Philippines secures $1.24 billion in investment pledges from Japan
MANILA, Philippines – The Philippines secured $1.24 billion worth of investment pledges from Japanese firms that are planning to conduct new projects or expand operations in the country.
In a statement on Monday, March 18, the Department of Trade and Industry (DTI) said these Japanese firms will be investing in various industries, including manufacturing, agriculture, retail, real estate, automotive, and education.
The investments would create 16,000 jobs in the Philippines if they push through.
Trade Secretary Ramon Lopez said this is testament to the foreign firms' "strong confidence in our country's economic stability and business environment under the Duterte administration."
Lopez added that during the DTI's business mission last week, they took the time to explain the incentives system for investors amid the ongoing tax reform.
"The DTI and the BOI (Board of Investments) are actively engaging with our foreign investors, like the Japanese, to assist them in these expansion projects and new business endeavors in the country," he said. (READ: IN CHARTS: Don't credit China for Philippine growth just yet)
Japanese investment in the Philippines has remained strong. Some of the investment pledges of Japanese firms listed by the DTI include the following:
- Mitsubishi Corporation will partner with a Filipino real estate company to provide affordable housing, in a deal worth $76 million.
- Mitsui OSK Lines Ltd and Magsaysay Maritime Corporation's MOL Magsaysay Maritime Academy worth $5.3 million.
- Itochu Corporation's subsidiary Dolefil will invest in a waste-to-energy project valued at $19.2 million. This joint project with Metro Pacific Investments Corporation will use fruit waste to make biogas.
- ISE Foods' $250-million large-scale poultry farm which will employ 1,000 Filipino workers and house 6 million layer chickens.
- Sumitomo Wiring Systems Ltd will also invest $46 million in a manufacturing facility that will produce wire harness systems for auto vehicles and generate 13,000 jobs.
Aside from this, Terumo (Philippines) Corporation president Toshiyuki Akihata also said his firm is planning to develop new products in the country as well as increase its IV catheter production.
Terumo has facilities at the Laguna Technopark, employing almost 3,000 Filipino workers.
Meanwhile, Nomura's real estate arm pledged to develop malls in partnership with another Japanese firm and department store giant Isetan Mitsukoshi.
The company is considering sites in Cebu or Davao for their project which will include 1,400 housing units and 30,000 retail spaces.
Other Japanese firms that expressed interest to invest were electric motors and equipment maker NIDEC Corporation, and home appliance manufacturer Tescom Denki. – Rappler.com