Metro Manila, Philippines – Political uncertainty in the Philippines remains a concern for German investors, although the country’s long-term economic fundamentals continue to attract foreign investment, German Ambassador Andreas Pfaffernoschke said.
Speaking on The Newsmaker, Pfaffernoschke said recent political developments have prompted questions among investors about the country’s direction beyond the current administration.
“The political turmoil that we are observing and the perspectives where we don’t know where the country is heading after 2028 definitely raises also questions about the reliability and security of the investment hub Philippines,” he said.
The envoy said investors continue to see strong opportunities in the Philippines because of its growing economy, expanding middle class, and skilled English-speaking workforce.
However, political stability and predictability remain important considerations for businesses making long-term investment decisions.
Despite the concerns, Pfaffernoschke said he remains optimistic about the country’s outlook.
“I remain optimistic that these things will be sorted out,” he said.
He pointed to Lufthansa Technik’s planned long-term expansion in Clark as evidence that German companies remain confident in the Philippines despite short-term political noise.
“With a perspective of 25 years, a new contract of 25 years, it shows that these short-term reflections are not dominant. Predominant are the long-term perspectives for business, and they are good,” he said.
Germany is the Philippines’ largest trading and investment partner within the European Union, with more than 150 German companies operating in sectors including manufacturing, aviation, semiconductors, automotive components, banking, insurance and pharmaceuticals.
