Israel seeks stronger ties with Philippine BPO, electronics sector
MANILA, PHILIPPINES — Israel recently expressed a keen interest in expanding its trade relations with the Philippines, particularly in the fields of business process outsourcing (BPO) and electronics.
This interest was highlighted during discussions at the Israel-Philippines Water Technology Innovations Forum, where Israel’s Ambassador to the Philippines, Ilan Fluss, shared insights into the growing economic ties between the two nations.
Fluss noted, “The expectation (is for trade relations) to grow. We have to wait and see… But when you look at the investment from companies creating new business, that is an indicator.”
He remains “very optimistic” about the future of these bilateral relations, especially after two-way trade reached over $500 million in 2022.
However, Tradeline Philippines reported a slight decline in trade to $478.2 million in 2023, marking a 14.9% decrease.
Focus on BPO and electronics
Fluss explained that the Israeli private sector is “very interested in the Philippine market.”
“Companies in the BPO, electronic (electronics manufacturing services) are moving into the Philippines to do their processes here,” he added.
The Philippine BPO sector is known for its robust growth and significant contribution to the country’s economy.
As of 2023, the industry boasted a workforce of 1.7 million and total revenues of $35 billion.
The Information Technology & Business Process Association of the Philippines (IBPAP) also expects the sector’s workforce to expand to 2.5 million by 2028 and achieve $59 billion in revenue.
Bilateral agreements and future prospects
The recently ratified Israel-Philippines Investment Promotion and Protection Agreement (IPPA) is expected to play a crucial role in fostering these ties.
Tomer Heyvi, the head of Israel’s Economic and Trade Mission to the Philippines, emphasized the importance of this agreement, adding, “The IPPA… will also provide an avenue to increase bilateral trade and investment.”
The agreement is poised to open new avenues for investment and collaboration, particularly in sectors where the Philippines has shown significant expertise and growth potential, such as information technology and electronics manufacturing services.
As these developments unfold, the future of Israel-Philippines economic relations looks promising, with substantial benefits anticipated for both nations in the realms of technology, trade, and investment.
