BSP chief woos Japan investors

Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. is wooing Japanese companies to set up shop or expand their presence in the Philippines on the back of the country’s solid macroeconomic fundamentals.

Espenilla, who earned his masters in Policy Science from the Saitama University’s National Graduate Institute for Policy Studies (GRIPS) through a scholarship grant from the Japanese government in 1986, said there are favorable prospects for growth and investments for Japanese investors in the Philippines.

“Japanese investors in the country can look forward to expanded opportunities for growth and investments,” Espenilla said in his speech at the reception hosted by the Philippines Japan Society (PJS) and Philippines Japan Economic Committee (PHILJEC).

He pointed out the Philippines is one of the fastest growing economies in the region with a 6.4 percent gross domestic product (GDP) growth in the first quarter, fueled by the agriculture and exports sectors.

Furthermore, he said the overall confidence index of businesses in the second quarter has improved, reflecting optimism in the economic prospects of the country with foreign direct investment inflows reaching $1.6 billion in the first quarter.

“The Philippines’ macroeconomic fundamentals remain solid and intact. They provide a stable anchor for sustained expansion, amid lingering volatilities and uncertainties coming mainly from the external environment,” Espenilla said.

Espenilla said Sumitomo Mitsui Banking Corp. was the first foreign bank branch to operate in the country after the enactment of Republic Act 10641 in July 2014, paving the way for the full liberalization of foreign bank’s entry in the Philippines.

Espenilla said, Ogaki Kyoritsu Bank Ltd also opened a representative office last May, bringing to five the number of Japanese banks operating in the Philippines.

“The entrance of foreign banks facilitates the flow of investments, promoting trade, supporting business expansion and encouraging technology transfers, leading to job creation and more productive output,” he said.

To date, the BSP has given nine foreign banks the green light to set up shop in the country, paving the way for an enhanced synergy between local and foreign banks to create greater opportunities for service and product innovation in the banking system.

Espenilla said the BSP remains committed to its bilateral arrangements with the Bank of Japan in the interest of strengthening monetary and financial cooperation and integration.

Furthermore, he said both the Philippines and Japan have signed several agreements on the creation of business opportunities through official development assistance and private sector investments to spur infrastructure, promotion of agriculture business, and building capacity for maritime security.

Japan is one of the main trading partners of the Philippines and is the second largest source of imports at 12.4 percent or $3.59 billion of the total imports from January to April.