Volume4.Year2024.
Publisher
AHK Philippinen | German-Philippine Chamber of Commerce and Industry,Inc.8FDoehleHausManila,30-38Sen.GilPuyatAvenue| BarangaySanIsidro|1234MakatiCity MetroManila|Philippines Tel+63285198110 info@gpcci.org www.philippinen.ahk.de
Contributors
YvesAguilos
IsabelleCebu
DeirdreAnneAbibas
LeandroMauricioGumapos AlecxisBiancaLibang LouiseDominiqueArrabe
Photo Credits
Canva
Continuing the momentum from the previous year, 2024 has been great for the German-Philippine business community. Not only did we celebrate 70 longstanding years of our bilateral relations and shared interests, but this year also witnessed the growth and development of our community withbothnewandestablishedmembersalike.
2024 has centered on fruitful collaboration and meaningful partnerships, both of which were key components to the success we have achieved this year and in years to follow. As aresultofthesepartnerships,weareabletofosteraresilient economy able to stand in the midst of different challenges as well as create new opportunities that contributes to its development. Collaboration is also at the heart of the Chamber, envisioned in the different events members and friendswereabletoenjoythroughoutthecourseoftheyear.
In this light, I am more than honored to present the 2024 edition of the German Philippine Business Insight, highlighting the consistent efforts of strengthening GermanPhilippine cooperation within the Chamber and beyond. I would also like to take this opportunity to thank our growing network of sponsors for this year, as well as invite future partnersandcollaboratorsforthenextpublication.
I hope that the insights the audience can gain from this publication serve as a positive glimpse into the supportive German-Philippine business environment, and be enough reason for new prospects to take a step with us in the market.
Dankeschön!
Christopher Zimmer ExecutiveDirector
Economy
Inarapidlychangingworld,thePhilippinesis emergingasadynamiceconomicforce,leveraging modernization,sustainability,andinnovationto navigateglobalchallengesanddriveinclusivegrowth.
snapshotoftheiractivitiesthis2024.
Marking70yearsofdiplomaticrelationsin 2024,GermanyandthePhilippinescelebratea partnershipthattranscendsborders,fostering trade,security,education,andsustainabilityfor mutualgrowthandglobalimpact.
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Increasingglobalemphasisonsustainablesupply chainsistransformingbusinesspractices,with regulationslikeGermany’sSupplyChainDueDiligence ActandtheEU’sCorporateSustainabilityDue DiligenceDirectivesettingnewstandardsfor environmentalandsocialaccountability.
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The German-Philippine Business Insight (GPBI) is an annual publication of the German Philippine Chamber of Commerce and Industry, Inc. (GPCCI) / AHK Philippinen that covers business columns and industry reports featuring the latest socio-economic trends in the Philippines and in the international business community.
GPCCI has made every attempt to ensure the accuracy of the information shared on this publication, the contents have been produced for general information purposes only and may be subject to change. No article or content may be reproduced in any manner without the prior consent or authorization of GPCCI or the authors involved.
StoryContributors:DeirdreAnneAbibas,LeandroMauricioGumapos,andAlecxisBiancaLibang
Theyear2024marksaremarkablemilestonefor GermanyandthePhilippinesastheycelebrate70 yearsofdiplomaticrelations.Whatbeganin1954 as a formal partnership has grown into a robust alliance encompassing shared priorities in trade, security, education, and sustainability. Over the decades,thisrelationshiphasadaptedtoevolving global challenges while fostering a sense of mutual respect and cooperation. From fostering economic growth to advancing environmental resilience and cultural understanding, Germany and the Philippines have built a partnership that goes beyond borders, creating opportunities for their people and strengthening their standing in theglobalarena.
This anniversary not only honors decades of achievementsbutalsosetsthestageforafuture of continued collaboration. Both nations remain committed to addressing critical global issues together, from tackling climate change to ensuring maritime security and promoting innovation in education and workforce development. As they reflect on this enduring partnership, Germany and the Philippines reaffirmtheirdedicationtobuildingasustainable, inclusive, and resilient future that benefits both nationsandinspirespartnershipsworldwide.
The start of 2024 saw an important visit from GermanForeignMinisterAnnalenaBaerbock,who arrived in Manila on January 11 to advance politicalandeconomicties.Hervisitunderscored shared priorities, including maritime security in the West Philippine Sea, vocational training, and healthcare. Meeting with President Ferdinand Marcos Jr. and Philippine Coast Guard officials, Baerbock reiterated Germany’s support for peaceful dispute resolution and securing global traderoutesintheIndo-Pacific.
Thisvisitwaspivotalforeducationandworkforce development in the Philippines. Baerbock collaborated with the Technical Education and Skills Development Authority (TESDA) to strengthen Technical Vocational Education and Training (TVET) programs. Among the key outcomeswasaMemorandumofUnderstanding (MOU) with the German-Philippine Chamber of Commerce and Industry (GPCCI), alongside partnerships with Siemens Inc. and Festo Inc. These agreements introduced the German Dual Training System, equipping Filipino students with skillsforglobalcompetitiveness.
In March 2024, President Ferdinand Marcos Jr. embarked on a significant working visit to Germany, marking the first such trip by a Philippineleaderinadecade.Thisvisitcoincided with the 70th anniversary of diplomatic relations between the two nations, underscoring a commitment to deepening bilateral ties. The trip highlighted the Philippines’ strategic importance toGermany,particularlyasapartnerinASEAN.
During his time in Berlin, President Marcos met with German Chancellor Olaf Scholz to discuss enhancing cooperation in trade, investment, maritime affairs, and workforce development. A key highlight of their discussions was the signing of agreements aimed at strengthening maritime cooperation and facilitating the upskilling of Filipino workers. These efforts are expected to benefit thousands of Filipinos working in Germany, particularly in the maritime and healthcare sectors, by enhancing their competitiveness and aligning their skills with internationalstandards.
