• Philippine infrastructure investment opportunities include transportation, green, and digital projects
• The government has allocated roughly USD26 billion to infrastructure in 2025, more than five percent of the country’s GDP
• Several infrastructure-related sectors in the Philippines are now open to 100 percent foreign ownership

Infrastructure in the Philippines has improved in recent times. Yet, the country still finds itself playing catchup after decades of underinvestment. There is a pressing need for transportation, green, and digital projects across the country. Asian Insiders Philippines Partner Germain Thomas offers insights on how foreign investment fits into the picture.

A significant amount of infrastructure work across the Philippines has been completed over the past few years with several other projects ongoing. Those who have visited the country after years away are often surprised to see the progress now being realised.

Despite this, much more is needed in the country. For the Philippines to reach its full economic potential, transportation, green, and digital infrastructure must be further developed. The government has recognised it needs to build these up and continues to support efforts.

Previous President Rodrigo Duterte launched the Build! Build! Build! programme, an ambitious plan committed to spending a minimum of five percent of the country’s annual GDP on infrastructure. This was a massive shift from the previous decades in which funding was less than half of that on average.

Current President Ferdinand Marcos Jr rolled out his own infrastructure programme, Build Better More, designed to take the situation a step further. The Metro Manila Subway project, the Mega Bridge Program, and New Manila International Airport are among the most recognisable of the 185 planned projects.

Some funding support has come from the Asian Development Bank (ADB) and the Japan International Cooperation Agency as well as through Public-Private Partnerships (PPP). In 2024, the government budget allocated nearly USD26 billion to infrastructure with the figure roughly the same this year.

The country’s economy continues to perform strongly, recording a 5.6 percent increase last year, and most forecasts expect at least six percent growth in 2025. The positive outlook should ensure domestic funding remains in place.

Infrastructure focus areas in the Philippines

There are three main focus areas for infrastructure in the Philippines. Making improvements here is critical for unlocking economic opportunities, reaching climate targets, and meeting other goals.

Transportation – Most Philippine infrastructure projects have focused on improving transportation. President Marcos has noted the need to speed up the movement of people, goods, and services in a country famous for gridlock.

This has seen the launch of many large-scale rail and road projects in addition to a focus on seaports and airports. Transportation will remain a priority for the foreseeable future.

Green – Green infrastructure will be an important consideration moving forward. The Philippines has committed to reducing greenhouse gas emissions by 75 percent by 2030. It is also among the countries most vulnerable to climate change and related disasters. Renewable energy, low-carbon transport, water infrastructure, and waste management are a few of the key areas.

Digital – Much like transportation, a lack of spending on digital infrastructure projects has hindered attempts to develop emerging sectors, such as fintech, e-commerce, and artificial intelligence. Last year saw the government approve the USD288 million Philippine Digital Infrastructure Project. Funded by a loan from the World Bank, this will improve broadband connectivity nationwide and provide remote areas access to high-speed internet. However, the Philippines still lacks the digital capabilities of some ASEAN peers.

Philippine infrastructure investment opportunities

The most significant Philippine infrastructure investment opportunities are those capable of solving the country’s age-old problem: getting people and things to their final destination faster. There is a sense of urgency to make progress as it will improve business efficiency along with tourism, a sector the government is keen to grow moving forward.

Road construction and maintenance, rail-related investments, and airport development remain priorities. This is creating opportunities for overseas firms offering building materials, construction products, electrical and mechanical equipment, connected technologies, and consulting services.

Similarly, firms boasting the capabilities to help the Philippines build up its electric vehicle infrastructure or assist in the development of green public transportation should explore the market. Both are very much in the early stages of development but will grow in the future.

For instance, ADB announced it was funding the purchase of 600 electric buses for the city of Davao. Quezon City government began integrating electric buses into its public transit routes this year.

Seaports are another interesting opportunity because they are needed to complete other goals. First, offshore wind farms in the Philippines need their own seaports to bring the turbines to the site. This will help boost the renewable energy output. Second, 200 farm-to-port seaports are in the planning stages as the government looks at ways for local farmers to export their products in a timely fashion.

Improving water and waste management is vital. According to UN and UNICEF data, more than half of households in the Philippines do not have access to a safely managed water supply. Meanwhile, landfills and waste disposal are a growing concern with reuse, recycling, and resource recovery systems unable to handle the amount of waste created in the country. Foreign investors providing the tools and knowledge to help solve these issues are in demand.

There are also opportunities for overseas businesses with the ability to boost digital infrastructure and support the digital economy. Even as the Philippine Digital Infrastructure Project begins, a significant amount of work must be carried out for the sector to thrive.

It should be noted that opportunities are not limited to large organisations. Subcontracting and subconsulting, in addition to supplying goods, materials, or services, provides mid- or small-sized outfits a chance to enter the market.

Understanding the Philippines

A lot of work has been done to improve the foreign investment climate, which was once highly restrictive. These days, total foreign ownership of airport, seaport, rail and renewable energy projects is permitted. Many other sectors are open as well.

Infrastructure and logistics and environment and climate change projects are considered ‘Preferred Activities’ in the Strategic Investment Priority Plan (SIPP), meaning they are eligible to receive fiscal and non-fiscal incentives. Additionally, the Philippines currently offers incentives for sustainable, eco-friendly businesses as part of the Renewable Energy Law.

Attempts to make entering and operating in the market more transparent and friendly to foreign investors are starting to bear fruit. One notable change was the approval of Executive Order 18 in 2023, also known as the Constituting Green Lanes for Strategic Investment, which has allowed for the streamlining and expediating of market entry and approvals for projects endorsed as strategic investments.

It should be added difficulties remain. Certain parts of the process may be unclear and, overall, some steps take longer here than in other countries. The political situation is something to monitor.  

However, the upside of the Philippines is undeniable, especially as it relates to infrastructure which could supercharge the already robust economic growth being seen. The government is both supporting development and courting investment from overseas.

For foreign firms considering the Philippines, having a partner with local knowledge is a wise decision. At Asian Insiders, we have the ability to not only guide you through the sometimes challenging nature of market entry but also connect you to the right people. That can make a huge difference and place you on the inside track to success.

Want to know more about Philippine infrastructure investment opportunities? Please get in touch with Germain Thomas, Philippines Partner: germain.thomas(at)asianinsiders.com or Jari Hietala, Managing Partner: jari.hietala(at)asianinsiders.com.