Finance Secretary Ralph Recto is inviting Japanese investors to participate in the country’s public-private partnership (PPP) program.
The recently-enacted Public-Private Partnership Code establishes a reliable, transparent and competitive framework for PPPs, making it easier for Japanese companies to join the 185 key infrastructure projects under the Build Better More program worth P9.14 trillion.
“We invite you to submit unsolicited proposals for our PPP projects, respond to solicited proposals, or enter into joint venture agreements,” Recto said in a keynote speech at the Philippine Economic Briefing (PEB) in Tokyo on June 21, 2024.
Recto also urged Japanese manufacturing giants to expand their operations in the country, pitching it as Asia’s most strategic hub for cutting-edge production and innovation.
The companies included MinebeaMitsumi Inc., Yokohama Rubber Co., Ltd. and Taiheiyo Cement Corporation.
Recto also showcased other pro-business and economic liberalization policies that the country has in place to foster a welcoming environment for businesses and encourage foreign partnerships.
These include the amendments to the Retail Trade Liberalization Act (RTLA) that lowers the minimum paid-up capital requirement for foreign retail corporations; changes to the Public Service Act (PSA) that allow full foreign ownership of public services, such as telecommunications, airports, and shipping; and amendments to the Foreign Investments Act that promotes foreign direct investments and eases restrictions on professions.
The amendments to the implementing rules and regulations of the Renewable Energy Act of 2008 also granted full foreign ownership of renewable energy projects.
The green lane endorsement expedites, streamlines, and automates government approval and registration processes of priority investments and strategic investments.
The Philippine Domestic Submarine Cable Network (PDSCN) provides inclusive connectivity across the archipelago, positioning the country as an attractive host for technology-centric businesses such as hyper-scale data centers, smart manufacturing, and high-tech agriculture.
The proposed rationalization of the mining fiscal regime unlocks the mining sector’s full potential by enhancing the predictability of the country’s mining policies.
“These reforms are just a fraction of the transformative changes underway in the Philippines to make us stand out as the most hospitable economy for Japanese enterprises,” Recto said.
“We are committed to working non-stop until good becomes better and better becomes the best for business,” he said.
Recto said these reforms, along with the country’s booming economy and the strategic complementarities of Japan and the Philippines, make the latter the most strategic safe haven for Japanese investors.
Japan is the Philippines’ second-biggest trading partner, its largest source of foreign direct investment (FDI), and the top provider of highly concessional official development assistance (ODA). Japan remains the largest investor in the Philippines’ economic zones.
Recto emphasized that the Philippines considers Japan as its best friend in the region due to both nations’ mutual respect and a shared understanding that harmony and security are essential for achieving economic prosperity.