Bridging Businesses Beyond Borders

In 2023, Hong Kong emerged as the Philippines' sixth largest trading partner, with the total merchandise trade between the two regions reaching approximately USD10.85 billion. This is primarily because of stronger trade relationships fostered by a Filipino foreign trade service officer stationed in the territory.

But beyond the obvious, what exactly does a foreign trade service officer do daily? Much of Commercial Vice Consul Attorney Roberto B. Mabalot Jr.'s work at the Department of Trade and Industry’s (DTI) Philippine Trade and Investment Center in Hong Kong (PTIC-HK) involves bridging businesses beyond borders. Despite being based in Hong Kong, his efforts are dedicated to serving Filipinos and Philippine businesses. “We’re the representative office of the Department of Trade and Industry. Our mandate is to assist foreign investors who would like to invest in the Philippines. In my given jurisdiction are Hong Kong and Macau, but the PTIC also has offices in Mainland China and globally. My team handles foreign investors as they figure out if they want to expand their businesses in the Philippines,” Mabalot explains.

In addition to engaging with foreign investors, Mabalot plays a crucial role in helping Philippine exporters expand their reach beyond domestic markets. A significant aspect of his work involves rigorously assessing the legitimacy and credibility of client companies. “On any given day, you’d expect me to be in the office at 9:00 am, then we’d be having either one or two meetings in the morning and another set in the afternoon. As much as possible, I try to physically meet with possible investors to verify the validity or the veracity of their companies,” he notes.

When PTIC reopened its regional office in Hong Kong at the onset of the COVID-19 pandemic, numerous foreign businesses were eager to explore opportunities in the Philippines, attracted by potential incentives. Despite the global challenges brought by the pandemic, Mabalot was undeterred and immediately set to work, facilitating these burgeoning business interests. “The pandemic brought out easier and more efficient communication with foreign investors and Filipino suppliers. We could easily set up online meetings with both the Hong Kong office and the home office in the Philippines. I’d have meetings on a national level or with our possible partners," he reveals. Mabalot describes his day as a vice consul and commercial attaché as busy. “In any given jurisdiction, I do the finance, the administrative work, the marketing, basically everything expected of an office. That’s what we do,” he says.

Because the PTIC-HK team juggles numerous tasks daily, Mabalot notes the high expectations among team members. "We're all expected to be multi-talented," he explains. "In essence, we must be capable of addressing various facets required of an office."

I ENTERED THE FOREIGN TRADE SERVICE BECAUSE THEN, I CAN HELP FILIPINOS ON A MACRO LEVEL. I THINK ANY TIME IS THE BEST TIME TO HELP, IN OUR OWN SMALL WAYS, THE PHILIPPINE GOVERNMENT IN MAKING THE LIVES OF FILIPINO CITIZENS BETTER.

DEGREES UP HIS SLEEVES

Before being stationed in Hong Kong, Mabalot built a robust legal career in the Philippines. He graduated from Saint Louis University with a Bachelor of Science in Psychology in 2006 and a Bachelor of Laws in 2011. Following two years of invaluable experience working in the law office started by his father, he started his own law firm, The Law Firm of Domogan, Chan, and Mabalot. Mabalot’s pursuit of knowledge didn’t stop there, however. After earning a Master of Laws from San Beda College, he also obtained a Graduate Diploma in English and Hong Kong Law from the Manchester Metropolitan University which was offered in collaboration with Hong Kong University School of Professional and Continuing Education in 2022. His distinguished background highlights his deep expertise in law. Many clients have viewed his legal acumen as a significant asset in navigating potential investment ventures in the Philippines and beyond. “Now, as both a lawyer and foreign trade service officer, I provide investors with a greater sense of security when discussing the legalities of doing business in the Philippines. I advise them on how to optimize their operations in the country, especially within a framework as unique as Philippine law,” Mabalot says.

