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Manila Bulletin devider Business devider Japanese biggest investors in PH ecozones with P727.7 B

Japanese biggest investors in PH ecozones with P727.7 B

Published Oct 15, 2021 02:41 pm

Japanese direct equity investments in the various economic zones in the country have reached P727.7 billion to date, making the number one foreign investor in the Philippines with 27 percent share of total ecozone foreign direct investments (FDIs).

The Philippine Economic Zone Authority (PEZA) cited the data during its latest ECOZONES IN-DEPTH: PEZA Dialogue with the Philippine Ambassador to Japan Jose C. Laurel V.

According to PEZA Deputy Director General Tereso Panga, PEZA has registered 964 locator companies with Japanese equity generating total PEZA FDI inflows of P727.7 billion. These projects provide employment to 351,806 Filipinos.

In terms of its share in the PEZA total ecozone foreign direct investments by country, Japan has always been “ichi-ban”. “Overall, Japan is among the country’s top trading partners and traditionally, it has been the Philippines’ largest foreign investor next to the United States,” said Panga.

In the January-September period alone, Japanese ecozone investments chalked up 70 percent share or P22.2 billion out of total P31.8 billion approved even amid pandemic.

“We remain bullish that the Japanese will continue to be our no. 1 investor in PEZA not only this year but for the many years to come,” said Panga.

PEZA is also confident of brighter prospects for more Japanese FDI flows to the country.

Panga cited four reasons for this optimism. First, he noted of the various economic zone projects with Japanese equity that are still pending Malacanang proclamations by the Office of the President. He also cited ecozone developments with Japanese capital to

FPIP, Lima, LISP, West Cebu, and Yazaki-Torres.

Also, there are continuous expansion of existing Japanese ecozone locators particularly in the product-sectors of EMS and SMS, chemicals (oleo, activated carbon), automotive and automotive parts, computer and optical products, and transport and logistics.

Japanese SMEs are also going global and upscaling of production through JICA's program to connect to the developing countries the Japanese SMEs as an invaluable source of FDI, diversified technologies and expertise.

In addition, the Japanese government's stimulus for Japanese manufacturing companies in China to shift their production in ASEAN has also encouraged Japanese firms to relocate in ASEAN, including the Philippines.

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