Osaka, Japan – “In partnership with the Okayama International Business Association (OIBA), Philippine Economic Zone Authority (PEZA) and the Philippine Trade and Investment Center (PTIC) in Osaka engaged around 30,000 Japanese SMEs to invest in the Philippines that will be vital in boosting the Philippines’ manufacturing supply chain and industrial ecosystem,” stated PEZA OIC Director General Tereso O. Panga following the successful conduct of the investment mission in Osaka and Okayama, Japan last 07-09 December 2022.
PEZA delegation headed by OIC Director General Panga, together with the Philippine Trade and Investment Center (PTIC) in Osaka led by Commercial Counsellor Michael Ignacio, have recently concluded a three-day mission in Osaka & Okayama in hopes to attract more Japanese investors to the Philippines.
With the goal to contribute to achieving the upper middle-income status as the year 2022 comes to an end, PEZA continues its efforts to aggressively engage the Japanese SMEs, attract investments in the country, and promote the Philippines as the smart investment choice for investors worldwide.
[From left to right] PTIC Osaka Commercial Counsellor Michael Ignacio, Showa Spring Co. Ltd. President Masahiro Kitamura, Okayama International Business Association (OIBA) International Business Coordinator Shigeru Ando, OIBA Secretary General Tsushiyo Aihara, PEZA OIC Director General Theo Panga, OIC Deputy Director General Vivian Santos, PTIC Osaka Sr. Trade and Investment Officer Yasuko Kuniyoshi, and Trade and Investment Officer Keigo Teraji
This mission is in preparation also for PBBM's state visit to Japan in February 2023, which will coincide with the celebration of Japan+ASEAN 50th year of partnership. Meanwhile, a group of Okayama business delegation will visit the Philippines by first quarter next year to explore investment opportunities in the ecozones.
OIC Panga noted, “With Japan’s SMEs as the lifeblood of this country’s massive economy, comprising 99.7% of all businesses, we can take advantage of these SMEs by putting up operations in the Philippines, help complete the supply chain, empower our own SMEs, and boost the country’s industrial ecosystem.”
PEZA OIC DG Panga delivering his keynote speech at the Philippine Investment Forum co-organized by PTIC Osaka and the Okayama International Business Association (OIBA) last 08 December 2022
Expansion plans and investments from emerging sectors
Aside from this, PEZA also engaged in several business-to-business and government-to-government meetings during the mission to strengthen its investment promotion initiatives and promote the Philippines as the best choice for investors especially in Southeast Asia.
PEZA and PTIC Osaka met with the Osaka Chamber of Commerce and Industry (OCCI), Osaka Business Development Agency (OBDA), Osaka Prefectural Government (OPG), and the Okayama International Business Association (OIBA) to explore areas for investment promotion collaborations and in strengthening the Philippine-Japan partnership in various areas such as the World Expo 2025 to be held in Kansai, Osaka, Japan.
PEZA and PTIC Osaka meeting with the Osaka Business Development Agency (OBDA) last 07 December 2022
PEZA met with Junca Holdings to discuss their upcoming bio-technology activity to be registered with PEZA. Likewise, partner companies of Junca Holdings such as Synergy and Global Network Japan are also exploring the possibility of putting up a tourism economic zone and an anaerobic / waste-to-energy water treatment plant in the Philippines through PEZA.
Moreover, Shibutani Shoten Corporation, a manufacturer of car seat, arm rest, and headrest covers for big car companies such as Mitsubishi and Mazda, met with PEZA to discuss its plans of putting up a company in the Philippines to support its employment and training program for Filipino workers and expand its brand to the international market.
In terms of expansion, Marukame Trading Co., Ltd. seeks to hire 100 additional employees to their Philippine company, Marukame Fashion Cebu Inc., a 100% export-manufacturer of high-end and global apparel brands located in Mactan Economic Zone.
VALTES Co., Ltd. is also looking at expanding the operations of VALTES Advanced Technology Inc., a PEZA-registered IT company into software design and development, to cater to their plans of employing additional 100 software engineers.
Meanwhile, Nakashima Propeller Co., Ltd., a global industry leader in the manufacture of marine equipment such as sea vessel propellers, rudders, and shafts, is planning to bring in new technology and incorporating innovation to its plants worldwide, particularly in its facility in the Cavite Economic Zone.
PEZA OIC DG Panga providing updates on the cost of doing business in the Philippines and the new tax regime under the CREATE Law during the meeting with Nakashima Propeller Co., Ltd. last 09 December 2022
Moreover, Inabata Philippines Inc., a leading ecozone logistics provider, is looking at expand its warehouse footprint in the next 2 years to cater to its client ecozone locators nationwide.
Showa Spring Co. Ltd., with a PEZA-registered export manufacturing enterprise in Mactan Economic Zone, is also scouting a separate location in the CALABARZON area for the expansion project of its operations in the Philippines.
Positive outlook to increase Japanese investments
With the successful mission, PEZA expects to increase number of Japanese locator companies within its ecozones and create stronger partnerships to promote the Philippines as the smart choice for strategic and big-ticket investments.
“We echo the call of the government and our investors that the Philippines is the smart investment choice in the region. This is the best time to invest in the Philippines,” expressed the PEZA Interim Chief.
To date, there are a total of 891 Japanese enterprises registered in PEZA and located in various PEZA ecozones nationwide. These companies contribute PhP 746.093 Billion of investments from 1995 to November 2022. The Japanese remain the top investors in PEZA comprising 27.52% of its total investments.
For January to November 2022, PEZA has generated a total of PhP 57.048 Billion investments from 181 projects and is expected to bring about 33,308 direct jobs. Investments from Japan accounted for PhP 17.755 Billion or 31.12% percent of the total investments for the period with the top big-ticket projects coming from Shin-etsu Magnetics Philippines Inc., Cebu Mitsumi Inc., TDK Philippines Corporation, Tamiya (Philippines) Inc., and P.IMES Corp. (Philippine International Manufacturing and Engineering Services Corp).
OIC Panga noted that, “PEZA will continue to perform its best and attract the much-needed strategic and big-ticket investments to the country and contribute to PBBM's goal for the country's transition to upper middle-income economy within his term. Let us continue to make it happen in the Philippines!” #