The President also participated in the GermanPhilippine Business Forum, hosted by GPCCI in collaboration with the Asia-Pacific Committee of German Business (APA) and the Philippine Trade and Investment Center (DTI-PTIC). This forum brought together key industry leaders and policy makers to explore avenues for economic collaborationandinvestmentsinthePhilippines.
Discussionsattheforumresultedinthesigningof eight strategic agreements, including Letters of Intent and Memoranda of Understanding, which focus on advancing healthcare, agriculture, manufacturing,anddigitaltechnology.
President Marcos also met with leaders of top Germancompaniestoexplorenewopportunities for partnerships. These discussions centered on investmentsinrenewableenergy,healthcare,and infrastructure, as well as potential collaborations inresearchanddevelopment.
On 27 March 2024, the second session of the Philippines-Germany Joint Economic Commission (JEC)convenedafteritsinauguralmeetingin2019.
Chaired by DTI Undersecretary for International Trade Allan B. Gepty and Federal Ministry for Economic Affairs and Climate Action (BMWK)
ParliamentaryStateSecretaryStefanWenzel,The meetingbroughttogetherover70representatives
from various government agencies and the business sector, such as the Philippine Constructors Association Inc. (PCA), IT and Business Process Association of the Philippines, Aboitiz InfraCapital, Inc., Aboitiz Power Corporation, San Miguel Corporation, GPCCI, Bauer, Bosch, Continental, KfW IPEX-Bank Asia Ltd., Lufthansa Technik Philippines, MercedesBenz Group Services Philippines Inc., Start2 Group,TricontiECCRenewablesCorporation,and wpdAG.
The JEC discussed the Philippine-German economic landscape and policy direction, reinforcing the momentum of the free trade agreement (FTA) between the European Union and Philippines. Supported by GPCCI, it further promotes strong economic cooperation in manufacturing, industrial services, energy, construction, infrastructure, information technology-business process management (ITBPM), innovation, startups, vocational education andtraining,andlabor.
Several MOUs were showcased, including one between the Anti-Red Tape Authority (ARTA) and GPCCI aimed at streamlining operations for German enterprises in the Philippines, and another with the MOU signing of the BFW Construction Training Institute NRW to promote theGermanDual-TrainingSystem.
Given the Philippines' strength in manufacturing and services sectors, particularly the high skill levels of Filipino workers, there is also considerable interest in collaborative projects to advance the Philippines Construction Industry Roadmap(PCIR)2020-2030.
Theanticipatedimpactontrade,investment,and economic growth for both Germany and the Philippines is significant. For the Philippines, the streamlined processes and strengthened partnershipsareexpectedtoattractmoreforeign directinvestments(FDIs)boostingsectorssuchas manufacturing,energy,andIT-BPM.
German Defense Minister Boris Pistorius’ threedayvisittothePhilippines,whichbeganonAugust 4,focusedonexpandingdefensecooperationand strengthening economic ties between the two countries. During his meeting with President Ferdinand Marcos Jr., both sides committed to finalizingadefensecooperationagreementwithin theyear,pavingthewayforfutureopportunities in military equipment trade, joint training, and technology exchanges. Germany is looking to positionitselfasakeysupplierforthePhilippines' ongoing military modernization, with potential deals in areas such as command systems, maritime surveillance, and advanced defense technology.
Beyond defense, Pistorius highlighted the importance of securing trade routes in the IndoPacific, particularly in the South China Sea, throughincreasedGermanpresenceintheregion. The Philippines, seeking to upgrade its defense capabilities,viewsGermanyasapotentialpartner inensuringsafeandopenmaritimetraderoutes, akeyinterestforbothnations.
Two German naval ships, the frigate FGS BadenWürttemberg and the support vessel FGS Frankfurt am Main, arrived in Manila last September16forafour-dayportcall,markingthe firstvisitofGermanwarshipstothePhilippinesin over 20 years. This visit, part of Germany's IndoPacific Deployment 2024, demonstrates the country's commitment to maintaining free and openmaritimeroutescrucialforglobaltrade.
German Ambassador Andreas Michael Pfaffernoschkehighlightedthevisitasatestament to the deepening defense cooperation between the two nations and Germany’s dedication to supporting international law, particularly in the SouthChinaSea.
TheGermanNavy’svisitcomesaspartofbroader efforts to enhance ties with strategic partners in the Indo-Pacific, focusing on ensuring secure shipping lanes, which are vital for international trade.Duringtheportcall,thetwonaviesengaged in joint exercises, reinforcing the partnership betweenGermanyandthePhilippines.
StoryBy:AlecxisBiancaLibang
In a world marked by uncertainty and rapid change,thePhilippinesisemergingasabeaconof adaptability and promise. Anchored by steady economic growth and a youthful, dynamic workforce,thenationisrisingtomeetbothglobal challenges and domestic demands. With sectors like manufacturing, services, and agriculture embracing modernization, and initiatives like Industry 4.0 and green technology gaining momentum,thePhilippineeconomyissettingthe stage for sustained progress. Strategic investments in infrastructure and the government’s focus on fiscal policy reform are further solidifying the country’s position as a competitiveandresilientplayerinSoutheastAsia’s economiclandscape.
Contributors:YvesAguilos
Thisarticleexploresthecriticaldriversofgrowth andthestrategiesfosteringresilienceintheface ofinflationarypressures,climatechallenges,and global disruptions. We delve into how advancements in digital transformation, automation, and artificial intelligence are revolutionizing industries and fueling economic productivity. Policy reforms aimed at fostering foreign investment and supporting MSMEs are alsohighlighted,alongsideinitiativesinrenewable energy and sustainable development that align with global trends. With strengthening trade partnerships, such as those with Germany and the EU, the Philippines is not only navigating present complexities but also building a foundation for long-term success, ensuring inclusivity,innovation,andopportunityforall.
