President Arroyo arrived yesterday from her official trip to Japan, which Malacañang described as one of the most successful in all her visits to that country.
In her arrival statement, the President said she reaffirmed to the international community, including investors, the media and Japan’s leader, that the Philippines has never been stronger and more ready to join the ranks of Asia’s tigers.
“Just as we have been successful in the past by luring more Japanese investors, so too are we confident that even more investments and job-creation will follow in the aftermath of this successful trip,” the President said.
“We eagerly engaged with Japanese business leaders to convince them that the Philippines is the best value in Asia today and the best place to invest,” she added.
Mrs. Arroyo said that Japanese Prime Minister Shinzo Abe has also declared his intention to take an even more active role in shaping peace in Mindanao.
“Nothing could be better for the Philippines than more investment and peace and stability coming out of Mindanao,” Arroyo said.
“Our trip to Japan to join other leaders like Prime Minister Abe and Prime Minister Badawi (Malaysia) was another step in our quest to further cement our ties and bring more investments, economic growth and peace and stability to our nation,” the President said.
“In sum, we have sent a clear message to our Japanese friends and hosts that relations between the Philippines and Japan have never been stronger. We made advances on closer economic ties and continued to build on the warm ties that bind our relations with Japan, not just in the Philippines but in the Asean region and the world,” she said.
Press Secretary Ignacio Bunye said Japan is now taking notice that the Philippines is back and open for business.
“On this trip to Japan we met with business and financial leaders from Japan to again tell the Philippine story and encourage them that the Philippine turnaround is here to stay, that our politics have stabilized and that we are the best value in Asia,” Bunye said.
Bunye disclosed that the President’s visit to Japan resulted in the successful negotiation of a new country assistance program for the next five years in three priority development areas, namely: sustained economic growth aimed at the creation of employment opportunities; poverty reduction; and assistance for peace and stability in Mindanao.
Trade Secretary Peter Favila told reporters at the arrival area at the Ninoy Aquino International Airport, that Mrs. Arroyo had several meetings with existing and prospective investors in the Philippines.
Favila said there was keen interest among the Japanese businesses of investing in the country.
“There’s a recognition of the economic reforms that have taken place in the country. They were saying that the Philippines indeed is a lot more competitive than it used to be and of course they acknowledged the political stability that is taking place in the country today considering that we just had the elections,” Favila said.
Favila admitted that the interest shown by the Japanese companies to invest more in the country was not expected as the President’s visit was primarily to address the annual Nikkei Conference.
“It turned out that many of the top Japanese companies made a call on the President if only to inform her of their serious desire to bring in all these investments,” he said.
Japanese financial and donor agencies have extended additional development assistance to the Philippines, including funding for major infrastructure projects, owing to the improving fiscal and economic conditions of the country, the President said.
“Our economy and gains against poverty are proof the plan is working,” she said.
During her stay, Mrs. Arroyo held talks with Prime Minister Abe where they discussed the status of the approval process of the Japan-Philippines Economic Partnership Agreement (JPEPA). She also delivered the keynote address before the 13th Nikkei Conference on the “Future of Asia” and met with investors and Japanese members of parliament.
She also held separate discussions with Japan Bank for International Cooperation (JBIC) Gov. Kyosuke Shinozawa and Japan International Cooperation Agency (JICA) president Dr. Sadako Ogata.
Shinozawa assured her that JBIC would continue to support development projects in priority sectors in the Philippines, Bunye said.
Bunye, who was present during the meeting, said Shinozawa assured Mrs. Arroyo the 27th yen loan package for the Philippines would soon be approved after both sides resolved the issue of value added tax (VAT) refund of Japanese contractors in Philippine projects.
Favila said the 70 percent of the VAT claims have already been settled.
He said the JBIC’s assistance included a loan for the Pinatubo Hazard Mitigation Project and the Agrarian Reform Infrastructure Support System, which have technically been approved.
JBIC also will participate in the government’s power sector development program worth $300 million for the National Power Corp., the Pasig-Marikina River Channel Improvement for flood control ($70 million), and the Agno River Irrigation Project (P4 billion).
Meanwhile, the President appealed anew to senators to ratify the JPEPA after she explained to Japanese officials that the delay in ratification of the treaty by the Philippine Senate is part of the democratic process in the country.
A number of senators have expressed concern that the agreement could make the Philippines a dumping ground of toxic waste from Japan. – With Paolo Romero