TURNING LOSS INTO A LASTING LEGACY

The true inspiration behind Mabalot’s pursuit of foreign trade service stems from the tragic loss of his sister, who passed away when he was 20 years old. She was in the final year of the INTARMED (Integrated Liberal Arts and Medicine) program at the University of the Philippines Manila before her untimely passing. Mabalot deeply regrets that she didn’t get to complete her medical studies, knowing she could have positively impacted many lives. He sees his career in law and foreign trade service as a continuation of her legacy, ensuring her memory lives on through every successful deal he facilitates. “I’ve always been so sure that had she been able to finish her medical studies, she would have been able to help a lot of people. So, I feel like there is a certain part of her that I want to continue, which I think I’m able to do by doing this type of job. [At the very least] I get to help people, although doing so as a foreign trade service officer is different from being a doctor,” he laments. Serving as a foreign trade service officer provides Mabalot with a profound sense of purpose, driving him to assist and uplift others. As a practicing lawyer in the Philippines, he has already made a significant impact, aiding countless individuals in various legal proceedings. However, his role at PTICHK has amplified his commitment to improving the lives of Filipino citizens. ”I have been so blessed. After passing the bar examinations and starting my own law firm with some of my partners, I was already able to help a lot of people. This makes me see my purpose in life, but there came a point in my life where I wanted to help more individuals,” Mabalot stresses. “I entered the foreign trade service because then, I can help Filipinos on a macro level. I think any time is the best time to help, in our own small ways, the Philippine government in making the lives of Filipino citizens better.”

LAUNCHING FILIPINO BUSINESSES ABROAD

In his role as commercial attaché, Mabalot serves as the vital link between foreign importers and buyers, facilitating the exchange of goods and services. A significant aspect of his work involves marketing Filipino brands to potential foreign investors and buyers who may be unfamiliar with the capabilities of these local companies. A noteworthy example of this effort was showcased during the Hong Kong International Wine & Spirits Fair held at the Hong Kong Convention and Exhibition Centre in Wan Chai last November 2023. During the fair, the DTI through PTIC-HK and the Philippine Consulate General in Hong Kong, showcased Filipino beverages to the global market, hoping to create business opportunities and partnerships. Five notable local beer, wine, and snack brands were chosen to represent the Philippines: Liwayway Holdings Company Limited, San Miguel Brewery, Philippine Craft Distillers Inc., Sagada Cellar Door, and Engkanto Brewery. The event drew over 7,000 attendees from 49 countries, marking a significant turnout. Mabalot deemed it a resounding.

The delegates from Hong Kong were particularly impressed with the Philippine booth, paying attention to the local brands’ unique craft-making and packaging. Mabalot noted that attendees were surprised to know that San Miguel, which has been supplying beer products to Hong Kong for many years, was in fact, a Filipino brand.

”For the longest time, they assumed San Miguel was a Hong Kong brand. When I explained that it’s Filipino, it was an eye-opener for them,” he reveals.

A few standout moments included presentations by Engkanto Brewery and Philippine Craft Distillers Inc. Engkanto Brewery showcased their craft beers, notably the Engkanto Ube Beer, celebrated for its distinctive fusion of ube, a yam variety endemic to the Philippines, with malt and hops. The packaging, which features eye-catching visuals, was also well-received.

Philippine Craft Distillers Inc. introduced its LAKAN Heritage Liquors line, highlighting lambanog (distilled palm liquor) as its flagship product. Attendees lauded LAKAN for its exceptional transformation of distilled 100 percent pure coconut nectar into premium liquor, which is a process that makes the product unlike anything these foreigners have tried before.

“Lambanog is not rum, not whiskey, not anything else. It’s very distinct, original, and unique to the Philippines. It intrigues them and makes them wonder why they haven’t heard of this product before,” Mabalot adds.

Mabalot observed that elucidating the unique Filipino products and processes proved enlightening for foreign importers and buyers, paving the way for these local brands to access international markets.

EXTENDING A HELPING HAND

When it comes to bringing foreign investments to the Philippines, the PTIC-HK facilitates and liaises between the Hong Kong-based or foreign companies and Philippine companies or government agencies or instrumentalities. A few ways they do this are by connecting these regional offices to local government units or investment promotion agencies in the Philippines, as well as assisting them in expediting company registrations with the Securities and Exchange Commission.