The Philippine economy continued its expansion in 2024, supported by domestic demand, public investments, and the government’s strategic efforts to counter inflationary pressures and the impactsofglobaleconomicvolatility.Thecountry achieved a notable GDP growth of 6.3% in the second quarter of 2024, with key contributions fromtheconstruction,trade,andfinancialsectors (Philippine Statistics Authority, 2024). Furthermore, the Philippines benefits from a strong labor market, a young population, and significant remittance inflows, which continue to boost consumer spending and support the nation’seconomicdynamism.
Philippine Statistics Authority (2024)
In 2024, the Philippines saw solid growth across key sectors, with services, especially tourism and BPO, expanding by 6.9% due to a rise in global demand for information technology (IT) services (BangkoSentralngPilipinas,2024).Manufacturing grew by 2.8% in the third quarter, with key contributions from food products at 7.8%, beverages at 5.9%, machinery and equipment (excluding electrical) at 17.5%, and coke and refined petroleum products at 6.8% (Philippine StatisticsAuthority,2024).Foreigninvestmentand
Industry 4.0 technology adoption continue to contribute to this sector’s efficiency gains and outputimprovements.
Key priorities within the Philippine Development Plan2023-2028emphasizeinclusive,resilient,and sustainable economic growth, positioning the country to effectively harness both domestic resources and foreign investment. However, maintaining momentum requires managing inflation, enhancing disaster resilience, and addressingclimatechallengestosecureeconomic gains amid fluctuating global conditions (World Bank,2024).Inaddition,thegovernment’sefforts in fiscal policy reform, digital infrastructure investment,andtargetedsupportformicro,small, andmediumenterprises(MSMEs)areexpectedto sustain economic momentum and support poverty alleviation, especially in underserved regions like Mindanao (Bangko Sentral ng Pilipinas,2024).
Additionally, the Emerging Asia Manufacturing Index shows the Philippines as a stable destinationformanufacturinginvestmentsdueto itsaffordablelabormarket,rankingsecondinthe ASEAN region, and infrastructure development plans, despite initially ranking sixth (ASEAN Briefing,2024).Agriculturegrewmodestly,witha 0.4%increaseasgovernmentmeasuresaimedto mitigate El Niño’s impact on food security. However,thesectorfacesproductivitychallenges, with over 90% of enterprises still relying on lowleveltechnologies.
On 29 April 2024, the German-Philippine Chamber of Commerce and Industry, Inc (GPCCI) hosted the forum “Ushering Industry 4.0 in the Philippine Industrial Landscape,” discussing the foundations of Industry 4.0 in the Philippines, including opportunities and challenges associated with industrial automation,AI,anddigitalization.
The White Paper summarizes the forum's key insights, analyzing the Philippines' status in Industry 4.0 transformation and exploring the opportunities and risks of this shift. It highlights the need for cohesive national policies and strategies in key industries and the labor sector to ensure stability during the transition.
The paper also showcases the Germany's role in advancing the Fourth Industrial Revolution inthePhilippines.Itemphasizestheimpactof Germany’sinitiativesandprogramsalongwith partnerships with the Philippines in upskilling the Filipino workforce. Finally, it offers recommendations for enhancing the industry and labor sectors as part of the Philippines' Industry4.0journey
Emerging business trends in the Philippines for 2024 highlight digital transformation, green technology,andIndustry4.0askeygrowthareas, with the government and private sector emphasizing automation and digitalization to enhance productivity, particularly in manufacturing. Investment opportunities are driven by sustainability trends, including renewable energy, electric vehicle infrastructure, and agri-tech solutions, supported by initiatives liketheElectricVehicleIndustryDevelopmentAct (EVIDA). These advancements position the Philippines as an attractive destination for investors prioritizing innovation, sustainability, andcompetitivenessintheASEANregion.
Germany views the Philippines as a key hub for productionandsalesintheASEANregion,driven by its skilled labor force and expanding infrastructure. In 2023, German foreign direct investment reached $149.89 million, making Germanyaleadinginvestorinsectorslikeenergy, manufacturing, and emerging fields such as renewable energy and mineral processing. Negotiations for an EU-Philippines Free Trade Agreement (FTA) offer further potential to enhance this partnership by reducing trade barriers and strengthening the Philippines’ positioninEUsupplychains.
Inconclusion,thePhilippinesin2024standsata pivotal moment of transformation, harnessing robust economic growth to fuel industrial modernization and sustainable development. By embracing digital innovation, green technologies, andfosteringstrategicinternationalpartnerships, the country is effectively navigating global pressures while unlocking new avenues for investment and progress. As it continues on this path,thePhilippinesiswell-positionedtoachieve long-termresilienceandinclusivegrowth.
StoryBy:Dr.DavidKlebs
In our interconnected world, companies and regulators are increasing placing emphasis on supply chains. Whereas in the past, price and supply security were the main considerations, sustainability aspects such as the environment andhumanrightsarebecomingmoreimportant. Notonlyisthereahigherconsumerdemandfor sustainably sourced products, business partners fromtheEUandG7countriesarealsolookingto enhancetheirownsustainabilityefforts.Inorder to drive this development, several legislative projectsarefocusedoncreatingmoresustainable supplychains.
For instance, the German Supply Chain Due Diligence Act came into force in 2023, which regulates the due diligence process for many German companies. In 2024, the European Union followed suit with the EU Corporate Sustainability Due Diligence Directive (CSDDD). This directive creates a comprehensive framework with uniform standards across the EU, ensuring that companies contribute to sustainable development and support the transition to more sustainable economies and societies. It also aims to create a level playing field, reducing opportunities for regulatory arbitrage.
