The Philippine Economic Zone Authority (PEZA) said it generated major foreign direct investment (FDI) leads from at least five Japanese companies conducting due diligence for potential projects in the country.
PEZA director-general Tereso Panga said the agency’s third trade mission to Tokyo spurred a new set of investors engaged in manufacturing and assembly of jet bridge, smart parking structures, submersible pumps for wastewater treatment, digital health back office support, solar energy development and agro-processing and food export cargo.
“This investment mission to Japan for the year was organized by the Science Park of the Philippines Inc. [SPPI], a pioneer and leading ecozone developer in the country through its cutting-edge brand of industrial estates under PEZA such as Light Industry Science Parks I – IV, Hermosa Ecozone Industrial Park and Cebu Light Industrial Park,” he said.
PEZA said it leveraged its private investment promotion partners including Sumitomo Mitsui Banking Corp. (SMBC), Mitsubishi UFJ Financial Group (MUFG), Fair Consulting Group and Tokyo Kiraboshi Financial Group. These partners connected PEZA with their respective clients, including potential investors and existing locators.
SPPI teamed up with the Japan Chamber of Commerce and Industry to bring about more than 100 participants at the Osaka and Tokyo investment seminars.
PEZA and SPPI met with SMBC executives in Tokyo overseeing the Asia-Pacific region. Discussions focused on attracting more Japanese companies to the Philippine ecozones. The collaboration leverages Japan’s position as the Philippines’ second-largest trading partner and third-biggest source of approved investments in 2023.
The recent trilateral agreement among the US, Japan and the Philippines supporting the Luzon Economic Corridor, coupled with the US CHIPS and Science Act, also presented exciting opportunities for Japanese companies semiconductor/electronics manufacturing, agribusiness, clean energy, digitalization and infrastructure development, PEZA said.
The PEZA trade mission was held alongside the Philippine Economic Briefing in Tokyo conducted by economic managers on June 21, 2024.
Meanwhile, the Department of Trade and Industry (DTI) said it secured P7.4 billion in additional investments from two leading Japanese companies.
“During our recent trip to Japan, we met with eight Japanese firms. All of them expressed a strong commitment to expanding their presence in the Philippines,” said Trade Secretary Alfredo Pascual.
Yokohama Rubber Company Ltd. plans to expand its tire manufacturing output by 5 percent, reaching a total production of 3.5 million metric tons (MT) annually. The expansion is supported by a P3.5-billion investment.
Minebea Mitsui, a prominent electronics component manufacturer, also pledged to expand its Cebu semiconductor factory with an investment of up to P3 billion. The expansion may also include an on-site solar farm.
Sojitz Corp. already invested P2.6 billion towards its P3.6-billion commitment. They plan to collaborate with the Yuchengco Group on a sustainable office building project.
Murata Manufacturing Co., Ltd. remains committed to delivering on its P47-billion investment across various sectors. These include a new P4.5-billion manufacturing facility in Batangas focused on multi-layer ceramic capacitors. They also aim to establish a robust supply chain in the Philippines and explore investments in renewable energy solutions.
