Malaysia and Philippines to Strengthen Digital Economy Partnership

Malaysia and the Philippines continue to enjoy strong and expanding economic relations. Last year, according to the Embassy of Malaysia, total bilateral trade between the two countries reached approximately $8.32 billion, reaffirming the Philippines as one of Malaysia’s important trading partners in ASEAN. Malaysia’s major exports to the Philippines are electrical and electronic products, petroleum and palm-oil and palm-oil based products. The Philippines, in turn, exports to Malaysia semiconductors, electrical and electronic products, as well as agricultural and machinery products. The 2025 bilateral trade figure was about the same level recorded in 2024 at $8.325 billion. Malaysia is the Philippines ninth largest trading partner and its eight largest source of approved foreign investments. Malaysia has been consistent in promoting trade with us, and just this Wednesday, the Embassy of Malaysia hosted an investment briefing for the Malaysia Digital Economy Corp. (MDEC) in conjunction with DEX Connex 2026, bringing together senior representatives from the Bases Conversion and Development Authority (BCDA), Malaysian technology companies, government agencies and industry stakeholders to explore strategic investment opportunities within the Philippines’ rapidly growing digital economy. The program highlighted the investment potential of the Luzon Economic Corridor and BCDA’s flagship economic zones, particularly Clark and New Clark City, while showcasing opportunities for Malaysian technology companies to establish a long-term presence in the Philippines through innovation, digital transformation and strategic partnerships. The event featured presentations by BCDA and BDB Law on the Philippine investment landscape, available fiscal incentives and business establishment opportunities, followed by a networking session and a Memorandum of Understanding signing ceremony between Safe Truck and IoT Philippines. The event was graced by Dato’ Abdul Malik Melvin Castelino Anthony, ambassador of Malaysia, and Attorney Gisela Kalalo, executive vice president of BCDA, underscoring the shared commitment of both countries to deepen cooperation in digital innovation and investment. In her remarks, Attorney Kalalo welcomed the Malaysian delegation and reaffirmed BCDA’s commitment to fostering partnerships with innovative Malaysian companies seeking to establish a presence in the Philippines. Ambassador Abdul Malik, in response, emphasized that the digital economy has become one of the defining pillars of ASEAN’s future growth and competitiveness which offers unprecedented opportunities for Malaysia and the Philippines to strengthen collaboration in emerging technologies, innovation and digital investment. According to the Malaysian envoy, “Malaysia does not view the Philippines simply as another export market. We see the Philippines as a strategic partner in building ASEAN’s digital future. By combining Malaysia’s technological capabilities with the Philippines’ dynamic market, highly skilled workforce and ambitious digital transformation agenda, we can create partnerships that generate lasting economic value, strengthen regional competitiveness and contribute toward a more resilient and digitally connected ASEAN.” He noted that the Philippines has emerged as one of Southeast Asia’s most promising digital economies, driven by a young and digitally connected population, a globally competitive English-speaking workforce and strong government support for digitalization. He also highlighted that initiatives such as the LEC represent a new generation of economic development that integrates world-class logistics, smart infrastructure, innovation districts and digital connectivity, creating attractive platforms for technology-driven investments. The Malaysian delegation, spearheaded by MDEC, included representatives from leading Malaysian technology companies IDmeta Sdn. Bhd., WAHDAH Technologies Sdn. Bhd., Snappymob Sdn. Bhd., Theta Service Partner Sdn. Bhd., Eco Community Sdn. Bhd. and Safe Truck. The companies represent a diverse range of expertise, including digital identity, software engineering, cybersecurity, enterprise digitalization, smart mobility, sustainability technologies and digital platforms, reflecting Malaysia’s growing capabilities as one of ASEAN’s leading digital economies. Malaysia remains committed to supporting the internationalization of Malaysian companies and strengthening economic diplomacy with the Philippines. Through close collaboration with MDEC, Malaysia External Trade Development Corp. and Philippine partners, Malaysia continues to facilitate business engagements that lead to deeper bilateral economic ties, increased digital investment and enhanced cooperation in emerging technology sectors. The investment briefing is part of Malaysia’s continuing effort to strengthen Malaysia–Philippines economic relations and reinforces both countries’ shared aspiration to build a more innovative, digitally connected and resilient ASEAN. By fostering closer collaboration between governments, industry and technology innovators, the initiative is expected to create new opportunities for investment, knowledge exchange and sustainable economic growth in both countries. Last year, the Philippines and Malaysia signed an MOU between the Philippine Guarantee Corp. (PHILGUARANTEE) and the Malaysia Chamber of Commerce and Industries that laid the groundwork for more small and medium Malaysian businesses to do business in the Philippines in the export sector, housing and real estate, infrastructure and even in the financial and renewable energy sectors. By tapping PHILGUARANTEE, a government-owned corporation under the Department of Finance that extends credit guarantees to businesses, Malaysian companies were allowed to access local financing and reduce their investment risks. Filipino companies that do business in Malaysia can tap the Credit Guarantee Corp. Malaysia Berhad. Among the Malaysian companies that have invested and already do business in the Philippines are Malaysia’s biggest conglomerate, Berjaya Corp. BHD and Malaysian banks Maybank and CIMB. Berjaya has been in the Philippines for more than 20 years with a total investment of more than P10 billion. It has investments in hotels, sanitary landfill and in the lottery business — specifically supplying the technology for lottery operations. The Berjaya Group, through its hotel chain Berjaya Hotels and Resorts, owns and operates the Berjaya Makati Hotel along Makati Avenue. It also invested more than P1 billion in the Floridablanca Enviro Corp. sanitary landfill in Pampanga, and had indicated that it would invest in putting up sanitary landfills. Berjaya also has an investment in Pinoy Lotto Technology Corp. which provides technical support to the Philippine Charity Sweepstakes Corp. or PCSO’s lotto operations.