TheCSDDDprovidesEUmemberstateswithan implementationperioduntil2026,followedbya transitional phase lasting until 2028, during which the directive’s application scope will graduallyextend.Bytheendofthistransitional phase, the CSDDD will apply to EU companies withover1000employeesandover€450million inglobalturnover,aswellasnon-EUcompanies withover€450millioninEUturnover.
These companies must conduct thorough due diligence to assess and address any adverse humanrightsorenvironmentalimpactsresulting from their operations and supply chains. This includes identifying, preventing, and mitigating risks such as forced labor, child labor, discrimination, pollution, and biodiversity loss. Companies must also implement risk management strategies and engage with affected stakeholders to better understand and address the impacts of their business activities. Theseobligations,however,arenotlimitedtoa company’s own actions. Companies must also take the impact of their subsidiaries and business partners into account. If a business partnercausesormightcauseadverseimpacts, companies must seek contractual assurances, make necessary investments and provide required support to mitigate these impacts. If necessary,companiesmayevenneedtolimitor ceasebusinessrelationshipswiththesepartners.
Therefore, the CSDDD’s reach extends beyond companies directly under its scope, affecting a widerangeofbusinesses.
To ensure compliance with the CSDDD, companiesmustperiodicallyreportontheirdue diligence processes, disclose information about their supply chains and outline the measures taken to mitigate risks and their outcomes. Supervisory authorities can investigate and impose penalties for non-compliance. Additionally,companiesmayfacecivilliabilityfor damages caused by failure to comply with the directive.
Sustainability Due Diligence Directive-EuropeanCommission
TheEUCorporateSustainabilityDueDiligence Directive (CSDDD) aims to ensure businesses operating in the EU identify, prevent, and mitigateadverseimpactsonhumanrightsand the environment throughout their operations and supply chains. It represents a shift from voluntary corporate responsibility to mandatory due diligence obligations, promoting sustainability and ethical practices globally.
Scope: Targets large EU-based companies and non-EU firms with substantial operations in the EU, focusing on highimpact industries like agriculture, mining, andtextiles.
Due Diligence: Requires companies to assessrisks,implementpoliciestoaddress humanrightsviolationsandenvironmental harm,andestablishmonitoringprocesses. Governance and Accountability: Mandates directors to incorporate sustainabilityintocorporatestrategiesand decision-making.
Stakeholder Involvement: Companies must engage with affected stakeholders, including workers and communities, in implementingduediligencemeasures.
Penalties and Remedies: Introduces enforcement mechanisms for noncompliance and access to remedies for affectedparties.
This directive aligns with global frameworks suchastheUNGuidingPrinciplesonBusiness and Human Rights and the OECD Guidelines for Multinational Enterprises. By enforcing corporate accountability, the EU aims to strengthen its leadership in advancing sustainableandresponsiblebusinesspractices worldwide.
ThePhilippinesalreadyholdsacompetitiveedge as an early mover in adhering to sustainable practices through its utilization of the GeneralizedSchemeofPreferencesPlus(GSP+). This preferential trade scheme with the EU provides duty-free access to the EU market for variousPhilippineproducts,contingentuponthe country'sadherencetointernationalconventions on human rights, labor rights, environmental protection and good governance. By aligning with these standards early on, Philippine companies are well-positioned to adapt to the CSDDD’s requirements and leverage their existing compliance infrastructure to gain a competitiveadvantage.
Thisproactiveapproachwillnotonlystrengthen theirmarketpositionintheEUbutalsoenhance their reputation as responsible and forwardthinkingbusinesses.
The Philippine-EU Generalised Scheme of PreferencesPlus(EUGSP+)
The EU Generalised Scheme of Preferences Plus (GSP+) grants the Philippines zero tariffs on over 6,000 products, enhancing its access to the EU market and supporting economic growth. Benefiting exports include coconut products, textiles, garments, and processed foods, contributing to €2.7 billion in GSP+ exports in 2021. To maintain eligibility, the Philippines must uphold 27 international conventions on human rights, labor rights, environmental protection, and good governance, monitored by the EU through regularassessments.
Implementing the CSDDD’s obligations presents unique opportunities for Philippine companies. Adheringtohumanrightsstandardscanprovide Philippine companies with a competitive advantage. EU companies will carefully select businesspartnerswithstronghumanrightsand environmental records. Unethical practices will carry a price-tag as they will put EU companies under jeopardy of regulatory intervention and civilliability.Thiswilllessenthecompetitionfrom companies engaging in those practices, giving suppliers more flexibility in their pricing strategies. Similarly to GPS+, the CSDDD will therefore help the Philippines to increase their track-record of promoting good labor practices and human rights on a national level. Strong human rights protection and robust state oversight will provide a significant advantage in theinternationalarena.
Thesamedynamicisexpectedforenvironmental standards compliance. Companies covered by the CSDDD have to develop transition plans for climatechangemitigation,aligningtheirbusiness modelswiththegoaloflimitingglobalwarming to1.5°C.Thiswilldrivecompaniestosourcefrom more environmentally friendly suppliers and boost investments to make local suppliers' production processes more sustainable. Consequently,thetechnologicaladvancementof developingcountriesislikelytoaccelerate.
Asapartner,Germanyisalreadysupportingthe Philippines in becoming more sustainable. Through bilateral and multilateral projects, Germany currently invests around EUR 110 milliononclimateandenvironmentalinitiatives. Additionally,aroundEUR30millionisspendon human rights projects. Further funding is provided by the EU (24% of whose budget is providedbyGermany)throughprojectssuchas theGreenEconomyProgramofthePhilippines.
