By IRMA ISIP and JOCELYN MONTEMAYOR
Nidec Corp. is set to finalize its $500-million expansion in Subic Bay Freeport at the sidelines of President Ferdinand Marcos Jr.’s state visit to Japan, according to Rolen Paulino, chairman of the Subic Bay Metropolitan Authority (SBMA) in a radio interview yesterday.
Marcos, who attended a roundtable with representatives of Japanese companies in semiconductor, electronics and wiring harness industries in Tokyo yesterday, welcomed the billions of pesos worth of pledged investments which are expected to create 10,000 jobs.
The total amount of the investment is expected to be determined by the time the “letters of intent” are signed by the Japanese companies and presented to Marcos on Friday.
It was not clear if the pledges were from the 11 companies, one of which is Nidec, that attended the roundtable. The others are Brother Industries, Ltd., IBIDEN Co., Ltd., Murata Manufacturing Co. Ltd., Seiko Epson Corp., Japan Aviation Electronics Industry, TDK Corp., Sumimoto Wiring Systems Ltd., Yazaki Corp., Yokowo Co. Ltd. and Panasonic Corp.
Trade Secretary Alfredo Pascual said the dialogue with the Japanese companies enabled them to air their concerns and “us to explain what were doing to resolve their concerns.”
Among the issues raised are the value-added tax (VAT) refund issues, logistics, and manpower requirements, among others.
“We have listened to your concerns and your issues, and we intend to respond to these challenges with a whole-of-government approach,” the President said at the roundtable.
In addressing the roundtable meeting, the President also said the Philippines aspires to become “hubs of excellence for sectors where we have a natural comparative advantage.”
“We want the country to attain the status as a regional hub for printers, wiring harnesses, and other electronic goods. We consider your operations significant. You are a prime generator of jobs. You provide support for sectors critical to industrial development and you carry with you the promise to create value through innovation in global manufacturing around the world,” he told the meeting
Before his arrival in Tokyo on Wednesday, Marcos said the Philippines and Japan are finalizing some of the projects that were halted or postponed by pandemic and will explore new ones.
He did not elaborate but said the Philippines and Japan have very well developed interactions with regard to government-to-government or even commercial ventures.
Marcos, in his departure speech on Wednesday, said his visit to Japan seeks to strengthen Manila and Tokyo’s collaboration in a wide range of areas, including agriculture, renewable energy, digital transformation, defense and infrastructure.
According to Paulino, Nidec, an electronics company that makes motherboard for robots, is set to hire another 2,400 employees with the planned expansion.
He did not elaborate but in June 2022, SBMA announced Nidec is eyeing a P4-billion expansion project inside its manufacturing site at the Subic Techno Park to engage into producing a new product called Flexwave, a middle-sized speed reducer for robots.
Nidec manufactures reducer gears for robotic application.
SBMA said during the height of the pandemic, the company retrenched 70 percent or 784 of its workforce due to the adverse effect of the pandemic.
Meanwhile, Japanese shipping companies assured the President they will continue to hire Filipino seafarers to man their vessels.
Junichiro Ikeda, president of the Japanese Shipowners’ Association (JSA) and chairman of the Mitsui OSK Lines, expressed hope there will continue to be a steady supply of professional and well-trained Filipino seafarers to work alongside the Japanese shipping industry.
“We also expect that the quality standard of the Filipino seafarers will continue to improve, as the Philippine government continues to work hard to achieve this,” Ikeda said.
The President recognized and expressed his appreciation for investments being made by Japanese shipowners in maritime training schools located in Canlubang, Laguna and Bataan, recording 1,200 cadets per school per year.
He said the Department of Migrant Workers which has recently created an International Advisory Committee on Global Maritime Affairs, will establish a Japan Desk at the Office of the Secretary to ensure faster communication and coordination between Japanese shipowners and land-based employers with the administration.
