PRESIDENT Ferdinand R. Marcos, Jr. on Thursday said he was able to get “billions of pesos worth” of investments from Japanese semiconductor and electronic firms, which are expected to generate over 100,000 jobs.
The exact amount of new investments will be announced on Friday during the signing of intent from the concerned Japanese investors.
Marcos said he is now eyeing to make the country a top manufacturing hub for electronic goods in Asia by securing more such similar investments from Japanese companies.
“We aspire to become a hub of excellence for sectors, where we have a natural comparative advantage. We want the country to attain the status of a regional hub for printers, wiring harnesses and other electronic goods,” Marcos said in a meeting on Thursday with representatives from 11 major Japanese firms that have existing investments in the Philippines.
The country is currently the fourth largest exporter of wiring harness worldwide due to its low- cost production.
Business concerns
The discussions in Tokyo were meant to address the concerns of the said companies and make it more convenient for them to expand their operations.
Among such issues is the long-standing debate on value-added tax (VAT) refund as well as logistic and supply chain requirements.
“I believe that by initiating dialogue and addressing issues in an interactive and proactive manner, we hope to send a message of commitment towards the continued and smooth operations of all Japanese investors in the Philippines,” he added.
He assured investors the government will craft solutions on such concerns, including increasing the pool of skilled Filipino workers for the semiconductor and electronic plants.
“With the automotive industry moving toward electric vehicles and autonomous driving and the printer industry facing challenges related to digitalization and automation, we hope to see you recruit our talented human resources in your R&D (research and development) activities,” Marcos said.
The meeting was attended by top executives of Japan Aviation Electronics Industry, Ltd.; Yazaki Corporation; Yokowo Manufacturing of the Philippines; Sumitomo Electric Industries, Ltd.; Brother Industries, Ltd.; IBIDEN Co., Ltd.; Seiko Epson Corporation; NIDEC-SHIMPO Corporation; and TDK Corporation.
Marcos is currently in Tokyo, Japan for an “official” visit, which will last until Feb. 12, 2023.
US GSP
Meanwhile, Trade and Industry Secretary Alfredo Pascual was also asked to provide updates on the renewal of the United States Generalized System of Preference (US GSP), which expired in December 2020.
“The GSP is important to Japanese companies exporting to the US for duty-free entry of their export products from the Philippines,” DTI said in a statement.
In response, Pascual said that currently, the Philippine government is exerting all efforts to lobby with the US Government for the GSP reauthorization.
A unilateral preferential trade arrangement by the US with 122 beneficiary developing countries and least developed beneficiary countries, the GSP aims to promote economic growth, development, and trade by providing duty-free market access to about 5,000 products in the US.
Speaker optimistic
Speaker Ferdinand Martin Romualdez on Thursday expressed optimism that the working trip of Marcos Jr. to Japan will bring in more investments as the Chief Executive has received investment pledges worth billions of pesos.
Romualdez, in a statement, said the President’s trip is also expected to boost the overall trade and economic relations between the two countries.
“The President is really working hard to promote the Philippines to Japanese investors and businesses. And with the warm reception he is receiving, I am confident that he would achieve more significant gains in the few remaining days of his working visit to Japan,” Romualdez said.
According to Romualdez, in just the second day of President Marcos’ trip to Japan, Marcos received investment pledges worth billions of pesos at Thursday’s round-table meeting with Japan-based semiconductor, electronics, and wiring harness firms.
Romualdez said tourism stakeholders in Japan have shown keen interest in the President’s presentation in a separate meeting to outline the Philippine government’s initiatives meant to encourage more Japanese tourists to visit the Philippines.
At present, Japan ranks sixth among the country’s foreign visitors.
“These are encouraging development that would eventually redound to the benefit of tens of thousands of Filipinos, in terms of new jobs and business opportunities that would further drive our economic growth,” Romualdez said.
Romualdez was among those present in the two meetings, as well as at the dinner Wednesday night hosted for the Philippine delegation by Mitsui & Co. and Metro Pacific Investments Corporation.
He noted that during the dinner, many Japanese businessmen and executives were also inquisitive about business and investment opportunities in the Philippines and its strong economic performance.
President Marcos earlier said the participation of lawmakers in his foreign trips is crucial in his effort to attract more foreign direct investments to the country since they could immediately address concerns prospective investors may have on existing rules as well on pending legislation that may impact the country’s business climate.
Among the pending matters in Congress that may be of interest to Japanese businessmen include the House-approved Maharlika Investment Fund, currently under deliberation in the Senate.
There are also several bills under House consideration, proposing amendments to the 1987 Constitution to remove restrictive economic provisions and open up the country to the entry of foreign direct investments to create more job opportunities and spur economic growth.
President Marcos will have a one-on-one meeting with Japanese Prime Minister Fumio Kishida. They are set to ink key deals in the areas of humanitarian assistance and disaster relief, infrastructure, agriculture, and digital cooperation.
The President will also hold meetings with Japan’s business leaders to promote trade and investment opportunities in the Philippines. (Samuel P. Medenilla, Andrea E. San Juan, Jovee Marie N. dela Cruz)
Image credits: Imperial Household Agency of Japan vi a AP