As sustainability becomes an increasingly important focus for both regulators and businesses, Philippine companies stand to benefitsignificantlyfromaligningtheirpractices withthestandardssetbytheCSDDD.Bybuilding on the foundations established through GSP+, companiescanensureearlycomplianceandthus strengthen their competitiveness in the global market.TheCSDDDpromisesconsiderablelongterm effects, such as increased investments in sustainablepracticesandabettertrackrecordin humanrightsandenvironmentalissues.Withthe support of key partners like Germany, the Philippines can accelerate its progress toward a more sustainable and responsible business environment, ultimately contributing to both national development and the global sustainabilityagenda.
Dr. David Klebs was appointed as Economic Counsellor of the Embassy in August 2022. As such, he is the contact person for all questions relating to the German Supply Chain Due Diligence Act. Before his time in the Philippines, he served as Legal Counsellor and Agent of Germany to the European Court of Justice, litigating many cases of economic, trade,ITandlabourlaw.Before,heservedasjudgein civilmattersinMunich,andasamemberofaMunich districtcouncil.Heissociallyengagedinthechurchin Germany,focusingoninterreligiousdialogues,aswell as is assisting university education on matters of internationalcommerciallawanddisputeresolution.
OverallTotalTradeofthe PhilippineswithGermanyin2023
Source:StatistischesBundesamt
StoryBy:YvesAguilos
Theyear2024marksacontinuationofthedynamic growthseeninGerman-Philippineeconomicrelations over recent years. Building on the foundation set in 2023, businesses in both nations are exhibiting optimism and resilience, even as they tackle persistent challenges. GPCCI has been at the forefront of these developments, providing insights throughitsSpringandFalleditionsoftheAHKWorld Business Outlook. These surveys shed light on how firmsarenavigatingacomplexeconomiclandscape, balancinggrowthopportunitieswithstructuralrisks.
In 2023, optimism was a driving force, with 62% of businesses reporting improved conditions in the Springsurvey.However,theFallsurveyrevealedadip in confidence, with only 38% expressing a favorable view of the local economy. This tempered outlook highlighted the hurdles businesses faced, from regulatory unpredictability to skilled labor shortages andsupplychaindisruptions.
By 2024, the narrative had shifted. Companies leveraged the lessons of the previous year to fosterrecovery,withinvestmentandemployment prospects significantly improving. The ongoing resilience and adaptability of German-Philippine businesses underscore their commitment to sustainablegrowthandinnovation.
These surveys also reflect the evolving economic ties between Germany and the Philippines, emphasizing the role of bilateral cooperation in addressingsharedchallenges.
Whilecautionremainsanecessaryconsideration, theproactivestepstakenbyfirmstomitigaterisks and explore new opportunities present a promisingoutlookforthefuture.
The Spring 2024 survey painted a picture of optimism, with 61% of firms expressing confidenceintheirbusinessdevelopmentforthe next12months.Localeconomicprojectionssaw a notable 17-point increase, and investment intentions rose to 44%. Employment expectations were especially strong, reaching 61%, signaling significant opportunities for workforce expansion. By Fall 2024, confidence remained robust but reflected a more cautious tone.Businesssentimentimprovedfurther,with 58% of firms predicting better business conditions and investment projections rising to 55%. Employment expectations also grew steadily, highlighting sustained potential for job creation.
When compared to 2023, the results demonstrateclearprogress.InSpring2023,62% of firms reported an enhanced business situation,butbyFall2023,confidenceinthelocal economy had dipped to 38%. The rise in investment and employment expectations in 2024signalsarecoveryandrenewedfaithinthe Philippine market. Both 2024 surveys highlight stronger economic optimism compared to the previous year, underscoring the resilience and adaptabilityofGerman-Philippinebusinesses.
Figure1
AHKWBOSurveyPhilippinesResultsFall2022-Fall2024 “Good/Better”answers
The Spring 2024 survey introduced questions on diversification and risk mitigation. Respondents highlighted efforts to expand supplier networks and explore new sales markets as strategies to build resilience.However,theseinitiativesfacedchallenges, including regulatory complexities, high costs, and difficultiesinfindingsuitablepartners.Thisemphasis on diversification reflects the proactive approach of businesses in managing risks and ensuring operationalcontinuityamiduncertainties.
In Fall 2024, the focus shifted to external influences on competitiveness. The survey revealed that sustainabilityhadbecomeastrategicadvantage,with 43%offirmsviewingitasacompetitiveedge.Other factors,suchaslocalcompetitionandshiftsinmarket demands, were seen as neutral or slightly positive influences. These insights underline the growing importanceofintegratingsustainabilityintobusiness operations as a means to enhance competitiveness andalignwithglobaltrends.
Despite the abovementioned optimism, the 2024 surveyshighlightedpersistentrisks:
DiversificationMeasures Spring2024
Figure3
External Factors: Affecting competitiveness ofGerman-Philippinecompanies Fall2024
The trajectory of German-Philippine economic relationsin2024offersvaluablelessonsforthe future.Thefocusondiversification,sustainability, and workforce development has positioned businesses to navigate challenges while capitalizing on opportunities. As 2025 approaches, the emphasis must shift to consolidating these gains and addressing persistentrisks.
ThePhilippineswillholditsmidtermelectionsin 2025, an event that could significantly influence the country's economic and policy landscape. Elections often serve as a pivotal moment for reassessing national priorities, and this is an opportunity for decision-makers to commit to creating a stable and supportive business environment. Policy continuity, coupled with reforms addressing regulatory complexity, infrastructuregaps,andworkforcedevelopment, will be essential to maintain economic momentumandinvestorconfidence.
