Osaka, PEZA sign agreement to encourage investments

MANILA, Philippines - The Osaka Prefectural Government (OPG) of Japan has signed an agreement with the Philippine Economic Zone Authority (PEZA) to make the latter’s economic zones a priority for overseas expansion among Osaka-based small and medium enterprises.

The memorandum of understanding signed on Tuesday will encourage Osaka SMEs to make investments in manufacturing and other authorized business activities in PEZA-administered economic zones. 

“In order to achieve the objective of this MOU, the parties will endeavor to cooperate with each other, together with the Philippine Trade and Investment Center Osaka to conduct investment seminars, company visits, and other activities to promote Osaka SMEs expansion to PEZA-administered economic zones,” the agreement stated.

“OPG shall recommend PEZA-administered economic zones as suitable locations to Osaka SMEs contemplating overseas expansion,” it added.

PEZA, meanwhile, is designated to facilitate application and registration procedures of Osaka SMEs locating in the economic zones as well as provide them with other necessary assistance.

“This memorandum of agreement is just the start. There will be more investment missions coming from Osaka,” PEZA director general Lilia De Lima said.

“They (OPG) will encourage all the small and medium companies to come here. This would be potential suppliers to the companies that are already here. They will also gather their SMEs there and they will invite me there and I’ll make my presentation,” she added.

De Lima said Osaka SMEs that are initially eyeing to locate in PEZA-administered economic zones are mostly car parts and electronics manufacturers.

With the recommendation from the OPG, the level of comfort by Osaka SMEs to do business in PEZA-administered economic zones are seen to be intensified.

The agreement is also expected to lead to the formation of SME parks within PEZA-administered economic zones.