Japanese investors bullish on PH despite elections
Prefers PH over Indonesia
Despite the national elections next year, Japanese investors will continue to choose the Philippines over competitor Indonesia because it offers a better investment climate.
Nobuo Fujii, executive director and vice president of Japan Chamber of Commerce and Industry, told reporters at the recent meeting of the business groups and APEC National Organizing Committee presided by Trade and Industry Secretary Gregory L. Domingo that the national election next year does not figure in the minds of the Japanese businessmen because that is an entirely “separate political matter.”
“We are confident, Japanese investors will continue to flock into the country,” he said.
According to Fujii, Japanese investors are expanding out of Japan and even those in China are also moving into the ASEAN countries. Among ASEAN counties, the Philippines and Japan are its two favorite investment destinations.
“I cannot say how many more are coming, But Japanese businessmen are always interested in the Philippines because it is a far better situation than Indonesia,” he added.
He cited the Philippine Economic Zone Authority (PEZA) for doing its best to promote the Philippines to Japanese investors, which account for the bulk of projects registered with PEZA.
On their tax refund issue, Fujii said they are still waiting for the government to finally approve payments.
“We are still waiting for some progress,” he said.
Aside from the government’s investment promotion efforts, the private sector is also doing its own contribution.
Integrated Micro-Electronics, Inc. (IMI), the Ayala group’s electronics and semiconductor unit, has invited Japanese companies to make the Philippines their next investment destination.
Speaking at the Philippines-Japan Business Investment Forum, organized by Nikkei Business Publications, IMI president Arthur Tan said “with the second highest economic growth in the region and about a hundred million population, the sentiment for the Philippines has improved.”
Held in Tokyo, the event had more than 250 attendees from Japanese multinationals that are considering expansions or are already expanding their business into Southeast Asian countries.
“One million Filipinos reach working age each year, half of which are college graduates. They speak English and are easily trainable. This tells us something about the quality of Filipino workers,” said Tan.
He told the audience that the Philippines scored the highest in terms of ease of hiring workers, quality of employees, and employee retention on a recent survey conducted by the Japan External Trade Organization (JETRO) of Japanese-affiliated firms in Asia and Oceania.
Tan added that, “having competent and skillful workers who stay long in a company is important if the product you are building requires the highest quality and reliability. The people, with the right mindset, the heart, and the feel for where your product is headed, make the difference.”
He also mentioned that the Filipinos are creative, “with the ability to adapt to different situations, people, and cultures, and build something new.”
“The combination of the Filipinos’ creativity and the Japanese’ discipline and technology makes for a very good base for building quality products,” said Tan.
Nikkei Business Publications is a cross-media company that provides businessmen with high value-added information on management, technology, and life.