CONCERNS about Philippine regulation and infrastructure need to be resolved to unlock Australian investment in Philippine mining and renewable energy ventures, according to Macquarie Group.
Speaking on the sidelines of the Australian Business Mission to the Philippines last week, Macquarie Managing Director and Chief Executive Officer Shemara Wikramanayake cited the two items as the top requirements for Australian businesses.
She said that the Philippines is rich in copper, gold, and cobalt, but little foreign investment has come in to develop these resources.
“We’ve got mining companies here that are talking with Philippine partners on how they can together develop these reserves, and there’s massive capital investment that they need in developing these, so they need a certainty of framework to invest in,” she said.
In renewable energy, she said investors want to be reassured on off-takers for the power produced and the strength of the project pipeline.
“Permitting needs to be sorted out, so you can’t have it within the time frame. Transmission infrastructure is needed as you produce more remote energy,” she said.
“These things are all complex … We’re being very disciplined and patient and thinking through what are the outcomes actually that are going to be good for the Philippines, what do we need to do to deliver that, which steps and how do we work with all the partners,” she added.
Ms. Wikramanayake led a 14-member delegation of Australian businesses to the Philippines.
Last week’s visit featured meetings with senior government officials, Philippine conglomerates, and Australian companies long established in the Philippines.
The delegation included representatives from Australian Super, Future Fund, IFM Investors, Investible, Plenary Group, EMR Capital, ANZ, Telstra, Bega Foods, Costa Group, GrainCorp, Sunrice, and Pristine Pacific, who inquire about possible agrifood, infrastructure, transportation, and energy projects.
Australian Ambassador to the Philippines Hae Kyong Yu said that the Australian government aims to launch a 45 million Australian dollar economic growth development plan for the Philippines by early 2025.
“We made a conscious decision to use part of our development money to focus on economic growth. And that is the program over five years that we are finalizing at the moment,” she added.
She said that the program is being co-designed with the Philippine government to work out the country’s priorities.
“A big chunk of this is really about helping the Philippines achieve good economic reforms. So it’s really tooling them with the appropriate skills, expertise, and knowledge, and even ideas based on Australia’s experience,” she added.
As of 2023, 250 Australian companies are operating in the Philippines, with staff of 44,000.
Trade between the two countries at the end of 2023 totaled P378 billion, with two-way investment amounting to P321 billion. — Justine Irish D. Tabile