PEZA, SMBC, RCBC partner to attract Japanese investments
The Philippine Economic Zone Authority (PEZA) has partnered with Sumitomo Mitsui Banking Corp. (SMBC) and Rizal Commercial Banking Corp. (RCBC) in a bid to attract more investments from Japan.
PEZA signed a memorandum of understanding (MOU) with SMBC and RCBC to make them the agency’s investment promotion partners.
“This MOU is targeted to spur economic development—continuously positioning the country as an attractive investment destination characterized by agility and responsiveness to the needs and demands of our dynamic investors,” PEZA director-general Tereso Panga said.
“The concerted efforts of our esteemed Investment Promotion Partners (IPPs) will actively encourage and increase investments, especially those from Japanese companies,” he added.
Japan remains the country’s number one ecozone investor, with a total of 807 PEZA-registered business enterprises (RBEs).
According to PEZA, this has resulted in P797.84 billion worth of investments, $13.45 billion in exports, and the creation of 336,442 direct jobs as of October 2023.
Panga said the PEZA had approved nine big ticket projects from Japanese investors worth P60.41 billion from July 2022 to December 2023.
“With its acclaimed global presence, the partnership with SMBC could help PEZA tap into [a] broader network of international investors, potentially attracting more foreign direct investments (FDI) and reinvestments into the economic zones. On the other hand, the collaboration with RCBC could streamline processes within the economic zones, making it more efficient and attractive for potential investors,” Panga said.
“Given the financial expertise of SMBC and RCBC, PEZA gains a leverage for the benefit of our locators and stakeholders, especially in starting up their business operations in the Philippines,” he added.
For his part, Yuichi Nishimura, SMBC managing executive officer and co-head of APAC Division, expressed optimism for the growth of the Philippine economy.
“I’m sure that the Philippine economy will continue to grow at an impressive rate, and it will move towards a more resilient and sustainable model of the economy,” Nishimura said.
“Although the world is changing with rising geopolitical risk and uncertainty, I am confident that there is no change to the close relationship between the Philippines and Japan. We remain firmly committed to working hand-in-hand with our Philippine partners, to realize a more prosperous future for both our countries,” he added.
RCBC president and CEO Eugene Acevedo, for his part, said, “Our role as a bridge between the Japanese market and the Philippines is integral to the success of this collaboration. Together with PEZA and SMBC, we are creating an ecosystem that will facilitate seamless connections between Japanese investors and the vibrant opportunities that the Philippines has to offer.”
Panga earlier said they were eyeing to grow investments from Japanese investors to as much as P80 billion this year from P52.2 billion, as PEZA continues to be aggressive in its investment promotion efforts in the East Asian market.
When sought for comment on the recent opinion of the Department of Justice on the work-from-home (WFH) issue, Panga reiterated the agency’s position in favor of allowing hybrid or flexible work arrangements.
“PEZA remains consistent with its position to allow for hybrid or flexible work arrangement in order to retain our valued ecozone locators and ascribe to the President’s call for red carpet treatment for all current and potential investors. This is the right thing to do to keep up with forward thinking economies that have long adopted WFH as the new workplace reality post pandemic,” Panga said.