• Phl vows better business climate for Japan investors

The Department of Finance (DOF) has vowed to provide a more conducive business and investment climate for prospective Japanese investors.

“We commit to further improve the ease of doing business, respect the sanctity of contracts, and promote a more conducive climate for investments,” Finance Secretary Carlos Dominguez told potential Japanese investors at a briefing in Tokyo.

Dominguez said the country’s accelerated spending which started in the second quarter illustrates the administration’s strong political resolve to embark on an unprecedented investment program anchored on higher public spending on infrastructure and social services.

As the Duterte administration pursues its ambitious program to modernize infrastructure and accelerate inclusive growth, Dominguez said the government is looking forward to higher investment flows from Japanese companies.

“We are impressed with the commitment to excellence that imbues your corporate culture. We hope to benefit from the transfers of technology that invariably tracks investment flows,” he said.

Dominguez said the government is also working with Congress on tax policy and administration reforms to ensure a steady revenue stream that would enable the country to carry out its capital-intensive and high-growth program while maintaining fiscal discipline.

“The fiscal discipline we maintained over the past few years enabled the country to achieve investment grade credit ratings. Those ratings enable us to borrow at significantly lower rates. We intend to continue deserving those credit ratings,” Dominguez said.

Japan Chamber of Commerce and Industry of the Philippines president Hiroshi Shiraishi earlier told Japanese firms with local presence are optimistic on their prospects, most of which are even looking to expand.

Shiraishi said the challenge for the country is on how it can attract new Japanese investments.

He said Japanese investors are seeking for an easier and better environment for business and also want to be assured that the current set of incentives in the country will be continued.

In 2016, Japanese investment in the Philippines surged 52.1 percent to $2.31 billion from $1.52 billion in 2015, data from the Japan External Trade Organization (Jetro) showed.

Preliminary data from Jetro, however, showed Japan’s direct investment into the country plunged 56.6 percent to $561 million in the first five months while Japanese investment in other Southeast Asian countries like Vietnam, Thailand, and Singapore have risen by double digits in the same period.