Japan continues to be the top source of investments in the country, indicative of the robust interest of Japanese businesses.
Tereso Panga, officer-in-charge director-general of the Philippine Economic Zone Authority (PEZA) said Japan accounted for 26 percent or P8 billion out of total P31.1 billion approved for January to August 2022.
Panga said he received assurance on the continued interest of Japan in investing in the Philippines in his recent meetings with the top executives of the Japanese Embassy in the Philippines, Japan External Trade Organization (JETRO), Japanese Chamber of Commerce and Industry of the Philippines Inc., Japan International Cooperation Agency (JICA), and Cavite Economic Zone Investors Association.
Citing a JICA report on Japanese manufacturing companies’ investment outlook, Panga said the Philippines ranked no. 7 out of 20 promising countries/regions for overseas business over the medium-term based on the JBIC 2021 survey.
He also cited the Annual JICA Programs report where the Philippines is the biggest recipient country in Southeast Asia for fiscal 2020 of JICA’s grants, technical cooperation, and finance and investment cooperation.
“Japan has been and continues to be the biggest donor of the Philippines. Through JICA, it has done a lot to improve the competitiveness of entrepreneurs and businesses, develop industrial and investment policies and business environment, and raise national incomes to enable the country achieve high quality and sustainable economic growth,” Panga said.
Panga expressed optimism over increased Japanese FDI inflows into the country in view of the new ecozone development projects with Japanese equity such as First Philippine Industrial Park, Lima, West Cebu, Yazaki-Torres, for presidential proclamation,
Panga also cited the continuous expansion of existing Japanese ecozone locators particularly in the product-sectors of EMS and SMS, chemicals (oleo, activated carbon), automotive and automotive parts, computer and optical products, and transport and logistics.
Panga disclosed PEZA will soon register four big ticket projects of Japanese industrial giants into multilayer ceramic capacitor, brushless DC motors, and biomass carbonization. He did not give details.
According to Panga, the Philippines can capture the investments of Japanese small and medium enterprises (SMEs) going global and upscaling of production through JICA’s official development assistance program as well as those Japanese manufacturing companies in China which receive stimulus from the Japanese government to shift their production to Asean.
Panga cited the JBIC 2021 survey which showed Japanese investors chose the Philippines as “base of export to Japan.” In the same survey, the Philippines received the most votes on “good performance of sales in the Asean.
Panga also took note of Japan Credit Rating Agency’s recent A-level credit rating with a stable outlook on the Philippines, citing partly government measures to address the pandemic’s impact on the health system and the economy.
To date, PEZA has registered 903 locator companies with Japanese equity generating a total investments of P735.9 billion and providing employment to 350,486 Filipinos. Irma Isip
