UNITED STATES Ambassador Sung Y. Kim said strong competition between the Philippines and its Southeast Asian neighbors and the country’s security perception were among the many factors why American companies remained “cautious” on bringing new investments or expanding its operations in the country.

“I would like to see more US companies either expand existing operations or bring new investments and I think at the moment we’re not seeing that. I think there’s still some caution, for a variety of reasons,” he said during a media forum at the US Embassy in Manila on Thursday.

Mr. Kim noted that the Philippines’ Southeast Asian neighbors were also competitive and eager as well to attract foreign investments, citing Vietnam as being “accommodating” in its requirements to draw investments.

He also took into consideration the security situation in the country, highlighting the siege last year in Marawi City in Mindanao where government forces clashed with the Islamic State-inspired Maute group.

“I think when something like the Marawi siege happens, corporate headquarters become a bit more cautious about new investments in the Philippines or expanding existing operations,” he said.

Mr. Kim also identified US President Donald J. Trump’s “America First” trade policy of bringing back jobs overseas to the Western country.

Despite these concerns, Mr. Kim said the Philippines was still a “very attractive destination for US investments,” especially with the upgrade of the country’s credit outlook to “positive” by S&P Global Ratings.

“The largest exporter from the Philippines is a US company, Texas Instruments. The largest private employer in the Philippines is a US company, Convergy’s, in the BPO industry. Two of the largest, highest taxpayers in the Philippines are US companies, Philip Morris and Chevron,” he said.

“That gives you an indication of the depth of the economic partnership between two countries. And I remain quite positive about the economic prospects here in the Philippines,” he added.

Mr. Kim said further the overall atmosphere and tone in Philippines-US relations has improved. He also described his meetings with President Rodrigo R. Duterte as “frank, honest, direct but always cordial and professional.”

“(The Philippines and US) work together on so many fronts,… making concrete progress in so many areas…. I think it’s more important to pay more attention to what’s actually happening on the ground with actions and policies and substance rather than occasions of political rhetoric,” said the US diplomat.