BilateralcooperationbetweenGermanyandthe Philippines will remain a cornerstone of progress. Opportunities in green infrastructure, technology transfer, and education could pave the way for more resilient and innovative industries.Addressingsharedchallenges,suchas climate resilience and supply chain stability, will not only strengthen ties but also unlock significanttradeandinvestmentopportunities.
Forbusinesses,adaptabilityandforward-thinking strategies are paramount. Leveraging technological advancements, integrating sustainability practices, and exploring untapped markets will ensure competitiveness in an evolving global economy. With collective efforts from the government, private sector, and international partners, 2025 can become a year ofinnovation,collaboration,andsharedsuccess forGerman-Philippinerelations.
GPCCI establishes Information Technology Committee to driveinnovation,knowledgesharinginITindustry
25 September 2024
German Club, Makati City
The Information Technology Committee (ITC) wasformallyintroducedaspartofGPCCIon25 September 2024, with a mission to advance German-Philippinecollaborationinthegrowing ITsector.Duringthelaunch,Mr.MartinBaulig, ChairpersonoftheITC,presentedthe
committee's vision and mission, emphasizing member empowerment through targeted IT education, tools, and training to support their adaptation to evolving technology and policy landscapes.
The event also featured Mr. Dominic Ligot, AI and TechnologyConsultantfromtheInformationTechnology and Business Process Association of the Philippines (IBPAP), who outlined the Philippines' role as a leading hub for IT-BPM services. He attributed the industry's growth to the country’s favorable business climate and talented workforce. Mr. Ligot further stressed the importance of private sector involvement in addressing skillgaps,urgingcompaniestoactivelyshapethefuture oftheITindustrybyinvestinginskillsdevelopmentand unlockingthesector’spotential.
It is with great enthusiasm that GPCCI has established its Information Technology Committeethisyear,designedtoserveasa key resource for our members on all ITrelatedmatters.
Internet of Things (IoT) Conference Philippines
30 October 2024
Withthetheme,“ConnectedEcosysteminBuildingtheIoT-ReadyPhilippines”,the conferencefocusesonthemessageofenablinganinclusiveandcollaborativeIoT ecosystemformoreconnectedcommunities.
GPCCI’s ITC aims to provide a dedicated platform for technology, process insights, and support to equip members with essential policy guidance, relevant training, andpracticalknowledgeofindustrytrends.
Our vision is to empower members to leverage technological advancements for operational excellence in an ever-evolving digitallandscape.
And on the other hand, our goal is to address diverse knowledge needs and prepare members for the challenges and opportunitieswithintheITsector.
Wewarmlyinviteallmemberstojoinusfor upcoming knowledge sessions, policy discussions,andskillsworkshops.Together, wecandriveinnovationandstrengthenour sector’simpact.
07 November 2024
GPCCI IT Committee Vice Chairperson Tobias Rast attended the event which explored topics on cloud-native, managed services, big data, cybersecurity, open source,andAItechnologies.
Mr. Martin Baulig GPCCI IT Committee Chairperson
On 5 September 2024, representatives from GPCCI and the German Embassy paid a courtesy visit to Secretary Frederick Go, Special Assistant to the President for Investment and Economic Affairs (SAPIEA). The meeting centered on strengthening German-Philippine bilateral relations, with a focus on advancing joint economic cooperation. Key topics discussed were the challenges faced by the business community and the growing role of digitalization in streamlining business processes, which is becoming increasinglyvitaltoenhancingefficiencyandfostering economicgrowthinbothcountries.
GPCCI Vocational and Training Committee (VTC) and PAC jointly organized the event "Ushering Industry 4.0 in the Philippine Industrial Landscape" on 30 April 2024. The event featured insightful presentations from Ms. Grace Baldoza of the Department of Labor and EmploymentBureau of Local Employment, and Dr. Rafaelita Aldaba of the Department of Trade and Industry. It focused on the opportunities and challenges of the local labor sector as outlinedinnationaldevelopmentplans,whileemphasizing the importance of research and development to support thecountry’stransitiontothe4thIndustrialRevolution.
The Policy and Advocacy Committee (PAC) meetingorganizedbyGPCCIon02April2024 centered on the reforms introduced by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The discussion focusedontherecommendationsoutlinedin the CREATE MORE (Maximize Opportunities for Reinvigorating the Economy) Bill, examining their potential impact on businesses. Additionally, the meeting provided an update on the recent initiatives undertaken by PAC and GPCCI, highlighting ongoing efforts to support economic growth andadvocacyforbusiness-friendlypolicies.
20 August 2024 | German Club, Makati City
The PAC hosted the event titled "Exploring Opportunities on ResponsibleMineralSupplyChains"on20August2024,which highlighted the Philippine mining sector's commitment to responsible mining within the framework of the Minerals SecurityPartnership(MSP).Itunderscoredtheimportanceof enhancing the Philippines' value within the global supply chainthroughstrategicinvestmentsandpartnerships.Italso called for greater collaboration between the Philippines and the European Union to foster a sustainable and responsible mineral supply chain, ensuring long-term growth and environmentalstewardship.
15 October 2024 | via Zoom
On 15 October 2024, the GPCCI Policy and Advocacy Committee (PAC) convened a meeting focused on the emerging opportunities presented by the newly enacted Government Procurement Act (NGPA). The session was attended by key representatives from the business community and government authorities to discuss the implications of the newly signed legislation. The dialogue emphasized the role of the NGPA in unlocking new opportunities for foreign investment, fostering publicprivate collaboration, and driving innovation, all while promoting sustainable procurement practices within the country.
The German-Philippine Business Action Portal (GPBAP)representsamilestoneinfosteringefficiency and transparency in business transactions between German and Philippine enterprises. Developed through GPCCI’s partnership with the Anti-Red Tape Authority (ARTA), the GPBAP provides a bilingual platform for gathering and addressing business concerns with government agencies, aiming to reduce bureaucratic hurdles and enhance ease of doingbusiness.
