Philippines lags behind ASEAN peers in attracting EU investment

The ASEAN region continues to be a preferred investment destination for European Union investors, although the Philippines is not among the top choices, according to a survey by the EU-ASEAN Business Council.

The EU-ASEAN Business Sentiment Survey reveals that European business confidence in ASEAN remains strong despite global trade uncertainties, with many expecting to expand operations in key markets like Vietnam, Indonesia, Malaysia, and Thailand.

Vietnam, Indonesia, Thailand, and Malaysia were cited as the top four countries for EU business owners to expand their operations, with 66%, 60%, 57%, and 57% respectively.

The Philippines was ranked lower, with only 40% of EU business owners planning to expand operations there, while 48% were undecided and 12% planned to contract operations.

A significant portion of European businesses feel that EU institutions could do more to support their interests in the region, indicating a need for increased ambition in economic diplomacy and trade policy.

The survey suggests that progress on free trade agreement negotiations with Malaysia, the Philippines, and Thailand could further bolster European investment and engagement in Southeast Asia.

The Philippines will have to do more to promote itself as an investment destination to attract investment from the European Union (EU).