17-12-2023 (MANILA) The Philippines is poised to sign over five business agreements with Japanese firms on the sidelines of the ASEAN-Japan Commemorative Summit, according to statements from Trade Secretary Alfredo Pascual. These memoranda of understanding (MOUs) signify a commitment from Japanese business groups to invest significantly in the Philippines.
Pascual, part of the Philippine delegation to the summit, highlighted the seriousness of Japanese companies expressing interest in the country. When questioned about the number of deals, he confidently stated, “More than five definitely,” adding that the details would be discussed later.
While Foreign Affairs Assistant Secretary Daniel Espiritu hinted at agreements involving the creative and information technology sectors in a previous briefing, Pascual refrained from disclosing specifics. He emphasised the broader policy of the administration, inviting foreign investors, especially Japanese, to operate in the Philippines to generate higher quality and better-paying jobs.
President Marcos, attending the summit in Tokyo, marks his second visit to the city and the 19th overseas trip since assuming the presidency in 2022.
The total trade between the Philippines and Japan reached $23.49 billion last year, a 10.9% increase from $21.83 billion in 2021, according to government data. Japan stands as the second-largest trading partner of the Philippines in 2022. Priority sectors for investment promotion include manufacturing, information technology-business process management, electronic design services, public-private partnership projects, agribusiness, and aquaculture, as outlined by the Presidential Communications Office.
Japan holds the position of the second export destination and the third import source for the Philippines in 2022, also being the largest source of official development assistance as of June 2023.
Responding to critics of President Marcos’ visit, Pascual defended the trips, noting that investments often materialise outside of publicly announced pledges. He explained that investment promotion goes beyond signing MOUs and receiving letters of intent, aiming to invite a broader audience to consider the Philippines for investment opportunities.
Speaker Martin Romualdez, part of the official delegation, sees the President’s trip as crucial for security, peace, and progress in the Philippines and the entire ASEAN region. Romualdez anticipates that the summit will play a vital role in advancing discussions on key regional issues, including enhanced Japan-Philippines economic cooperation. He emphasised the shared history, cultural ties, and common aspirations for a peaceful and prosperous region, stating that the summit holds “immense potential” to redefine the ASEAN-Japan relationship and usher in a new era of progress and prosperity for all.
