British Chamber hopes to regain manufacturing growth; cites opportunities

Philstar.com

December 18, 2025 | 11:41am

The Philippines remains an attractive manufacturing hub in the region, despite manufacturing activity declining to a four-year low in November.

According to the British Chamber of Commerce Philippines Executive Vice Chair Chris Nelson, citing opportunities in the country’s ecozones that provide fiscal and non-fiscal incentives to British and other foreign companies. 

The S&P report identified several factors contributing to the decline in production, citing low demand, new orders and output, employment, transit time and weather disruptions.

Nelson cited the work with the Philippine Economic Zone Authority (PEZA) and its work during the Philippine-British Investment Forum, which highlighted opportunities in the manufacturing, semiconductor, and pharmaceutical industries. 

Total trade in goods and services between the UK and the Philippines reached an upward trend at £3.0 billion in the four quarters to the end of Q2 2025.

According to PEZA, UK companies continue to dominate the ecozone by being the top four largest investors from 1995 to 2024, comprising 6.89%.

As of Oct. 20 2025, total of British Companies reached 75 with a total investments of P45,438.4900 billion.

Nelson noted that, “Manufacturing is an opportunity. Look, the Philippines has a lot of skills and the workforce is clearly there. We need to capitalize upon that. There is also a significant interest in pharmaceuticals, and of course, the UK is the fourth biggest investor in PEZA.”

In a recent briefing, Nelson also recognized the decline of the foreign direct investment inflows at US$320 million in September 2025, reaching a five-year low.

He noted that the flood control scandal and corruption continue to affect investor sentiment and lawmakers and related agencies must quickly act on passing legislation that upholds transparency and accountability, as well as economic reforms to boost growth. 

Nelson identified the need to pass the Cybersecurity Act, Digital Payments Act, and the Blue Economy Act which are identified as priorities of the Legislative-Executive Development Advisory Council under the 20th Congress and are also areas that can further facilitate cooperation with the UK.

The two countries recently established the UK-Philippines Joint Economic and Trade Committee and the Chamber also supports the Philippines’ application to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, to which the UK acceded in 2024. 

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