At least PHP288.804 billion worth of business agreements and letters of intent were signed between the Philippines and Japan on the sidelines of President Rodrigo Duterte’s working visit to Japan.
PHILIPPINE and Japanese firms are set to sign various business agreements at the end of the month, according to the Department of Trade and Industry (DTI), which said the deals are worth close to P300 billion ($5.74 billion) and hold the potential to create at least eighty thousand jobs.
The DTI said the deals were signed during President Rodrigo R. Duterte’s visit to Japan for the Nikkei 25th International Conference on The Future of Asia on May 30 to 31 where he will be accompanied by a government and business delegation.
The investment pledges will focus on infrastructure, manufacturing, electronics, medical devices, business process outsourcing (BPO), power, electricity, transport, automotive, food manufacturing, and marine manpower. The DTI will also hold a business forum and roundtable discussions with Japanese investors, which will serve as an opportunity for more in-depth business-to-business interactions.
In 2018, Japan was the Philippines’ second-largest trading partner with total trade of $20 billion — $9.5 billion worth of exports to Japan, and $10.5 billion worth of imports from Japan. The country is the Philippines’ third-largest export market and source of imports.
If the Regional Comprehensive Economic Partnership between the 10 ASEAN member-states and six Asia-Pacific states goes ahead, the pact will effectively be the Philippines’ third free trade agreement with Japan.
Presidential Spokesperson Salvador Panelo said the 26 signed agreements show Japanese business leaders’ confidence in the Philippines as an “investor haven.” “These agreements emphasize the confidence the Japanese business leaders have on the Philippines as an investor haven under the vibrant and decisive leadership of President Rodrigo Roa Duterte,” Panelo said in a statement.
Trade Secretary Ramon Lopez said the 26 agreements are expected to generate an estimated 82,737 jobs in the Philippines.
The 26 deals signed deals are:
1) Memorandum of Cooperation: Department of Trade and Industry and Japan External Trade Organization
Signatories: DTI Secretary Ramon Lopez and Mr. Nobuhiko Sasaki, Chairman and CEO, Japan External Trade Organization Enhance bilateral cooperation on investment promotion activities between the Philippines and Japan
2) Memorandum of Understanding: EMS Group, Tescom Denki Co. Ltd. and Outsourcing, Inc.
Signatories: Ferdinand A. Ferrer, Chairman and CEO, EMS Group and Mr. Toshiya Kusuno, CEO, Tescom Denki Co. Ltd., and Mr. Atsushi Nakamoto, Senior Executive Director, Outsourcing, Inc.
Partnership in skills training and human resource development and deployment, manufacturing, and assembly
3) Memorandum of Understanding: Advanced World Systems, Inc. Alsons/AWS Information Systems, Inc. and Ubicom Holdings, Inc.
Signatories: Mr. Akira Konishi, President and CEO, Advanced World Systems, Inc. and Mr. Ramil L. Villanueva, Vice President, Advanced World Systems, Inc. Alsons/AWS Information Systems, Inc. and Mr. Masayuki Aoki, President and CEO, Ubicom Holdings, Inc.
Outsourcing of projects involving software development, testing, and maintenance in the following areas: 1) R&D on Data Analytics, Artificial Intelligence, Automation, Internet of Things, 2) Enterprise Systems and Web Applications Development, 3) Automotive Software Development, 4) Embedded Systems Development, 5) Mobile Systems Development, and 6) Product Quality Assurance and Testing
4) Joint Venture Agreement: Bases Conversion and Development Authority and Meralco Marubeni Consortium
Signatories: Mr. Vivencio B. Dizon, President and CEO, Bases Conversion and Development Authority and Mr. Rogelio Singson, President and CEO, Meralco PowerGen Corporation (authorized representative of the Meralco Marubeni Consortium) and Mr. Shigeru Yamazoe, Vice Chairman, Marubeni Corporation, Mr. Yoshihiro Doi, Executive Vice President, Kansai Electric Power Co., Inc., Mr. Yuta Kano, Manager-International Business Development Corporate Planning & Strategy Division, Chubu Electric Power Co., Inc., Mr. Takuman Hatano, President and CEO, Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (witness)
Financing, design, engineering, establishment, construction, development, and operation and maintenance of the electric power distribution system in New Clark City
5) Master Franchise Agreement
Signatories: Dr. Jaime Tan Cruz, Mr. Kimberly Justine Yang Cruz, Dohtonbori Philippines, Inc., and Hiroyuki Inaba, Mr. Satoshi Yokote, Dohtonbori Company Limited
Grant of development rights for the “Dohtonbori Okonomiyaki” restaurant business within the Philippines
6) Franchise Agreement
Signatories: Dr. Jaime Tan Cruz, Mr. Kimberly Justine Yang Cruz, Karayama Philippines, Inc., and Mr. Kenichiro Usui, Arcland Service International Co., Limited
Grant of the license to open and operate Karayama outlets within the Philippines
7) Memorandum of Understanding: Asia Defense and Armament Corp., Kenko Tokina Co., Ltd. and Diversified Ecozone Corporation
Signatories: Ms. Maria Monica G. Reyes, Director, Asia Defense and Armament Corp.; Ramon C. Garcia, President, Diversified Ecozone Corporation; Mr. Toru Yamanaka, President, Kenko Tokina Co., Ltd.
