MANILA, Philippines — Trade and Industry Secretary Alfredo Pascual recently invited Japanese investors and companies to do business in the Philippines, highlighting several government initiatives focused on attracting investments in manufacturing, infrastructure, services, energy and agriculture.
Pascual extended the invitation during the DTI-led Philippine Business Opportunities Forum on Feb.10, as part of President Marcos’ official visit to Japan.
Pascual discussed recent game-changing economic reforms adopted by the country aimed at promoting ease of doing business and providing a favorable business environment where foreign businesses can thrive.
“As we forge commitments in our priority industries, we want to assure foreign investors and businesses that the Philippines will continue to nurture an enabling environment. The Corporate Recovery and Tax Incentives for Enterprises Act offers more attractive and rationalized incentives to foreign investors, including those from Japan. We have also amended our Public Service Act, Foreign Investments Act, and Retail Trade Liberalization Act. The changes ease restrictions on foreign ownership of certain businesses in the country,” Pascual said.
He also said that the Philippines is moving toward robust economic expansion.
“Vital to our government’s efforts is engaging investors from the private sector—like many of you—so we may encourage you to consider and find the Philippines to be a place where your businesses can thrive. For a long time, our economic growth has been consumer-driven. Now, our goal is to achieve an investment-led economy that brings shared prosperity to all Filipinos,” Pascual said.
We seek to harness foreign direct investments as drivers of export growth, sources of vital technology, and critical enablers of the country’s long-term climate action,” he added.
In line with efforts to attract investments, the Trade Secretary highlighted that the country has set out on a path to industrialization, driven by science, technology, and innovation (STI), which enables improved efficiency, new industries, and new goods and services.
“With STI, Philippine industries can become more productive, and can better compete in the market, be it domestic or global. STI enables improved efficiency, new industries, and new goods and services. In turn, these new industries create higher quality, more stable, and better-paying jobs for our people,” Pascual said.
“Globally competitive and innovative industries support our country’s inclusive growth, improve its environmental sustainability, and generate business and livelihood opportunities,” he added.
Pascual also shared that the Philippines aims to penetrate the global electric vehicle (EV) value chain as climate change triggers shifts to renewable sources of energy and the country aims to leverage the opportunities offered by this sector, as it is a rich source of natural resources, one of those are mineral ores that can be used in manufacturing EV batteries.
Moreover, Pascual also highlighted the Philippines’ current efforts to improve digital connectivity and infrastructures in the country that will make business transactions more seamless.
“Integral to catalyzing the growth of investments and businesses, and enhancing ease of doing business, is physical and digital connectivity. In terms of digital infrastructure to promote investments, our government is leading our Digital Cities Program. This aims to set up IT-business process management locators in 31 cities throughout the country by 2025. We are aligning similar efforts towards the digital transformation of government, which should help in robust data systems for programming, efficient service delivery, and more transparency in transactions with the government,” Pascual said.
In a panel discussion during the forum, together with Public Works and Highways Secretary Manuel Bonoan, Tourism Secretary Cristina Frasco and Transportation Secretary Jaime Bautista, Pascual boasted of the Philippines’ strong points and defining features as a country.
“In terms of geographical location, we are looking at the Philippines as a manufacturing hub for the ASEAN region as it is centrally located in the ASEAN. Another important factor is the availability of young, trainable, vibrant workforce, which is a distinct advantage for the Philippines because of our relatively low median age population, as compared to other countries. If you are looking for a potential for growth and are into industries that require manpower resources like BPOs and manufacturing, then the Philippines is the place to go,” he said.
During Marcos’ visit to Japan, a total of 35 letters of intent (LOI) on investments were signed between the Philippines and Japanese government and companies on Friday.
This includes a memorandum of cooperation signed between the DTI and the Japan External Trade Organization (JETRO).
Business agreements signed were Asti Corp.’s wiring harness manufacturing expansion project; Brother Industries Ltd.’s printer manufacturing expansion project; DoubleDragon Corp./IwataChizaki Inc.’s hotel construction project; Itochu Corp.’s expansion of pineapple production volume; Japan Tobacco Inc.’s factory expansion project; Kurabe Industrial Co. Ltd.’s new factory for autoparts; Marubeni Corp.’s energy, transportation, healthcare and afforestation projects; MinebeaMitsumi Inc.’s new factory for OIS (optical image stabilizer) production and solar project; Mitsubishi Corp.’s infrastructure development, construction activities, transportation, commercial and residential real estate development and mass housing projects; and Mitsubishi Motors Corp.’s automobile manufacturing expansion project and commitment renewal to meet production targets.
Also on the list were Nidec Corp.’s (Nidec-Shimpo Corp.) speed reducer gear manufacturing expansion project; Nomura Real Estate Development Co., Ltd./ GT Capital Holdings’ property development project; Renova, Inc. – renewable energy project; Sojitz Corp.’s property development project and telecommunications project; Taiheiyo Cement Philippines Inc.’s kiln renewal, distribution terminal and berth reinforcement project; Tamiya Inc.’s new factory for plastic models and RC cars; TDK Corp.’s new factory for next generation HDD heads and components project; Toyota Motor Corp.’s light commercial vehicle (LCV) manufacturing project and Yamaichi Electronics’ new factory for IC sockets.