The journey began in June 2023 with a luncheon forum featuring ARTA's eBOSS initiative, followed by a stakeholder forum in October that deepened collaboration. The partnership was formalized in November 2023 with the signing of an MOU, establishing GPCCI as an ARTA Champion. A year of consultations and development culminated in the GPBAP’s launch at the Joint Economic Forum in September 2024, marking a new era of streamlined businessrelations.
The GPBAP has already made a significant impact by resolving several challenges faced by businesses within months of its launch. Its success underscores the importance of public-private collaboration in enhancing the ease of doing business. As a first-of-its-kind initiative inthePhilippines,ithassetabenchmarkforchambersof commerce and government agencies in creating innovativesolutionstosupportbusinessgrowth.
ThispartnershipearnedGPCCIrecognitionatARTA’s2024 Ease of Doing Business Convention, where GPCCI President Marie Antoniette Mariano accepted the award, reaffirming the Chamber’s commitment to creating a competitive and efficient business environment in the Philippines.
The GPCCI Policy and Advocacy Committee (PAC) remains dedicated to supporting the business community by enhancing the regulatory framework to foster growth, innovation, and efficiency in the Philippine business landscape. We have actively engaged in discussions on key legislative reforms that affect the Philippine foreign investmentlandscape.
Our initiatives include launching the German-Philippine Business Action Portal (GPBAP), a first-of-its-kind platform in the Philippinesaimedatstreamliningbusinessgovernment transactions by gathering communityfeedback.
Asoneofthefirstchamberstopartnerwith the Anti-Red Tape Authority (ARTA), we are proudofGPBAP’simpactsinceitslaunchin September 2024, already helping resolve challenges with various government agencies.
Weremaincommittedtoadvocatingpolicies that drive progress and innovation across industries.
Dr. Marian Majer GPCCI Policy and Advocacy Committee Chairperson
11 April 2024
Raffles Fairmont Makati
GPCCI'sAnnualGeneralMeetingofMemberstook place on the 11th of April, 2024, where it saw the celebrationofthenewboardofdirectorsforatwoyear term until 2026. GPCCI's loyal sponsors and supportive members of the Chamber were also appreciated and given thanks during the event, highlighting their presence that was crucial to its successinpreviousyearsandthestrengtheningof German-Philippine relations in years to come. The AGM After Dark shortly followed the program, where guests were able to socialize and establish new connections with other attendees at the Rafflesrooftopdeck.
We are delighted to announce that Mabuhay Germany is happeningin2025!
Mabuhay Germany bridges the harmony between business and culture by initiating networks since 2008. For years, its success has always been a collaborative effort with the Chamber and its stakeholders. With this, GPCCI encourages members and friends to also include Mabuhay Germany in their plans for next year! The Chamber hopes to see another successful Mabuhay Germany™ through shared efforts and vision! See you there, members and friends!
15 November 2024
Mt. Malarayat Golf and Country Club, Lipa, Batangas
ThehighlyanticipatedGPCCI'sGermanAmbassador'sCup 2024 took place on November 15, at the scenic Mt. MalarayatGolfandCountryClubinLipa,Batangas.Players were warmly welcomed by GPCCI Executive Director, Mr. ChristopherZimmer,tokickofftheevent,andweregifted fresh tournament kits courtesy of Allianz PNB Life Insurance to support them throughout the course of the tournament. Mr. Mark Ian Espiritu, representing Turkish Airlines, received the coveted title of GGAC 2024 Champion. To continue the celebrations, Physicians for Peacewasalsoawardedasthisyear'sGGACbeneficiary,a non-profit organization providing assistive healthcare for thoseinneed.TheywererepresentedbyMs.LyneAbanilla and Dr. Josephine Bundoc at the tournament, who received the donation and support from GPCCI and the GermanEmbassy.
06 June 2024 | Mess Hall, Makati City
On June 6, 2024, GPCCI hosted the Abgrillen zum Sommerende, an interactive event to commemorate the end of summer. Guests enjoyed a live-grilled menu alongside indispensable German beer to pair with. They were also able to indulge in brilliant music from a live band alongside icebreaker activities and networking gimmicks. The newest board member of GPCCI, Mr. Tobias Rast, had the honor of opening the event. In attendance were GPCCI President, Ms. Marie Antoniette E. Mariano, and the German AmbassadortothePhilippines,H.E.AmbassadorAndreasPfaffernoschke.
19 September 2024 | Seltsam Rooftop Bar, Makati City
GPCCI hosted the after-work party entitled "Feierabend: Sundowner by the Skyline" last September 19, 2024, to mark the end of the German Summer. Derived from the German saying that states the end of a workday and the start of a relaxing evening, guests were able to celebrateandinteractwithoneanotherovergoodconversations,food, andbeer.Attendeeswerealsoabletoparticipateinthe"BusinessCard Bingo" game, where they were tasked to collect business cards of a personfittingspecifiedcriteriainexchangeforraffleentries.
Havingengagedmembersplaysavitalrolein the success of GPCCI. As a Membership Committee, we strive to create an environment where each member feels included, can contribute, and lobby their interests, and is an integral and valued part of this organization. Initiatives and services (i.e. marketing opportunities, networking events, trade fair participation, and event management consultancy) encourage member-to-member and member-to-GPCCI interactions to create synergies and added value, which can be described by the simplifiedequation1+1>2.
By demonstrating an outstanding service attitude,weareonlythenabletosupportour members in establishing effective business connections, building relevant networking platforms, and optimizing their reach to differentstakeholderswithinandoutsidethe network. The Membership Committee regularly evaluates the offered services so that we can continuously develop our portfolio further and customize them to the needsofourmembers.
