.

Philippine ambassador to the US Jose Manuel Romualdez said more US firms, considering moving their operations from China to other parts of Asia, are eyeing investments in the country post-COVID pandemic.

In fact, Romualdez said, the country’s diplomatic posts across the US have been receiving queries from potential investors.

“We are confident that there will be a lot of businesses that will be looking at the Philippines in the coming year, especially now, with this pandemic close to, hopefully, will be over sooner than later,” Romualdez said, adding the breakthrough in vaccine trials by Pfizer would hopefully lead to the revival of global economies.

He also welcomed global investment firm KKR’s decision to invest in Pinnacle Towers – a move, he said, would strengthen and expand the Philippines’ telecommunications infrastructure and support the country’s digital transformation.

This is KKR’s second infrastructure investment in the Philippines and fourth overall investment since it entered into the market in 2018.

Romualdez said the investment is “indicative of the country’s commitment and confidence in the country’s global story.” —LDF, GMA News