A notable example is Alibaba Cloud, the artificial intelligence and cloud computing arm of Chinese technology giant Alibaba Group. In June 2023, Alibaba Cloud announced a USD1 billion investment to support one million digital talents, developers, and technology startups across the Asia-Pacific region. As part of this initiative, plans for a data center in the Philippines are well underway, aiming to bolster the nation's digital infrastructure and innovation landscape. Since entering the Philippine market in 2019, Alibaba Cloud has maintained a strong presence, with PTICHK consistently liaising with the company’s office in the Philippines to provide support and assistance as needed.

Another company Mabalot assists is HGC Global Communications Limited (HGC), a Hong Kong-based telecom and broadband service provider. For decades, HGC has been leasing its optical fibers to Philippine telecommunications companies, playing a crucial role in enhancing the country's connectivity infrastructure. PTIC-HK assists the company in issues that they encounter while expanding their business in Metro Manila.

When asked about the challenges PTIC-HK faces in attracting foreign investments to the Philippines, Mabalot highlighted a significant issue: many foreign and local investors are unaware of the agency's existence and the valuable support it offers. Raising awareness about PTIC-HK's services remains a key priority. “Many people are unfamiliar with the role and services of PTICs located around the world. It's unfortunate when businesses venture abroad without seeking our assistance, missing out on valuable resources such as firsthand information about legal processes, connections with key individuals in the PTIC's jurisdiction, and access to the right networks and markets. On the other hand, numerous foreign companies could have expedited expansion in the Philippines by consulting with us. I believe it's crucial to engage with these foreign businesses and help them optimize their operations in the Philippines,” he says.

Another challenge is limited manpower. Mabalot acknowledges that, despite the PTIC-HK team’s efficiency in managing their workload, their size pales in comparison to the foreign trade service arms of neighboring Southeast Asian countries like Malaysia and Thailand. Increasing manpower would enable PTIC-HK to handle inquiries more swiftly, engage potential investors more proactively, and broaden the dissemination of information about their support services, ultimately enhancing their capacity to serve the business community. “I’m blessed to have one staff member. Although other offices have more, we’ve achieved a lot despite our constraints. A key solution to our challenges is better information dissemination—not just to citizens, but also to public officials—about our mandate and the support we can provide,” he says.

ADVOCATING FOR INCLUSION

The DTI has made remarkable strides since the reopening of its Hong Kong office in 2020. Against the backdrop of the conclusion of Hong Kong’s Belt and Road Summit in September 2023, Mabalot underscores the burgeoning business prospects awaiting Chinese investors in the Philippines. He emphasizes that concerted government backing,

including both fiscal and nonfiscal incentives, will not only streamline business operations but also catalyze reforms aimed at fostering a more businessfriendly environment for foreign investments to flourish.

In addition to the successful participation in the summit, Mabalot spoke about DTI’s plans to establish a Joint Economic Committee (JEC) with Hong Kong. The Philippines has had JECs with other nations such as France and Germany, and the vice consul claims that creating one with Hong Kong would further strengthen trade relations with the special administrative region. “The Joint Economic Committee with Hong Kong will encompass several facets of business, allowing for the exchange of best practices. Engaging in such an agreement with Hong Kong will prioritize bilateral trade over multilateral arrangements. We [DTI] have already expressed commitment and interest in making this agreement a reality,” he says. There has also been a concerted effort to advocate for Hong Kong’s inclusion in the Regional Comprehensive Economic Partnership (RCEP), a landmark free trade agreement that was formally launched in 2012. RCEP encompasses 10 ASEAN member states along with China, South Korea, Japan, Australia, and New Zealand. The agreement aims to reduce tariffs and red tape, establish unified rules of origin, and enhance the facilitation of international supply chains, among other benefits. Hong Kong is not yet a member of the RCEP, but its accession would pave the way for fruitful trade negotiations and significantly streamline the process of conducting business, particularly in areas such as intellectual property (IP).

