Some European businesses engaged in the production and supply of construction materials are experiencing slowdown in sales as some of the country’s infrastructure projects are being put on hold following the discovery of multi-billion peso corruption hounding government flood flood control projects.
Florian Gottein, executive director of the European Chamber of Commerce of the Philippines (ECCP), told reporters covering the Arangkada Philippines Investment Forum 2025 at Marriott Grand Ballroom, that some of their members are in the construction industry and producing materials that are being used for infrastructure projects.
“They really are already experiencing it. Their sales are going down when it comes to construction materials,” said Gottein.
Although indirectly affected because these ECCP members are not engaged as government suppliers of construction materials, still they are experiencing the slowdown in sales.
“Because of some of those projects that are being put on hold, they have already experienced a reduction in sales.”
He also noted that the statements made by other countries when it comes to official development assistance (ODA funds showed that some countries would be more careful in deciding on pursuing with ODA financing for the country.
“Definitely it’s not the best picture we’re sending out here in this regard. And there are also discussions among the business community here in the country how far these corruption allegations will actually really go, if it’s only on flood projects or if this is also spilling over to other infrastructure projects as well,” he said.
For now, he said, EU businesses are still in a “wait-and-see” position and monitoring the situation. Just like other foreign business chambers, Gottein said the ECCP believes that the corruption issue is “definitely not conducive for the business environment here.”
But Gottein said that EU businesses trust the government and the responsible government organizations to investigate and immediately act on the findings as well. Related to corruption in government, Gottein said that what really is of more concern to ECCP members is the ease of doing business.
He said many of ECCP members are struggling with the proper enforcement or proper implementation or the lack thereof of the ease of doing business law.