Establish a manufacturing facility in the Philippines for optics equipment, injection molded holsters, and related equipment to supply customized equipment for the AFP, PNP, and other defense units of the Philippine government
8) Letter of Intent: Toyota Motor Corporation
Signatories: DTI Secretary Ramon Lopez and Mr. Matsuda Susumu, Deputy CEO, China, and Asia Region, Toyota Motor Corporation
Additional investments for further parts localization under the CARS Program, including side member panels, radiator assembly, fan assembly with motor, and FR axle assembly.
9) Letter of Intent: Murata Manufacturing Co. Ltd.
Signatories: DTI Secretary Ramon Lopez and Mr. Masahiro Ishitani, Executive Vice President, Capacitor Division, Components Business Unit, Murata Manufacturing Co. Ltd.
Expand manufacturing capacity of the Philippine Manufacturing Co. of Murata Inc. (PMM) to service demands of existing customers, accommodate new customers, and anticipate an increase in sales of multilayer ceramic capacitors.
10) Letter of Intent: Aeon Fantasy Co. Ltd.
Signatories: DTI Secretary Ramon Lopez and Mr. Wataru Koiwa, Senior General Manager of Overseas Business Department; Senior General Manager of Indoor Playground Business, Aeon Fantasy Co. Ltd.
Increase investments in the country for indoor theme parks and amusement facilities through the local subsidiary.
11) Letter of Intent: Sojitz Corporation (Sojitz Fuso Truck)
Signatories: DTI Secretary Ramon Lopez and Mr. Takashi Hara, Representative Director, Vice Chairman, Sojitz Corporation
Expand investments in the distribution of Fuso truck and bus products through the local subsidiary.
12) Letter of Intent: Sojitz Corporation (Bakery Project)
Signatories: DTI Secretary Ramon Lopez and Mr. Takashi Hara, Representative Director, Vice Chairman, Sojitz Corporation
Invest in bakery company (Nippon Premium Bakery Inc.) and the upstream business through flour milling and other ancillary services.
13) Letter of Intent: Sojitz Corporation (Industrial Estate Project)
Signatories: DTI Secretary Ramon Lopez and Mr. Takashi Hara, Representative Director, Vice Chairman, Sojitz Corporation
Co-development of a general industrial park
14) Letter of Intent: JACCS Co. Ltd.
Signatories: DTI Secretary Ramon Lopez and Mr. Yasuyoshi Itagaki, Chairman, CEO and Representative Director, JACCS Co. Ltd.
Invest in the credit and finance business by extending credit facilities to individual and corporate buyers.
15) Letter of Intent: Terumo Corporation
Signatories: DTI Secretary Ramon Lopez and Mr. Toshiyuki Akaike, President, Terumo (Philippines) Corporation
Expand investments in manufacturing, selling, and exporting medical devices (disposable syringes, needles, safety-needles, IV catheters, and urinary drainage bags) and the development of new products and new technologies in sterilization capability and eco- and smart factories.
16) Letter of Intent: Ibiden Co. Ltd.
Signatories: DTI Secretary Ramon Lopez and Mr. Koji Kawashima, Senior Managing Officer, Ibiden Co. Ltd.
Expand existing investments in the manufacture of Flip Chip Ball Grid Array (FC-BGA) products, as well as capacity to cater to new drivers of growth such as artificial intelligence and establishment of data centers.
17) Letter of Intent: Sumitomo Electric Industries, Ltd.
Signatories: DTI Secretary Ramon Lopez and Mr. Osamu Inoue, President and COO, Sumitomo Electric Industries, Ltd.
Build a new facility for the wiring harness and related products for export to Japan and North America.
18) Letter of Intent: Mitsui & Co., Ltd.
Signatories: DTI Secretary Ramon Lopez and Tetsuya Daikoku, Managing Officer and Chief Operating Officer of Mobility Business Unit I, Mitsui & Co., Ltd., and Mr. Alfred V. Ty, Vice Chairman, GT Capital Holdings, Inc.
Develop the Philippine automotive industry through a local partner (GT Capital Holdings, Inc.)
19) Letter of Intent: Marubeni Corporation
Signatories: DTI Secretary Ramon Lopez and Shigeru Yamazoe, Vice Chairman, Marubeni Corporation
Develop possible new and existing infrastructure projects in energy development, New Clark City, railways, and water services
20) Letter of Intent: Furukawa Electric Co., Ltd.
Signatories: DTI Secretary Ramon Lopez and Mr. Keiichi Kobayashi, President, Furukawa Electric Co., Ltd.
Expand the production capacity of the local wholly-owned center for wire harnesses
21) Letter of Intent: Lawson, Inc.
Signatories: DTI Secretary Ramon Lopez and Mr. Sadanobu Takemasu, President and CEO, Representative Director, