Best prospects for U.S. companies in the Philippines include the information and communications technology (ICT), defense, clean energy, transportation infrastructure, and healthcare sectors. 

The Philippines is estimated to spend approximately $4.4 billion on digital infrastructure over the next six years.  Priority subsectors include cybersecurity, the cloud, and telecommunications. 

The Philippine defense market is largely contingent on the implementation of the Armed Forces of the Philippines’ (AFP) ongoing modernization program, which started in 2012 and will likely continue through 2037.  Opportunities exist for sales in aircraft, ships, unmanned vehicles, intelligence and surveillance systems, communications, personal protective equipment, and satellite and space systems.

Energy security and climate change is a priority of the Philippines as underscored in Philippine President Marcos’ State of the Nation Address.  President Marcos has indicated interest in developing opportunities in civil nuclear energy, offshore wind, and energy storage.

President Marcos Jr. announced that his administration will continue the Build, Build, Build program launched by the Duterte Administration in 2017 to address the country’s infrastructure challenges.  The ‘Build-Better-More’ infrastructure program of the Marcos administration currently has 194 Infrastructure Flagship Projects (IFPs) worth around $147 billion.  These projects cover sectors such as physical and digital connectivity, power and energy, water resources, health, and agriculture.  Japanese-tied aid projects cover a large portion of this initiative, but U.S. firms can work on these projects as a sub-contractor or supplier through the main Japanese contractor.  Opportunities also exist for U.S. firms to compete on government tenders through a Philippine partner.  Furthermore, firms may also elect to participate in public-private partnership (PPP) projects.