Swedish Embassy Reopened
In December 2015, the Swedish government announced its decision to open an embassy in the Philippines in 2016 to strengthen trade and investment promotion and policy dialogue. “We see the embassies as a way to create jobs in Sweden. It is important that we improve the opportunities in these markets that are a little further away, that is a little harder to get into. Then the embassies play a huge role”, says Economic Development and Innovation Minister Mikael Damberg.
A notification from the Embassy of Sweden in Bangkok, Thailand on 7 November 2016 says the Swedish Embassy in Manila will be officially inaugurated on 8 November 2016 by the Swedish Minister of Enterprise and Innovation, Mr Mikael Damberg. 1
Eight years after the global financial crisis forced Swedish Embassy to close down in the Philippines, Sweden has reopened it on 8 November in Taguig City presided by the Swedish Minister for Enterprise and Innovation Mikael Damberg and Ambassador-designate Harald Fries.
Minister Damberg was accompanied by 70 business delegates led by the prominent Wallenberg group of companies with top executives from Swedish corporations like SAAB, Scania, Volvo, Ericsson, Swedish Match, SEB, Transcom and IKEA among others.
Damberg said that this would reestablish economic and foreign diplomatic relations with the Philippines. “There is a huge potential for more investments and trade between the Philippines and Sweden,” he noted. The embassy, he said, would bolster Sweden’s presence in the emerging Souteast Asian market.
“Sweden has not been totally away”, Damberg said. Sweden maintained honorary consulates in Manila and Cebu, aside from over 40 Swedish companies established in the country.
Department of Trade and Industry (DTI) Undersecretary for Industry Promotion Group Nora K. Terrado said, “Swedish are known for their quality products and innovative solutions. We look forward in future partnerships with them and heightened trade relations that will generate more jobs for Filipinos.”
According to the DTI, Sweden ranked as the Philippines’ 43rd trading partner (out of 223), 59th export market (out of 211), and 36th import supplier (out of 203) in 2015. Total bilateral trade amounted to US$143.40 million.
Clark Green City
In 16 November 2015, the Bases Conversion and Development Authority (BCDA) signed a Memorandum of Understanding (MOU), effective for three (3) years, with the Swedish government and two private firms for future collaborative opportunities to develop and build the Clark Green City - envisioned to be the country’s first smart, disaster-resilient and green metropolis.2
The Swedish entities are IVL Swedish Environmental Research Institute (IVL), a foundation jointly owned by the Government of Sweden and Swedish industry; ElectriCITY, a non-profit organization composed of major companies operating in Sweden; and Xeric AB (Xeric), a company that specializes in providing business consultancy services for small and medium enterprises.
The MOU was signed by BCDA President Casanova, IVL President and CEO Tord Svedberg, ElectriCITY Chairman Allan Larsson, and Xeric CEO for Southeast Asia Klas Lundgren.
More Investments
Ylva Berg, president and chief executive officer of Business Sweden, said they met with Department of Transportation (DOTr) secretary Arthur Tugade the other day to discuss possible investments in the Philippines.
Berg also said that they discussed plans with Philippine officials for the establishment of a new airport, railways and harbors, as the Duterte administration eyes increased spending for infrastructure and transportation.
“Swedish companies are known to enter long relationships in equal terms. With the high quality and sustainable solutions and products. We think this is a good match,” Berg said.
Elisabeth Somp, head of media relations of Business Sweden, said Sweden is “a very good match to what the Philippine society is looking for right now.” She said the Swedish government has three priorities in mind: infrastructure and transportation; information and computer technology; and defense and security, where they believe they have a comparative advantage.
Fries said, in the area of defense, Sweden can sell security systems and can also offer air and maritime surveillance systems but not firearms to the Philippines.
Damberg mentioned that IKEA will set up shop in Manila, with other Swedish companies possibly investing in the Philippines.
Wallenberg Family
The Wallenberg family (known as The Wallenbergs or simply Wallenbergs) is a prominent Swedish family renowned as bankers, industrialists, politicians, bureaucrats, diplomats.3
The Wallenbergs are extraordinarily powerful. They control a vast business empire made up of large stakes in many of Sweden’s biggest multinationals and worth tens of billions of pounds. Through a network of shareholdings owned by foundations, the family controls or is a major shareholder in scores of companies including Saab, the car manufacturer; Electrolux, the electrical goods maker; Ericsson, the telecoms giant; and AstraZeneca, the Anglo-Swedish drugs giant. By the late 1990s the Wallenbergs’ holding company, Investor AB, was estimated to own roughly 40pc of the Swedish stock market. In short, their influence in Swedish business is unmatched.4 ●