Trade boost draws more Israel investors to Philippines

MANILA, Philippines - Israeli investors are now looking at the Philippines with heightened interest after bilateral trade between the two countries experienced a revival last year.

The Israel Chamber of Commerce of the Philippines said trade activities between the Philippines and Israel, which have not been significant in the past decade, saw a huge jump in 2016 at 22.33 percent to $183.77 million.

Philippine exports to Israel grew 20.37 percent due to an increase in the shipment of digital monolithic integrated circuits, frozen fish fillet, polypropylene in various forms, and tunas, skipjacks and bonito fish.

Philippine imports from Israel likewise rose 23.21 percent on the back of higher imports of materials, accessories, and supplies for the manufacture of dice, tanks and other armored fighting vehicles.

The figures placed Israel as the country’s 37th largest trading partner out of 226 last year.

“Trade between the two countries was negligible in past years, as evidenced by the 0.08 percent compound annual growth rate from 2003 to 2016. Despite the seemingly minuscule trade volume between the Philippines and Israel, the business sector has confidence in the growth and stability of the two countries’ trade relations,” the Israel Chamber of Commerce said.

The group said governments of the two countries are currently working out an investment protection pact to boost investor confidence and trade relations.

“Israeli investors are targeting the Philippines as a possible investment site,” it said.

Israeli businessmen are seeking to further expand their presence in the Philippines and have cited food manufacturing and information technology-business process management industries as the country’s most attractive areas for trade and investments.

The Israel Chamber said the Philippines is seen as a convenient destination given the country’s competitive advantages such as skills and human resources, salary costs, business establishment and growth potential.