German businesses continue to view the Philippine market with “confidence” as a viable market for growth, officials from the German Embassy and the German-Philippine Chamber of Commerce and Industry (GPCCI) said on Thursday, October 16.
This, even as some analysts and Philippine ambassadors warn that recent corruption scandals – and the uncertainty of actual sanctions – could hurt the country’s image to foreign investors.
When asked how the latest corruption issue affected the perception of German investors, German Embassy Deputy Head of Mission Mathias Kruse said the embassy could not comment on the specific perception of German businesses. But he did, however, say the government’s anti-graft efforts are a positive step toward progress and “always a good sign.”
‘It’s always a good sign if the government takes on these problems,” Kruse said at a press conference promoting the GPCCI’s upcoming trade fair. “Because they are somehow in the way of further development here.”
“We hope to see this being pursued with all rigor and determination it deserves,” the German envoy said.
Long-term prospects. Citing latest available data, Marie Antoniette Mariano, the chamber’s president, said German firms operating in the country want to continue to expand and invest in Filipino workers.
‘The German companies continue to show confidence in the Philippine market,’ Mariano said, citing the latest World Business Outlook survey, a biannual poll conducted by the network of German Chambers of Commerce Abroad (AHK) that gauges the business expectations of German firms operating overseas.
According to the Spring 2025 edition of that survey conducted March and April - where nearly 130 German-affiliated companies in the Philippines participated – 65% of respondents expect improved business development over the next 12 months, while 58% said their current local situation is favorable. At least 44% of firms indicated plans to increase investments in their Philippine operations.
The German-Philippine chamber counts around 300 member companies, spanning sectors such as manufacturing, information technology, logistics and renewable energy.
The Fall 2025 edition of the World Business Outlook survey – which will cover the period when the government launched investigations into corruption in flood control projects – has yet to be released.
Trade and ties
During the briefing, Kruse and Mariano both highlighted that economic relations between Germany and the Philippines remain ‘thriving,’ spanning business, development cooperation and cultural exchange.
‘Our relations with the Philippines are thriving in terms of economic activity,’ Kruse said. ‘We have a huge number of German companies active here, and we are partners in international fora – value partners – because we are on the same page when it comes to international politics.’
Germany is the Philippines’ “most important trade and investment partner” among all EU member states, according to Germany’s foreign ministry, owing to strong bilateral flows.
In 2024, Germany exported about $2.1 billion in goods to the Philippines, while Philippine exports to Germany reached roughly $2.5 billion.
The chamber’s ‘Mabuhay, Germany’ fair on November 7 and 8 at BGC High Street Central Square will showcase exhibitions of German products and German food and beverage showcases. There will also be job opportunities and on-the-spot recruitment as well as cultural programs.
In the past months, various agencies in government and Congress have been investigating what has been called the country’s “biggest corruption scandal in history,” involving an estimated P545 billion in flood control projects funded between July 2022 and May 2025. Environmental group Greenpeace estimates the actual losses could reach P1.089 trillion when accounting for all climate-tagged expenditures potentially lost to corruption since 2023.
Government engineers have testified that officials and contractors systematically diverted billions of pesos through non-existent projects and deliberately substandard public works projects.
Last month, corruption cases were filed against 20 personnel of the Department of Public Works and Highways-Bulacan 1st District Engineering Office, one of the first set of complaints tied to the investigations on anomalous flood control works.