BEING INVOLVED WITH THE FILIPINO COMMUNITY

As a Filipino stationed abroad, it’s not hard to imagine a Filipino meeting with his kababayans (compatriots) to get a sense of home away from home. "When I arrived in Hong Kong, Filipino products were not being sold in the big supermarkets in Hong Kong, but supermarkets like Wellcome and Market Place tried selling Filipino products sometime in October 2023. Sadly, from 13 Market Place and 50 Wellcome locations, the Filipino products can only be found in a handful today. On the part of Filipinos in Hong Kong, we reminded them to patronize the Filipino products and share to their foreign bosses and foreign friends the Filipino products since these supermarkets are still businesses, and they would only sell Filipino products if there is actual demand coming from the Hong Kong market." The PTIC-HK is also championing projects to showcase Filipino creatives to foreign investors. Notably, in the recently concluded 2024 International Culture, Tourism, and Intangible Cultural Heritage Exhibition, creatives from the Cordillera Administrative Region were showcased, exhibiting Filipinomade artworks, weaving, and fashion accessories. "As much as possible, we [PTIC-HK] would like the Hong Kong market to know that Filipinos have a lot more to offer. On the other hand, we want to empower overseas Filipino workers, or overseas Filipino investors [as we'd like to call them], to become business owners." Last year, the Intellectual Property Office of the Philippines and the Intellectual Property Department of Hong Kong signed an agreement to foster cooperation in IP creation, awareness, security, trading, and utilization. This partnership aims to enhance the trademark protection of Filipino goods and services, while also facilitating the exchange of best practices and innovations between Hong Kong and the Philippines. For a foreign trade service officer like Mabalot, the substantial presence of Filipino businesses in Hong Kong represents a unified effort to elevate more Filipino enterprises— and potentially Filipino creatives—onto the international limelight.

MOVING FORWARD AND BEYOND

Mabalot observes that Hong Kong consistently ranks among the top ten trading partners of the Philippines. While the top trade relations are with mainland China, the United States, and Japan, exports to Hong Kong have steadily remained within the top ten. “You will be quite surprised that a lot of our exports from the Philippines to Hong Kong include chips, storage, and electronics. We at PTIC-HK, however, want to push for more agricultural products and Filipino professionals, specifically our engineers and information technology technicians, to reach Hong Kong and the Greater Bay Area which comprises Hong Kong, Macau, and Guangdong Province,” he reveals. Mabalot also stresses again the importance of information dissemination to achieve resilient trade relations. He shares the many avenues that Filipinos, including himself, can capitalize on in order for foreigners to learn more about the Philippines and what it can offer. ”Based on my experience here in Hong Kong and Macau, a lot of people really don’t know much about the Philippines, considering the flight is only an hour and 45 minutes long,” he says. A few ideas he shared were video commercials about Filipino products with Cantonese and English translations, using social media platforms and tapping influencers in Hong Kong to use Filipino products in their content. Mabalot shares that they will do as much as they can to spread awareness about the Philippines, even with the constraints they deal with. “We have to at least start somewhere. I’m hopeful that in the next 10 or 15 years, foreigners will know more about Filipinos, our talents, and our potential. Even a five percent to ten percent change in their familiarity with the Philippines will be more than enough,” he shares.

A HEART TO SERVE

With a distinguished legal career, a decorated background, and significant contributions to Philippine trade and investment relations, Mabalot 's expertise positions him as a potential candidate for higher office. However, when queried about any intentions to enter politics and governance, he politely indicates that such aspirations are not currently on his radar. ”My desire is to help Filipinos and Filipino businesses. I always thought that after becoming a lawyer, I would remain a lawyer until retirement, but that wasn’t the case. With my work as a foreign trade service officer, I get to help a lot of people without involving politics.” ”We are appointed by the President, even as we go higher in rank, we have a career position so we have security of tenure. I think that’s one good thing about what we do [as foreign trade service officers], because there’s consistency,” he says. At the end of the day, Mabalot earnestly wants to serve and extend help in his practice in any way he can. For what the future brings, he leaves it up to faith and trust in God. ”I’m still very Catholic. It 's a very Filipino thing, but I believe that God will always guide me to the right path,” he ends.