MANILA -- Swedish companies are seeking a further relaxation of foreign business ownership rules in the Philippines, according to consulting agency Business Sweden on Thursday.

While several economic liberalization measures have already been passed, allowing full foreign ownership of corporations across all industries could encourage more Swedish firms to set up shop in the country, said Trade Commissioner of Sweden to the Philippines and Business Sweden Country Manager Johan Lennefalk.

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“In general, if you want to have operations, you have IPR (intellectual property rights) and know-how, ensuring that you fully own that and control it is important. At least, that’s what the companies tell us,” said Lennefalk, during the launch of Business Sweden’s 2024 Philippine Market Report in Makati.

Also on their wish list are improvements in the ease of doing business, particularly in terms of securing regulatory permits.

Lennefalk said that the ongoing political drama between Philippine President Ferdinand Marcos Jr. and Vice President Sara Duterte may be seen as a risk factor as well.

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“It depends on the kind of risk appetite you have as a company, so emerging markets are always more of a challenge than mature ones. If you do business investment decisions as a company, you need to be able to think what will happen in a number of years in the future,” he said.

But with risks also come lots of potential, given the Philippines’ positive growth trajectory, young workforce, and skilled service workers, said Lennefalk.

During the release of its 2024 Philippine Market Report on Thursday, Business Sweden highlighted several opportunities in various sectors that Swedish firms can take advantage of while also contributing to the Philippines’ growth.

These range from infrastructure, renewable energy, sustainable mining, healthcare, business process outsourcing, manufacturing, to consumer goods.

Lennefalk said the goal is to also strengthen bilateral trade between the two nations. The Philippines currently represents only 1 percent of Sweden’s exports to Asia.

“Sweden is very dependent on collaboration and trade with the rest of the world. Unfortunately, when you look at Swedish trade, 54 percent of all exports from Sweden are within 1,000 kilometers from Sweden," Lennefalk said.

"You don’t get very far when you travel only 1,000 kilometers. We know that the world is a much bigger place with very interesting markets such as the Philippines,” he noted.

According to Lennefalk, he has personally talked to at least five Swedish companies that have expressed interest in the Philippines.

“(These are) companies that see the Philippines as another regional hub… to supply nearby markets,” he said.

Meanwhile, the Embassy of Sweden in Manila’s Senior Trade Promotion Officer Giselle Yap said Swedish companies that are already in the Philippines are on the road to expansion.

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“Those that are here are expanding their offices, moving to new, bigger offices because they’re employing more people like Nasdaq, AstraZeneca,” said Yap.

To date, there are more than 50 Swedish companies present in the Philippines, some via local distributors.

Among them are BPO firm Transcom, home furnishing retail giant IKEA, car manufacturer Volvo, and drugmaker AstraZeneca.

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