Australia is strengthening ties with the Philippines as a trade and investment partner by seeking to expand mining investment opportunities and also grow the $8.7 billion in two-way investment generated in 2023.
According to Austrade, the Philippines has $1.3 trillion in largely untapped deposits of gold, copper and other minerals. Recent changes to mining permits and open-pit mining offer investment opportunities.
Investment deal teams in Australia and Southeast Asia will work closely with investors and stakeholders to support their investment journeys. They will seek to also grow the two-way trade in goods and services with Australia’s 20th largest trading partne, which was valued at $10.2 billion last year.
Last month, a delegation of Australian investors and businesses visited the Philippines on a two-day mission to boost two-way investment and trade ties.
The delegation comprised 14 organisations, with institutional investors representing $1.7 trillion in funds and assets under management. The corporate delegates had a collective market capitalisation of $120 billion.
As the fastest-growing economy in Southeast Asia, with the second largest population, the mission aimed to explore opportunities in infrastructure, green energy transition, resources and agribusiness in the Philippines.
The delegation also aimed to deepen understanding of the Philippines’ macroeconomic, fiscal, and sector-specific policies.
Key policy discussions covered emerging pathways for foreign investment. The Philippine Government has undertaken steps to open the economy to foreign investment. This is part of its plan to reach upper middle-income status by 2025 and eradicate poverty by 2040.
A review of the Public Services Act has opened up sectors like mining and agrifood to foreign participation. Renewable energy projects that can be 100% foreign-owned emerged as a significant opportunity.
The delegation met with the Department of Industry, National Economic and Development Authority (NEDA), and the Central Bank. Discussions focused on sector-specific opportunities in agriculture, infrastructure and energy.
Two-way trade and investment is supported by the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Regional Comprehensive Economic Partnership (RCEP) Agreement. Australia and the Philippines are also pursuing high-standard commitments related to trade, supply chains, clean energy, and anti-corruption and tax through the Indo-Pacific Economic Framework (IPEF).
The mission was led by Shemara Wikramanayake, Business Champion for the Philippines and CEO and Managing Director of Macquarie Group. Macquarie Group has operated in the Philippines for over 20 years and has over 1,000 staff in Manila.
Austrade CEO Xavier Simonet and Export Finance Australia (EFA) Managing Director and Chief Executive Officer John Hopkins also joined. EFA is administering the Australian Government’s new $2 billion Southeast Asia Investment Financing Facility.
The Australia-Philippine relationship already runs deep. More than 400,000 Australians are of Filipino descent, making them Australia’s fifth largest diaspora community.
Source: Mining
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
