News Mar 12, 2024 05:08 AM EDT

Tech Boom in the Philippines? US Investments Could Signal Lucrative Opportunities

By April Fowell

The United States Commerce Secretary Gina Raimondo stated during an official visit to Manila on Monday that American businesses are expected to announce investments totaling more than $1 billion in the Philippines.

Tech Boom in the Philippines? US Investments Could Signal Lucrative Opportunities

The United States Commerce Secretary Gina Raimondo stated during an official visit to Manila on Monday that American businesses are expected to announce investments totaling more than $1 billion in the Philippines.
(Photo : by Anna Moneymaker/Getty Images)

This two-day trade and investment expedition, which is the first of its type for the Philippines, is being led by Raimondo. Executives from 22 different organizations, including Microsoft, KKR Asia Pacific, Visa, United Airlines, and Google, are part of the group.

Huge Investments in Tech

According to her, the investments would be made in digitalization, electric cars, and solar energy.

United said this week that it would begin operating additional flights on July 31 from Tokyo-Narita to Cebu, Philippines.

The United States' endeavors to enhance its economic relations with the Philippines are congruent with heightened defense cooperation. Presidents Joe Biden of the United States and Ferdinand Marcos Jr. of the Philippines are eager to retaliate against what they perceive to be China's aggressive moves in the South China Sea and in the vicinity of Taiwan.

After meeting with Marcos at the presidential palace, Raimondo spoke at a joint briefing with Philippine officials and stated that Washington is committed to growing trade and investment in the Philippines, as well as in the larger Indo-Pacific region through the Indo-Pacific Economic Framework, a 14-nation group led by the United States.

Raimondo restated that although Washington will not grant China access to its cutting-edge technologies, the United States had no intention of "decoupling" from Beijing.

Raimondo emphasized her commitment to safeguarding American interests, particularly in protecting advanced technologies like semiconductors and artificial intelligence from being accessed and exploited by China for military purposes. She reiterated the importance of preventing China from gaining access to such technologies, which are crucial for national security.

Furthermore, Raimondo reaffirmed the enduring alliance between the United States and the Philippines, describing it as "ironclad." This reaffirmation underscores the significance of the 73-year-old mutual defense treaty between the two nations, which positions the Philippines as Washington's oldest treaty ally in the Asia-Pacific region.

Raimondo is scheduled to visit Thailand for two days of meetings after her visit to Manila. She will guide American citizens. President's Export Council to find ways to improve collaboration between the two nations in sectors including manufacturing and supply chain resilience.

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More Opportunities for Americans and Filipinos

Investments by the United States in the Philippines can yield numerous benefits for both nations. For the United States, investing in the Philippines provides access to a dynamic market in Southeast Asia with a growing consumer base. The Philippines boasts a young and educated workforce, making it an attractive destination for American companies seeking to outsource operations or establish subsidiaries. Additionally, investing in key sectors such as technology, infrastructure, and renewable energy can foster economic growth and create employment opportunities in both countries.

For Filipinos, US investments bring much-needed capital and expertise to spur development and modernization across various industries. This can lead to improved infrastructure, better access to essential services such as healthcare and education, and the transfer of knowledge and skills. Moreover, increased foreign investment can stimulate economic growth, attract additional investments from other countries, and enhance the competitiveness of Filipino businesses in the global market.

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