At least 5 business deals set to be signed in Tokyo

TOKYO — More than five business deals with Japanese firms are expected to be signed on the sidelines of the Association of Southeast Asian Nations (ASEAN)-Japan Commemorative Summit here, the trade department said yesterday.

Trade Secretary Alfredo Pascual, a member of the Philippine delegation to the summit, said the signing of memoranda of understanding (MOU) indicates the seriousness of the business groups in investing in the country.

“More than five definitely,” the trade chief said when asked how many business deals would be inked during President Marcos’ visit here.

“It’s their expression of interest to invest in the Philippines, the expression of Japanese companies. Some are MOUs between Philippine companies and Japanese companies. I don’t want to discuss the details of this. Maybe we’ll talk about it on Monday,” he added.

But at a press briefing last week, Foreign Affairs Assistant Secretary Daniel Espiritu said the new agreements to be signed include those involving the creative and information technology sectors.

Pascual said the government is inviting foreign investors to operate in the Philippines so they could create higher quality and better paying jobs.

“It’s part of the present policy of the administration. We are inviting foreign investors to come (to) the country. Japanese investments are most welcome. They are among the largest investors in the Philippines, among all the nationalities that have operations in the country,” he said.

President Marcos is in Japan to attend the summit. This was his second visit to Tokyo and his 19th overseas trip since becoming president in 2022. 

The Philippines’ total trade with Japan amounted to $23.49 billion last year, 10.9 percent higher than the $21.83 billion in 2021, government data showed.

Japan is also the second largest trading partner of the Philippines in 2022. Priority sectors for investment promotion to Japan include manufacturing, information technology-business process management, electronic design services, public-private partnership projects, agribusiness and aquaculture, according to the Presidential Communications Office.

Japan was the second export destination and third import source of the Philippines in 2022 and its largest source of official development assistance as of June 2023.

Responding to critics of Marcos’ visit here, Pascual said there are investments that materialize even if they are not among the pledges made during the President’s trips.

“While at the end of each trip, we announce certain investment leads, in reality, there are more that are happening outside those in our lists. We run economic briefings and we, in the process, explain what we have to offer in the country, and the attendees are those who are interested to hear, but have not made any expression of interest or commitment to invest,” the trade chief said.

“A number of them, surely, are convinced during the discussion and once they have verified their research, they will come in our list of investment leads... If you notice, the approvals being made by BOI (Board of Investments) and PEZA (Philippine Economic Zone Authority) are not limited to companies or investments that are in the list of the presidential visits,” Pascual pointed out.

He explained that the idea of investment promotion is not just about signing MOUs or receiving letters of intent but “inviting a broader audience” to take a look at the Philippines and decide for themselves how their investments could have a strong potential in the country.   

“There are more and there will be more beyond those that have actually expressed their interest at the time we are in a particular country,” he added. 

For Speaker Martin Romualdez, the President’s trip to Japan is vital to security, peace and progress in the Philippines and in entire ASEAN region.

“President Marcos’ presence at this landmark event is a powerful symbol of the Philippines’ unwavering commitment to strengthening its ties with Japan and further elevating our collective partnership within the ASEAN bloc,” he said in a statement.

He added the summit “presents a unique opportunity to not only celebrate past achievements but also chart a brighter, more prosperous future for our region.”

Romualdez, who is part of the President’s official delegation, said he is hopeful that the Chief Executive would play a key role in advancing crucial discussions on key regional issues, including enhanced Japan-Philippines economic cooperation.

He said that Marcos’ giving priority to infrastructure development, renewable energy and digital transformation aligns perfectly with Japan’s “expertise and strategic investments in the region.”

“Our shared history, cultural ties and common aspirations for a peaceful and prosperous region form a strong foundation for this partnership,” he maintained.

The Speaker added the summit carries “immense potential” to redefine the ASEAN-Japan relationship and usher in a new era of progress and prosperity for all. — Sheila Crisostomo