Makati city: Most Swedish firms are planning to increase their investments in the Philippines in the coming 12 months, a new survey released by the Swedish government on Tuesday showed. Results of the Business Climate Survey (BCS), conducted from March to April, revealed that at least 63 percent of Swedish businesses in the Philippines expect their investment levels to increase, while 21 percent see it as remaining unchanged. Only 8 percent plan a decrease in investment for the year, some of which were consumer goods companies affected by the weaker consumer spending trends.
According to Philippines News Agency, the study, which surveyed 38 firms operating in the domestic economy, stated that companies in the professional services sector are among those well-positioned to increase their investments this year, following a 'strong profitability' in 2025. 'Overall, the share of companies planning to increase investments represents an almost 10 percentage point rise compared with the previous year, highlighting a notable strengthening in business confidence,' the BCS read.
Business Sweden associate Sophia Mauleon, who presented the survey results in Makati City, noted that the Philippines ranked top in terms of share of companies planning to increase investments among the 40 surveyed countries, outranking India and Vietnam. Meanwhile, the study indicated that perceptions of the business climate in the country 'remain positive,' amid a shift towards a more neutral stance. Approximately 31 percent of the companies rated the business climate as 'good or very good,' 44 percent considered it 'neutral,' while 25 percent perceived it as 'very poor/poor.'
The positive ratings declined by about 10 percentage points from 41 percent in 2025, a change the study attributed to a 'period of heightened uncertainty at both domestic and global level,' including the current Middle East crisis. 'Together with the investment outlook, the findings suggest that companies remain cautiously optimistic about the country, taking a cautious 'wait-and-see' approach to the situation,' it said. Swedish companies rated work culture in the Philippines positively, citing the Filipinos' "can-do" attitude, high English proficiency, and strong familiarity with Western values and business practices.
The study mentioned that Swedish companies also view as 'key strengths' the availability of professionals and a well-established ecosystem of distributors, suppliers, and service providers in the Philippines. Swedish Ambassador to the Philippines Anna Ferry, meanwhile, expressed that Sweden is eager to explore more opportunities with the Philippines, including through the Luzon Economic Corridor. 'Swedish companies remain firmly committed to the Philippines. They are continuing to invest and working closely with partners, and looking ahead, there are significant opportunities to strengthen our partnership even further,' she said.
Nearly 70 Swedish companies are spread across 11 sectors in the Philippines, including retail, information technology - business process outsourcing (IT-BPO), life science, machinery and technology for industries, mining, energy, and defense and digitalization.
