The Philippines and Japan are expected to sign more than five business agreements during President Ferdinand Marcos Jr.’s visit here, Trade Secretary Alfred Pascual said on Saturday.
Speaking to Filipino journalists here, Pascual said these deals would be on top of the investment pledges from the previous trip of the President to Japan.
“It’s an expression of interest to invest in the Philippines, expressions of Japanese companies to invest in the Philippines. Some are [MoUs or memorandum of understandings] between Philippine company and Japanese company,” Pascual said during a media interview.
The Trade chief said the signing only showed Japan’s confidence in the business industry in the Philippines and a “serious intent and serious plans to proceed with the investment.”
“It’s support of the present policy of the administration in the sense that we are inviting foreign investors to come into the country, and these Japanese investments are most welcome. And they’re among the largest investors in the Philippines already among all the nationalities that have operations in the country,” he added.
Pascual, however, did not disclose the sectors covered by the deals so as not to preempt the signing scheduled on Monday but said that some would be MoUs between Japanese and Philippine business companies.
“Through these motions of signing letters of intent and MoUs, that means that there is a serious intent and serious plan to proceed with the investment,” he added.
The trade agreements come as Marcos announced on Friday that he was considering a review of the economic provisions under the 1987 Constitution aimed at luring more investors into the country.
In a media interview, Marcos said the existing economic provisions were hindering potential investors from proceeding with their operations in the country.
“We’re just beginning to study because we keep talking about economic provisions that are getting in the way with some of the potential investors that we are trying to bring to the Philippines,” he said.
“What we are looking at here is the opportunity cost of those who would like to invest here, but somehow the laws that derived from the Constitution when it comes to the economic provisions do not allow them to or make it non-viable for them,” he said.
The President stressed that the study was not really about constitutional reform but about what “we need to change” to attract potential investors.
“My primary interest is to try and make our country an investment-friendly place,” the President said.
Asked if the President would pitch for the possible amendment to the 1987 Constitution’s “prohibitive” economic provisions before Japanese investors, Pascual said, “That is an internal matter for the Philippines.”
“Currently, I don’t think an international forum like what we have today is the forum to talk about it,” he said.
The Trade chief also reiterated his support for a proposal in Congress to amend the Constitution to ease restrictions on economic sectors.
“Such a move will make our country more competitive in attracting foreign investments needed for creating high-quality jobs for our people,” he said in a statement.
By easing restrictions on foreign ownership, Pascual said the Philippines can become a more attractive destination for international investors.
This can lead to an influx of capital, which can be used to invest in infrastructure, technology and job creation, he added.
Bills that pushed for ease of doing business, as well as the lifting of restrictions, include the Public Service Act, the Retail Trade Liberalization Act amendments signed into law last year, and the amendments to the Foreign Investments Act that was ratified by Congress also in 2022.
Marcos is in Tokyo for the 50th Association of Southeast Asian Nations (Asean)-Japan Commemorative Summit from December 15 to 18.
Joining Marcos were First Lady Marie Louise “Liza” Araneta-Marcos and other government officials.
In his departure statement at the Villamor Air Base in Pasay City on Friday morning, Marcos said the 50th Asean-Japan Friendship and Cooperation Commemorative Summit gives the Philippines an advantage to affirm its position on current international issues and advance its interests.
He said that the summit was also an opportunity to welcome the conferment of comprehensive partner status in Japan.
The Philippines-Japan relations were established on July 23, 1956.
Japan is one of the country’s three strategic partners with 264 bilateral agreements, which include the transfer of defense equipment and technology, infrastructure and Mindanao development.
Japan is also the Philippines’ second largest trading partner in 2022 after it recorded a total trade of $23.49 billion, up by 10.9 percent from the $21.83 billion recorded in 2021.
In the same period, exports and imports were valued at $11.13 billion and $12.35 billion, respectively.
Manufacturing, IT-BPM, electronic design services, PPP projects, agribusiness and aquaculture, and SME (cluster/supply chain building projects) are the priority sectors for investment promotion of the Philippines to Japan.
Japan is also the largest source of Official Development Assistance for the Philippines, with a share of 40.49 percent or $12,923.99 million of the country’s total portfolio.
It is likewise the second largest source of grant assistance, accounting for 28.93 percent, or $577.72 million, of the total grants’ portfolio.
According to government data, Japan also serves as home to 331,523 registered Filipinos.
‘Symbol of strong commitment’
Speaker Ferdinand Martin Romualdez on Saturday believed that the participation of the President in the Asean-Japan commemorative summit is a “symbol” of the country’s unwavering commitment to strengthening ties between Japan and fellow members of Asean.
Romualdez is also part of the President’s entourage.
“President Marcos’s presence at this landmark event is a powerful symbol of the Philippines’ unwavering commitment to strengthening its ties with Japan and further elevating our collective partnership within the Asean bloc,” Romualdez said in a statement.
With Asean and Japan celebrating its 50th year of friendship and cooperation, Romualdez also believes that the anniversary presents a “unique opportunity” to not only celebrate past achievements but also chart a brighter, more prosperous future for the region.
Romualdez also expressed optimism that Marcos will play a key role in advancing crucial discussions on key regional issues, including enhanced Japan-Philippines economic cooperation.
The President’s focus on infrastructure development, renewable energy, and digital transformation also aligns with the nation’s expertise and strategic investments in the region, Romualdez said.
Romualdez also said that the summit provides an opportunity to promote enhanced maritime and security cooperation between the two countries, especially with the country facing maritime challenges in the West Philippine Sea.
He also said that the summit presents an ideal platform to strengthen people-to-people linkages and cultural exchange between Asean and Japan, citing the success of the Japan-East Asia Network of Exchange for Students and Youths (Jenesys) Program.
“Our shared history, cultural ties, and common aspirations for a peaceful and prosperous region form a strong foundation for this partnership,” Romualdez said.
Romualdez hopes that Marcos’s insightful vision and unwavering commitment to regional cooperation will lead to concrete initiatives and agreements during the summit that would benefit not only the Philippines and Japan but also Asean member states.
“This golden anniversary summit carries immense potential to redefine the Asean-Japan relationship and usher in a new era of progress and prosperity for all. With President Marcos at the helm, we are confident that the Philippines will play a central role in making this vision a reality,” Romualdez said.
Source : Manila Times
