19 March 2014 - The German Asia-Business Association (OAV) lauded the Philippines for its impressive economic performance at the 94th Liebesmahl on March 7 in Hamburg. OAV Chairman and Deutsche Bank co-CEO Juergen Fitschen invited Finance Secretary Cesar V. Purisima as the keynote speaker in recognition of the country’s improved competitiveness and Secretary Purisima’s commitment to economic reforms and good governance.
In his welcome remarks, Mr. Fitschen stressed that the Philippines was proving to be a true success story in the Asia Pacific region, with growth being underpinned by strong fundamentals in contrast to other emerging markets where growth has been artificially created. Mr. Fitschen was especially bullish about growth prospects in the Philippines and he noted that the German business community is gaining a keen awareness of the country’s core strength: its people. Deutsche Bank, for instance, employs more than 2,000 staff at its Deutsche Knowledge Services in Bonifacio Global City.
Speaking extemporaneously before 400 high-level representatives from business and government, Secretary Purisima painted a vivid and detailed picture of the Philippine economy, whose 7.2% growth despite Typhoon Yolanda (Haiyan) proved to be Asia’s second fastest growing economy in 2013. Mr. Purisima highlighted that the government’s good governance platform has translated to good economics and was contributing to a virtuous and self-reinforcing economic cycle.
For example, the government’s credit ratings upgrades have lowered borrowing costs and allowed the government extra fiscal space to increase spending in education, health and social services while local companies are capitalizing on cheaper credit to aggressively invest in infrastructure and industry. As ASEAN’s second largest population and one of Asia’s youngest with a median age of 22, the Philippines is benefiting from a demographic dividend that is creating inflection points for growth in certain industries such as automotive demand. And while many had argued that the country was witnessing a “brain drain”, Secretary Purisima explained that migration was actually proving to be a “brain grain”, where returning Filipinos have been at the forefront of the growth of the shipbuilding, IT and Business Process Outsourcing (BPO), and tourism sectors.
Secretary Purisima noted that in this Asian century, many leading German and global companies were now opting to diversify investments across ASEAN and China. Given the Philippines’ success factors, as well as its central geographic position in Asia-Pacific, its European heritage, and the opportunities afforded by the ASEAN Economic Community, Secretary Purisima emphasized the government’s commitment to engage Germany’s Mittelstand, or small and medium sized enterprises (SMEs) that form the backbone of the German economy. To ensure a sustainable future partnership with the Mittelstand, the Philippines is looking to replicate the success of Germany’s dual education system in creating 100,000 jobs per year. Secretary Purisima’s commitment to bolster this economic relationship was evident when he offered to host the 15th Asia-Pacific Conference of German Business after this year’s edition in Ho Chi Minh City.
For his part, Hubert Lienhard, the newly elected Chair of the Asia-Pacific Committee of German Business (APA), congratulated Secretary Purisima on being awarded Finance Minister of the Year for Asia-Pacific. This marks the fourth consecutive year that Secretary Purisima has received such honors from relevant award bodies.
Mr. Lienhard, in his own remarks, emphasized that the APA was prioritizing equality, partnership and sustainable development in its strategy as it seeks to stimulate greater two-way trade and investments with the Asia-Pacific region. He emphasized that the APA is committed to ensuring that German companies have a strong and local presence in Asia.
Earlier in the day, Philippine Ambassador to Germany Maria Cleofe R. Natividad co-hosted an afternoon tea reception with Mr. Ernst Peter Komrowski, OAV Country Committee Head for the Philippines. Representatives from the private sector, including Deutsche Bank, Hamburg Port Consulting, and the German-Philippine Chamber of Commerce and Industry (GPCCI) discussed economic developments in the Philippines and explored possible future cooperation, including the eventual creation of German Center for Industry and Trade in the Philippines.
The German Asia-Pacific Business Association (OAV), which was founded in 1900 as a lobbying platform for North German trading houses, has become Germany’s nationwide representative in engaging Asian economies. The OAV regularly invites prominent guests from Germany and the Asia-Pacific region. The 2013 Liebesmahl included the participation of Federal Minister of Economics Philipp Rösler and Mongolia’s President Tsakhia Elbegdorj. END
