By Chloe Mari A. Hufana, A reporter again Beatriz Marie D. Cruz, Senior Reporter
PHILIPPINE President Ferdinand R. Marcos, Jr. secompleted an investment commitment of approximately R260 billionfrom top Japanese companies during meetings Tokyo, as Manila wants to attract supply chain reloapproxand protect the economy from national politics tension and the growing risks of energy.
“The Philippines is pursuing a clear national direction: to build an economy where infrastructure, industry, finance, people and communication go together as one path to growth,” said Mr. Marcos told executives from Japanese conglomerates and financial institutions on Wednesday.
“And increasingly, we see that trade and tourism will be among the most important engines of that growth,” he added.
Of this amount, $3.4 billion or about P210 billion is expected to support manufacturing, tourism infrastructure, renewable energy and procurement development.
Mr. Marcos on Thursday received another P53.6 billion in potential investments from Japanese companies that plan to expand operations in the country. This investment is expected to generate approximately 10,300 additional direct and indirect jobs for Filipinos.
In a Facebook post, Mr. Marcos said Minebea Mitsumi, Inc. plans to increase its investment in the Philippines, with P25 billion to be allocated for its projects in Cebu, Batangas and Bataan. MinebeaMitsumi is involved in the manufacture of semiconductors, battery protection modules for hyperscale data centers, among others.
The President said he met with the management of Furukawa Electric Co. The project involves the production of advanced heat sink modules and heat control products used around the world electronic applications and digital infrastructure.
Mr. Marcos said Sumitomo Electric Industries, Ltd. pledged a P4.3-billion investment to expand their advanced electronics manufacturing operations in Laguna. This will include the construction of a new facility managed by their Philippine unit First Sumiden Circuits, Inc., the country’s only manufacturer of flexible printed circuits.
“Their new facility will help position the Philippines deeper in the global supply chain for electric vehicles, AI (artificial intelligence)-related electronics, and advanced communications,” he said.
The President also had a meeting with the management of Tsuneishi Group Corp. to discuss the company’s planned expansion of shipyard facilities in Balamban, Cebu, and the continued development of next-generation environmentally sustainable ships.
When the expansion is completed, the Philippines is expected to become the world’s fourth largest shipbuilder, after China, Japan and South Korea. The commitments come as the Marcos administration strives to sustain economic growth despite rising oil prices, supply disruptions and trade uncertainty related in part to the war in the Middle East.
Mr. Marcos used the roundtable meeting to position the Philippines as a long-term investment destination for Japanese companies looking to diversify operations throughout Southeast Asia, especially as companies reevaluate regional supply chains amid global tensions.
The Palace said the investment is expected to create thousands of jobs while supporting technology transfer and industrial expansion.
Mr. Marcos assured his Japanese counterparts of his administration’s initiative to improve institutional stability and long-term investment stability.
“To all our Japanese partners, you know the Philippines not by reports, but by experience,” he said. “You know our workforce: skilled, flexible, and globally competitive… resilient in the face of adversity, eager for opportunity, and deeply connected to global trade and tourism flows.”
Mr. Marcos is in Tokyo for a state visit, the first for a Philippine leader in 11 years. His visit coincided with the 70sth a year of normalization of diplomatic relations between Manila and Tokyo.
Trade Secretary Maria Cristina A. Roque said the Philippines is focusing on investment in high-tech manufacturing and green manufacturing as Japanese companies develop regional production networks.
“Our message is clear: the Philippines is open, fair, and very capable of supporting the rapid expansion and resilience of Japan’s global value chains,” he said in the same statement.
“We strongly position the Philippines as your ASEAN (Association of Southeast Asian Nations) strategic hub for smart manufacturing, green metals, and renewable energy,” he added.
The Secretary for Tourism, Maria Bernardita Angara-Mathay, said the government is looking to attract investors in eco-tourism, hospitality development and air connectivity, sectors that are expected to benefit from renewed tourism demand in the region.
“Tourism is a major engine of infrastructure and trade investment,” he said in the same statement. “Together with our trade initiatives, we are opening up high-value opportunities in tourist facilities, eco-tourism development, and aviation connectivity, ensuring that tourism investment in the Philippines has strong, long-term returns.”
SMART CITIES, FINTECH
Meanwhile, the Philippines and Japannese companies have signed three important agreements that seek to promote the development of smart cities, digital communication, and financial technology (fintech) in the Philippines, Presidential ComThe communications office (PCO) said.
In a statement on Thursday, the PCO said Ayala Corp. (AC), the oldest conglomerate in the Philippines, signed three memorandums of understanding (MoUs) with major Japanese companies during the visit of Mr. Marcos four days in Japan.
The PCO said AC and Ayala led by Globe Telecom, Inc. signed an MoU with Mitsubishi Corp. of Japan and KDDI Corp. to establish “Smart City” programs in Makati City, which can be expanded to other urban areas.
Mitsubishi Corp. is an international corporation operating in all machinery, energy, and automobiles, while KDDI Corp. is a Japanese communications firm ranked among the Fortune Global 500 companies.
According to the PCO, the “Intelligent City” project will use AI, the Internet of Things, urban data integration platforms, and advanced communication solutions to improve transportation, sales and trade services, energy management, and digital city services.
AC and Globe Fintech Innovations, Inc. (Mynt) has entered into a separate MoU with Mitsubishi to develop “Smart Life” digital services. The initiative, which aims to make digital transactions easier for Filipinos, is expected to bring in an estimated P7 billion.
The partnership will include rewards programs, ticketing services, online payment platforms, and digital marketing solutions, PCO said.
AC and Mynt, the parent company of GCash digital wallet, also signed a separate MoU with Mitsubishi and Japanese banking company Mitsubishi UFJ Financial Group (MUFG) to expand GCash services in the Philippines and overseas.
The partnership is expected to help integrate GCash into AC and Mitsubishi’s business ecosystem across retail, real estate, energy, mobility, and digital services, PCO said.
The program will focus on developing better digital payment systems, lending services, investment products, and stronger online security, it added.
AC President and CEO officer Cezar P. Consing said their partnership with Japanese firms is in line with their mission to build inclusive financial systems while helping more Filipinos participate in the digital economy.
“This partnership demonstrates our joint commitment to country-building, innovation, infrastructure, and technology to support the long-term growth of the Philippines,” he said in a separate statement.
Angelito “Lito” M. Villanueva, chairman of the FinTech Alliance PH, said the recent partnership between the Philippines and Japan will help boost economic competition.
“The future of economic competitiveness will belong to countries that can connect finance, infrastructure and technology and the Philippines is now firmly entering that conversation alongside Ja.pan,” he said in a Viber message.
