Philippines sees potential for trade growth with Saudi Arabia  

Filipino companies display halal-certified food products at the Malaysia International Halal Showcase in Kuala Lumpur, Malaysia on April 3, 2019. (MIHAS)
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Updated 10 August 2023
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Philippines sees potential for trade growth with Saudi Arabia  

  • With Saudi Arabia, Philippines can boost trade beyond its usual approach, expert says 
  • With 1.7 million Filipinos in the Kingdom, Filipino franchise brands also have growth potential 

 

MANILA: The Philippines is expecting trade with Saudi Arabia to continue rising, an official from the Department of Trade and Industry told Arab News as she highlighted areas for growth, including a mutual recognition agreement for halal certification.  

In 2022, the Philippines recorded a 2.8 percent increase in total trade with Saudi Arabia since 2018. That same year, the Kingdom was ranked as the Philippines’ 16th major trading partner and 37th export market.  

Despite the relatively small number, Filipino officials highlighted many opportunities for trade growth between the two countries, with commodities such as bananas, preserved tuna and data storage units holding the greatest export potential to Saudi Arabia.  

“Rise in trade volume with Saudi Arabia is expected to continue to increase,” Charmaine Mignon S. Yalong, the DTI’s commercial attaché to the Middle East and Africa, told Arab News.  

Data processing machines are among “the best options for the Philippines’ export diversification in Saudi Arabia,” she said, citing the Kingdom’s Vision 2030, which carries a major digital growth component, as the primary drive in demand for such products.  

Saudi-Philippine trade can be further enhanced through other channels, including mutual recognition of each country’s halal certification.  

“Signing a mutual recognition agreement on the accreditation of halal certifying bodies could also increase potential trade and investments between the two countries,” she said.  

“The MRA would aid in developing quality Philippine halal exports through capacity-building and the expertise of the Saudi Food and Drug Authority, as well as streamline the food standards and requirements of both countries.”  

The Philippine Economic Zone Authority launched a promotion campaign for the country’s domestic halal industry earlier this year, as Manila seeks to expand the market presence of its halal-certified food, especially in Gulf countries.  

The Philippines also sees potential for growth for Filipino franchise brands in Saudi Arabia, citing the more than 1.7 million Filipinos who live in the Kingdom, which is also the favorite destination for overseas Filipino workers.  

“Apart from trade, Filipino franchise brands and companies hold potential for growth due to the large Filipino expatriate community in Saudi Arabia,” Yalong said, citing Filipino brands with a presence in Saudi cities, such as fast food joints Jollibee, Chowking and Potato Corner.  

With Saudi Arabia, the Philippines could boost trade beyond its usual partners and exportation of manpower, said John Paolo Rivera, president and chief economist of Oikonomia Advisory and Research in Manila. 

“This diversifies market opportunities to other trading partners, reducing the risks involved in having just a few major trading partners,” Rivera told Arab News.  


Another construction crane collapse in Thailand kills 2 people a day after deadly train derailment

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Another construction crane collapse in Thailand kills 2 people a day after deadly train derailment

  • A construction crane has collapsed onto an elevated road near Bangkok, a day after another construction accident in northeastern Thailand killed 32 people
NAKHON RATCHASIMA, Thailand: A construction crane collapsed onto an elevated road near Bangkok, killing two people on Thursday, a day after another crane fell on a moving passenger train in northeastern Thailand and killed 32 people.
The work on an extension of the Rama 2 Road expressway — a major artery leading from Bangkok — has become notorious for construction accidents, some of them fatal.
The crane collapsed at part of the road project in Samut Sakhon province, trapping two vehicles in the wreckage, according to the government’s Public Relations Department.
Transport Minister Phiphat Ratchakitprakarn said on Thai TV Channel 7 that two people had died. It was unclear if anyone else had been trapped in the wreckage.
There was uncertainty about the number of victims because the site is still considered too dangerous for search teams to enter, said Suchart Tongteng, a rescue worker with the Ruamkatanyu Foundation.
“At this moment, we still can’t say whether another collapse could happen,” he said, citing dangling steel plates. “That’s why there are no rescue personnel inside the scene, only teams conducting on-site safety assessments.”
At the site of Wednesday’s train derailment, the search for survivors ended, Nakhon Ratchasima Gov. Anuphong Suksomnit said. Three passengers listed as missing were presumed to have gotten off the train earlier, but that was still being investigated.
Officials believed 171 people had been aboard the train’s three carriages, which were being removed from the scene Thursday.
The crane that fell, crushing part of the train, was a launching gantry crane, a mobile piece of equipment often used in building elevated roadways.
Police were still collecting evidence and interviewing witnesses and have not pressed charges, provincial Police Chief Narongsak Promta told reporters.
South Korea’s Foreign Ministry reported a South Korean man in his late 30s, was among the dead.
The high-speed rail project where the accident occurred is associated with the plan to connect China with Southeast Asia under Beijing’s Belt and Road Initiative.
In August 2024, a railway tunnel on the planned route, also in Nakhon Ratchasima, collapsed, killing three workers.
Anan Phonimdaeng, acting governor of the State Railway of Thailand, said the project’s contractor is Italian-Thai Development, with a Chinese company responsible for design and construction supervision.
A statement posted on the website of the company, also known as Italthai, expressed condolences to the victims and said the company would pay compensation to the families of the dead and hospitalization expenses for the injured.
Transport Minister Phiphat said Italthai was also the lead contractor on the highway project where Thursday’s accident took place, though several other companies are also involved.
The rail accident had already sparked outrage because Italthai was also the co-lead contractor for the State Audit Building in Bangkok that collapsed during construction last March during a major earthquake centered in Myanmar. The building’s collapse was the worst quake damage in Thailand and about 100 people were killed.
Twenty-three individuals and companies have been indicted, including Italthai’s president and the local director for the company China Railway No. 10, the project’s joint venture partner. The charges in the case include professional negligence and document forgery, and Thailand’s Department of Special Investigation has recommended more indictments.
The involvement of Chinese companies in both projects has also drawn attention, as has Italthai and Chinese companies’ involvement in the construction of several expressway extensions in and around Bangkok where several accidents, some fatal, have occurred.
In Beijing, Chinese Foreign Ministry spokesperson Mao Ning said Wednesday the government was aware of the rail accident and had expressed condolences.