Red tape hinders Ph investments – German envoy
By J.Lo
“Streamlining processes and reducing red tape is one of the key concerns,” German Ambassador Andreas Pfaffernoschke told reporters persisting red tape is biggest hindrance to expanding investments in the Philippines.
Businesses and investors still have lots of permits to secure to operate in the country, he noted.
To secure these permits, businesses have to deal with different layers and units of government, he added.
There is corruption in certain bureaucratic processes that businesses and investors face, he said.
German companies interested in investing more “need red carpet and not red tape,” he added.
Pfaffernoschke lauded Marcos administration for addressing red tape, saying government is “doing right things” to provide businesses with better regulatory environment.
“We need concrete results on ground and not just words and good executive orders… and we are optimistic that it is going to happen,” he added.
Berlin has been “talking much closely” to Philippines since President Ferdinand Marcos Jr.assumed office, compared to previous administration, he noted.
Political stability is factor in improving investments made by German firms in the Philippines, Pfaffernoschke said.
Political relations between Germany and the Philippines can “flourish” if there is political stability stems from secure and clear economic and political framework “valid for long term, it does not mean martial law…it means found democracy wherein everybody respects rule of law and democracy,” he explained.
Germany remains one of the country’s investment partners with its foreign direct investments (FDIs) reaching nearly $150 million last year, its highest since 2005, according to Department of Trade and Industry.
DTI noted Germany emerged as “leading source” of FDI in 2023 as it contributed P393.99 billion.
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