BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
On Nov. 4, 2023, I had the honor of witnessing, along with my colleagues in the Cabinet and from both the Senate and the House of Representatives, the start of a new chapter in our nation’s dynamic and transformative partnership with Japan. For the first time in our 67-year history of formal bilateral relations, Japanese Prime Minister (PM) Fumio Kishida addressed our people in a Special Joint Session held in the august halls of the Philippine Congress.
In his speech, PM Kishida reaffirmed Japan's unwavering dedication to cooperating with its ASEAN neighbors, particularly the Philippines, which has the second-largest population in the ASEAN — with Japan embracing over 300,000 of our kababayans. Japan’s kindness and efforts to maintain the spirit of collaboration throughout the years have always astounded me. In fact, Japan is the Philippines’ largest foreign aid donor as of June 2023, with Official Development Assistance (ODA) amounting to around US$12.92 billion, equivalent to 40.5 percent of our total ODA portfolio. It’s no surprise, then, that the same country is the world’s top donor nation! It has substantially assisted numerous countries, including ours, in infrastructure, healthcare, education, food security, and in capacitating multiple government institutions. In the process, millions of Filipinos throughout the archipelago saw improvements in their quality of life.
Indeed, as President Ferdinand R. Marcos Jr. (PBBM) said during the press conference with Japan’s head of government in Malacañang after their meeting on Nov. 3, PM Kishida’s two-day return and official visit marked another milestone in enhancing the strategic partnership between our countries, “a testament to the strong commitment of both countries to strengthen our bilateral relations further.” It may be recalled that PBBM formally visited Japan this February, and concluded with agreements valued at US$13 billion that would generate thousands of jobs for Filipinos.
For his part, PM Kishida noted that the Philippine-Japan (PH-JPN) relations have reached the “golden age” with strong friendship and cooperation based on trust. It is worth recognizing, however, and I concur with his statement, that the international community is facing threats and global challenges such as climate change and infectious diseases, which require a foundation of human dignity. As he enunciated, “In order for everyone to live with dignity, it is essential to live in a peaceful and stable world.”
Thus, the PM shared Japan’s new plan to realize a ‘free and open Indo-Pacific’ by upholding principles for peace and rules for prosperity, addressing challenges in an Indo-Pacific or in a realistic and practical way, strengthening multi-layered connectivity, and extending efforts for security and safe use of the sea to the air.
I was pleased that the PM set my beloved Mindanao as an example of an area of cooperation, wherein progress and peace in the Indo-Pacific area are correlated with the stability of this region. Hence, Japan has contributed to Mindanao’s economic development and the peace process for the past 20 years. And since 2019, the Japan International Cooperation Agency, in collaboration with the Department of Budget and Management and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), has been implementing major capacity-building activities towards the establishment of a sound Public Financial Management system in the region.
Japanese foreign assistance and strengthened PH-JPN bilateral cooperation
I join PBBM in valuing Japan’s strong support for our nation’s development even as we achieve upper middle-income country status by 2025. Moreover, I deeply appreciate Japan’s continuous assistance to the Philippines’ capacity development efforts and infrastructure development in line with PBBM’s Build Better More program. For Japanese Fiscal Year 2022-2023, Japanese ODA and private-sector investments in the country amounted to JPY600 billion in support of our socio-economic development.
One of the recipients of Japanese assistance is the Department of Transportation, with nine big-ticket projects in the pipeline: two in aviation, two in maritime, and five in railways. The railway projects are being built or delivered backed by JPY1.315 trillion worth of assistance, including the construction of the Philippines’ first subway system or the Metro Manila Subway project. Aside from this, four other railway projects are on track to completion: the LRT Line 1 Cavite Extension, LRT Line 2 East Extension, MRT Line 3 Rehabilitation and Maintenance, and North-South Commuter Rail System.
We are also fortunate to be the first recipient of the cooperation project under Japan's newly established Official Security Assistance. The JPY600 million coastal radar system will improve the Philippine Navy’s maritime domain awareness capability and security. In addition, formal negotiations on a reciprocal access agreement are to commence.
Moreover, I am glad that the Exchange of Notes on the Non-Project Grant Aid for the Acquisition of Construction Equipment for Road Network Improvement/Implementation and Disaster Quick Response Operation in the BARMM has been signed. Worth JPY957 million, the grant will lessen the impact of flooding aggravated by climate change.
Further, with Japan as one of the country’s main tourism source markets, providing nearly a quarter-million arrivals as of Nov. 2, 2023, the Department of Tourism and the Japan’s Ministry of Land, Infrastructure, Transport, and Tourism signed a memorandum of cooperation, marking the two countries’ first stand-alone cooperation agreement. It aims to strengthen and develop tourism ties between the countries by increasing tourist arrivals and encouraging tourists to visit more destinations, thereby fostering healthy industry growth and increasing tourism revenues, investments, and job creation.
Beyond budget, PM Kishida’s return and official visit solidified the transformative and strategic relations between our countries. Thus, the administration of PBBM is resolute in valuing this bilateral relationship. Through a bedrock of people-to-people exchanges, as PBBM said, we will foster connections to further build on trust, mutual respect, and common values across all sectors and various levels, and in a variety of disciplines.
(Amenah F. Pangandaman is the current Secretary of the Department of Budget and Management.)