UK’s BII defies risks, stays all-in on Philippines

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April 21, 2026 | 12:00am

MANILA, Philippines — State-run British International Investment (BII) has signaled continued confidence in the Philippines, even as global oil shocks and rising corruption risks weigh on market sentiment.

The twin headwinds of an energy emergency and a bombshell corruption scandal have heightened market uncertainty in the Philippines, prompting some investors to reassess their positions.

However, BII managing director Rohit Anand said the Philippine energy sector remains one of the most significant investment destinations for the United Kingdom’s development finance institution.

“BII is a counter-cyclical investor. When other capital is not there, that’s when our job really becomes important. Our reaction is not at all to stop investing,” Anand told The STAR.

Given its long-term investment strategy, BII is unlikely to change its strategic direction despite the global oil crisis, but it continues to assess the impact on its investments on a country-by-country basis.

In the case of the Philippines, Anand said that the geopolitical tensions strengthen the case for investing in indigenous energy sources to reduce reliance on imported oil.

“Naturally, we will evaluate the impact on macroeconomics, currency and government finances. But I think if anything, it makes it more obvious that you need renewables for energy security,” he said.

As a net importer of oil, the Philippines quickly feels the impact of supply disruptions in the Middle East, its main source of crude oil.

These supply risks and volatile global energy prices threaten to push up electricity rates in the Philippines, which are already among the highest in Southeast Asia.

“While the climate impact of renewables is very important, I think the energy security impact of renewables is also very important for countries where there isn’t any other homegrown alternative,” Anand said.

Beyond energy security concerns, the Philippines is also grappling with government budget anomalies that have further raised concerns over the local investment climate.

The situation now seems to be getting out of hand, with the country’s two highest-ranking officials both implicated in corruption allegations.

Fugitive former lawmaker Zaldy Co alleged that President Marcos was behind P100 billion worth of insertions in the 2025 national budget, while Vice President Sara Duterte is currently facing impeachment over millions of pesos in confidential funds.

For BII, however, corruption risk is not new, as it is an inherent factor in many of the markets where it invests.

“I think we assume that these risks exist for any investment we are making, which is why the processes exist. I don’t think that this will impact the way we are investing,” Anand said.

Since 2022, BII has allocated up to £500 million in Southeast Asia, with a significant share earmarked for deployment in the Philippines.

Through its partnership with Singapore-based Pentagreen Capital and ib vogt Singapore Pte. Ltd., BII expects the completion of a 99-megawatt-peak solar project in South Cotabato later this year.