Germany trip yields $4 billion business deals

Marcos working visit

BERLIN – At least $4 billion or P220 billion worth of investment deals were secured by the Philippines during President Marcos’ three-day working visit here.

Marcos witnessed the signing of the agreements during the Department of Trade and Industry-organized Philippine-Germany business forum at the Marriott Hotel here on Tuesday night (Manila time).

“We have secured business deals worth $4 billion in Germany, the EU’s economic powerhouse,” Marcos said in a Facebook post  yesterday morning.

“Last year’s significant investments from Germany underscore their confidence in us as a key partner in the Asia-Pacific. We eagerly welcome further collaborations in climate action and energy transition,” he said.

Of the eight agreements signed, three are letters of intent (LOI) from different German companies, two memoranda of agreement (MOA) and three memoranda of understanding (MOU), according to the Presidential Communications Office.

The first LOI is intended to develop a partner hospital into a training center that will support the training needs of other lower tier hospitals, while the second is for the development of an innovation think tank hub and spoke model to address the strategic target of an inclusive innovation ecosystem in the Philippines.

The third LOI is for a strategic and digital partnership in healthcare with the Department of Health aimed at revolutionizing healthcare in the Philippines, ensuring safety, quality, accessibility and affordability.

Meanwhile, an MOA was forged between the Philippine government and a German company to rehabilitate, reclaim and recultivate degraded farmlands in the Philippines.

The second MOA aims to expand potential collaborations in mobility solutions, software services, manufacturing, factory automation, logistics services, energy, security and safety systems for buildings, consumer appliances and healthcare.

An MOU, on the other hand, was signed for the establishment of a fully integrated solar cell manufacturing facility in the country.

Another MOU intends to build a manufacturing facility that will modify automobiles into “high-end 1 of 1 version” and armor-protected cars, as well as manufacture military-grade armored personnel carriers for the Asian market.

The third MOU is for the setting up of data centers that will host a digital insurance platform to serve the Philippines and other countries in the Association of Southeast Asian Nations as the group’s main expansion outside the European Union.

Speaking before German and Filipino businessmen, Marcos emphasized the importance of further fostering strong business relations with Germany, now the world’s third largest economy and the biggest in the EU.

Germany is also a global force in technology and innovation.

Marcos is the first Philippine president to visit Germany and the first to address German business leaders in 10 years.

The President invited German businessmen to invest in the Philippines, including in the Maharlika Investment Fund, the country’s first sovereign wealth fund, citing the institutional and structural changes he has implemented to improve the ease of doing business.

In 2022, Germany ranked as the Philippines’ 12th trading partner, 10th export market and 15th import supplier.

The Philippines’ total trade with Germany reached $4.7 billion in 2022, with $2.8 billion in exports and $1.9 billion in imports.

Germany is also the Philippines’ top trading partner in the European Union.

Marcos was invited by German Chancellor Olaf Scholz for a working visit. He arrived here on Monday night.

The President was scheduled to fly to Prague, Czech Republic Wednesday night (Manila time) for a two-day state visit upon the invitation of Czech Republic President Petr Pavel .

He and his delegation are expected to arrive in Manila on Saturday afternoon.