Withmuchenthusiasm,wewouldliketotake this opportunity to invite everyone to take part in the upcoming Mabuhay Germany 2025.Thiseventaimstobridgetheharmony between business and culture by initiating networks since 2008. We hope and look forward to your support and collaborative effortinitnextyear!
Your active participation is crucial to foster anenvironmentwherebusinessesofallsizes can thrive. Together, let’s build a resilient economic future through German and Philippinebusinesspartnerships.
Dr. Christian Scheld
GPCCI Membership Committee Chairperson
Memorandum of Understanding signed with TESDA This agreement focuses on the promotion and support for enterprise-based trainings in the Philippines towards qualityskillsdevelopment
The Vocational Training Committee (VTC) of the German-Philippine Chamber of Commerce and Industry(GPCCI)continuestoserveasaplatform for member companies to exchange and collaborateonvocationaltraininginitiatives.The Committee has spearheaded essential certification and training programs tailored to meetindustryrequirementsandequipindividuals withpractical,job-readycompetencies.
This year, we proudly launched ProRecognition, an innovative program that facilitates the recognitionofqualificationsinGermany.
By aligning global standards, this initiative expands career opportunities for professionals and enhances their competitiveness in internationalmarkets.
Porsche After Sales Vocational Educational Program
GPCCI organized Porsche After Sales Vocational EducationalProgram’sfinalexaminationinDubai
An upcoming partnership with SM Jobs aims to develop targeted training initiatives that can better equip the workforce with the skills that businessesneed.
Skills Expert Program: The Chamber intends to scale up its efforts in dual education to involve moreprivatesectorinvolvementindeveloping
The VTC remains committed to its core mission of upholding the integrity of vocational training in the chamber and continues to provide a platform for networking, develop training concepts, and foster collaboration between private sector, training institutions, and governmentbodies.
GPCCI remains steadfast in supporting efforts to upskilltalent,fostermeaningfulconnections,and advocatefortheneedsofstakeholders,trainees, and industries. Together, we aim to strengthen the vocational training system and cultivate a skilled workforce that drives economic growth andsocietalprogress.
Mr. Tristan Arwen Loveres GPCCI Vocational Training Committee Chairperson
25 January 2024
German Club, Makati City
The JMC Meeting for January focused on the developments in Danish shipping industry as discussed by Ms. Anne H. Steffensen, the CEO of the Danish Shipowners’ Association. It was also during this meeting thatwewelcomedtheFrenchChamberofCommerceand IndustryinthePhilippinestotheJMC.
29 February 2024
German Club, Makati City
For the February meeting, Capt. Khymer Adan T. Olaso, theCongressmanfromthe1stDistrictofZamboangaCity, discussed his unique experiences as a former seafarer and his humble beginnings as a public servant. He also presented some salient features of the Magna Carta for Seafarers.
30 May 2024
German Club, Makati City
Philippine Coast Guard Spokesperson Commodore Jay Tarriela tackled the government strategy in addressing theconflictandgeopoliticaltensionintheWestPhilippine Sea(WPS)fortheJMCmeetinginMay.
27 June 2024
German Club, Makati City
The plans, programs, and commitments of the Department of Migrant Workers (DMW) in the maritime sector was the focus of the JMC Meeting for June with DMW Assistant Secretary JeromePampolinaasthespeaker.
29 August 2024
German Club, Makati City
Maritime Industry Authority (MARINA) Administrator Sonia B. Malaluan, during the committee meeting in August, discussed the role of MARINA, their 10-point agenda, and the potential investment opportunities in the Philippines specifically in the shipbuildingandshiprepairindustry.
26 September 2024
German Club, Makati City
For the September committee meeting, International Association of Shipping Lines President Patrick Ronas discussed about the development plans, major infrastructure projects, the role of technology in the supply chain, and the impactoftheRedSeacrisisinthemaritimeindustry.
31 October 2024
German Club, Makati City
Kabayan Partylist Representative Ron P. Salo discussed the salient features of the Magna Carta for Seafarers and elaboratedonthelegislation’simpacttotheseafaringindustry duringtheJMCMeetingforOctober.
28 November 2024
German Club, Makati City
Mr. Laurent Martens, CEO of Armateurs de France, discusses variousupdatesabouttheFrenchshippingindustryduringthe JointMaritimeCommittee(JMC)MeetingforNovember.
The JMC is a joint committee with members from the German-Philippine Chamber of Commerce and Industry, the Dutch Chamber of Commerce in the Philippines Inc. - DCCP, the Nordic Chamber of Commerce of the Philippines, the Philippine Norway Business Council, and the French Chamber of CommerceandIndustryinthePhilippines.
ChambersoftheJMC
The Joint Maritime Committee (JMC) continuestostandasadedicatedforumfor addressing and representing the diverse interests of the maritime industry. Formed incollaborationwiththeGerman-Philippine Chamber of Commerce and Industry (GPCCI),theDutchChamberofCommercein thePhilippines(DCCP),theNordicChamber ofCommerceinthePhilippines(NordCham), and the Philippines Norway Business Council (PNBC), the JMC proudly welcomed the French Chamber of Commerce and IndustryinthePhilippines(CCIFP)asanew memberinJanuary2024.
This year, JMC had eight (8) productive meetings that tackled issues and developments on shipping lines, seafarers’ rights, geopolitical tensions, migrant work conditions, and the maritime industry at large.
We remain committed in participating in collaborative dialogue and engaging discussions to represent our stakeholders and their interests in seizing opportunities and navigating challenges in the maritime industry.
Mr. Tore Henriksen Joint Maritime Committee Chairperson
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