Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla joined President Ferdinand R. Marcos Jr. and his government’s economic and industry managers in encouraging more investments to the country at the Philippine Business Opportunities Forum in Tokyo on February 10.
The forum—part of the President’s official visit to Japan—drew more than 600 Japanese attendees, comprised of top government officials, business leaders, as well as current and potential investors.
In his keynote message, President Marcos emphasized the “solid economic ties” between the Philippines and Japan, marked by partnerships in areas such as infrastructure development, information and communication technology, space science, and agriculture.
“I would like to thank Japan for being a longstanding economic and strategic partner, and a friend. You have played a major role in the Philippines’ socioeconomic transformation over the past decades,” President Marcos said.
Mr. Yasutoshi Nishimura, Minister of Economy, Trade, and Industry (METI) emphasized that Japan sees “the Philippines as a [trade and investment] hub to connect with other countries” in the region. He cited the young, English-speaking Filipino population as one of the main reasons why around 1,400 Japanese companies have set up operations in the Philippines. The forum should serve as a catalyst for further investment, he added.
According to Philippine Society of Japan President Makoto Katsura, “Japanese companies have a heightened interest in the Philippines for investment and will gain a better understanding of the Filipino business environment from this forum.” Mr. Teruo Asada, Co-Chairman of the Japan-Philippines Economic Cooperation Committee, relayed his organization’s appreciation for the additional incentives that are now available to Japanese investors.
Mr. Nabuhiko Sasaki, Chairman and CEO of the Japan External Trade Organization shared that the forum was their largest event since the COVID-19 pandemic, which underscores “the importance [of the strategic economic partnership] between our two countries.” This type of cooperation “gives hope not only for the Philippines and Japan, but for the whole world”, added Secretary General Kunihiko Hirabayashi of the ASEAN-Japan Centre.
During the panel on the Philippine economic performance and outlook, Governor Medalla said inflation is being addressed through monetary policy [on the demand side] and sustained national government efforts to mitigate the impact of supply-side constraints.
“I am confident that inflation will be addressed because the main sources of inflation are supply problems and the government is already addressing these temporary issues,” said the Governor.
He also highlighted the country’s strong economic fundamentals, relatively large gross international reserves, and a stable banking system that is “well-governed and very adequately capitalized.”
Department of Finance (DOF) Secretary Benjamin E. Diokno underscored the structural reforms designed to increase the country’s competitiveness as well as maximize the potential of its young and English-speaking workforce. “The Philippines is brimming with economic energy ready to be unleashed and shared with the rest of the world,” Secretary Diokno added.
Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual added that the Philippines represents a major opportunity for Japanese investors as the nation looks to ramp up its infrastructure expansion, covering aviation, rail, road, and maritime transport, to drive more inclusive growth.
“We are looking for investments so that we can transform our transportation sector to be at par with global standards,” said Secretary Pascual. Other cabinet secretaries also presented to the Japanese business community investment opportunities in infrastructure, tourism, digital technologies, and renewable energy, among others.
Representing the private sector, Euben Paracuelles, Nomura’s chief economist for Southeast Asia, also labeled the Philippines as one of “Asia’s New Rising Stars,” along with Indonesia and India, citing strong structural reforms and improvements in infrastructure.
Paracuelles included the Philippines as one of the “countries that stand to benefit from this new era of supply-chain diversification. And talking to a lot of embassies, this is one of their main goals, they are looking for countries that are attractive destinations. For us, the Philippines is well-positioned to be that.”
Joining the panel discussions were Budget Secretary Amenah F. Pangandaman, Socioeconomic Planning Secretary Arsenio M. Balisacan, Public Works and Highways Secretary Manuel M. Bonoan, Tourism Secretary Maria Esperanza Christina Garcia Frasco, Transportation Secretary Jamie J. Bautista, and Energy Undersecretary Felix William B. Fuentebella.
Philippine Ambassador to Japan Atty. Mylene Garcia-Albano said: “Japan has been consistently a top investor partner of the Philippines, one of the Philippines’ top export destinations and source of imports, and the Philippines’ biggest source of overseas development assistance.”
The Philippine Business Opportunities Forum was jointly organized by the BSP with the DOF, DTI, Japan-External Trade Organization, Japan-Philippines Economic Cooperation Committee, Embassy of the Republic of the Philippines in Japan, ASEAN-Japan Centre, Philippine Society of Japan, Inc., with support from the Japan’s Ministry of Economy, Trade and Industry, Japan Chamber of Commerce and Industry, Daiwa Securities Group, Inc., Mitsubishi UFJ Financial Group, Inc., Mizuho Financial Group, Inc., Nomura Holdings, Inc., and Sumitomo Mitsui Financial Group, Inc.
The Tokyo forum is part of a series of Philippine Economic Briefings that have, to date, presented investment opportunities to about 1,000 members of the business communities based in Singapore, the United States, Germany, and the United Kingdom.
