Manila Bulletin – Sweden eyes more Philippine investments through Luzon Economic Corridor

Sweden is looking to expand its economic cooperation with the Philippines through new investments and financial grants following its formal integration into the partnership for the development of Luzon Economic Corridor (LEC).

“We do see this as a first step and we will, together with our partners and of course the Philippine government, explore more venues for further investments and also further grants,” Anna Ferry, Swedish ambassador to the Philippines, told reporters recently.

Sweden, together with Australia, Denmark, France, Italy, South Korea, and the United Kingdom (UK), was announced earlier this week as among the new members of LEC.

LEC was launched as a trilateral partnership among the Philippines, the United States (US), and Japan in 2024, with the aim of connecting Subic Bay, Clark, Manila, and Batangas to boost economic activity.

Ferry said Sweden’s participation in the development initiative is in line with its commitment to support the Philippines’ priority projects, as it considers the country a strategic partner.

She said joining LEC would ensure that partner countries are able to coordinate their investment efforts to prevent overlap while remaining aligned with the Philippine government’s objectives.

“The LEC provides an excellent platform and a clear vision by the government of the Philippines, and this is a great opportunity for Sweden also to contribute to Philippines development, productivity, and competitiveness,” she said.

At present, Sweden is helping develop the Subic-Clark-Manila-Batangas (SCMB) freight railway, which would serve as the primary logistics backbone of LEC.

Sweden, through its development finance arm Swedfund, is investing ₱74 million to fund a feasibility study (FS) on the railway’s signaling systems and operational models.

While still in its procurement stage, the Department of Transportation (DOTr) expects the study to begin later this year, with its conclusion expected around 2028.

“So we start with this Swedfund project and we are exploring other opportunities where our companies can invest or our development institutions can provide grants and technical expertise,” said Ferry.

The envoy indicated that among these opportunities is a potential partnership related to critical minerals, given that both countries are part of the US-led supply-chain initiative Pax Silica.

“There are no Swedish mines in the Philippines but we have mining in Sweden, and that makes us a relevant partner in the sense that we work on the technologies but also the environmental standards and the social standards to make sure that it’s done in a way that is sustainable,” she said.

In addition, Ferry said economic cooperation would further strengthen under the proposed free trade agreement (FTA) between the Philippines and the European Union (EU), of which Sweden is a member.

Earlier, Massimo Santoro, EU ambassador to the Philippines, expressed optimism that the upcoming round of FTA talks between the two parties would be the final one, with its potential entry into force seen next year.

“We see that as an opportunity to even further improve the trade between our two countries,” said Ferry.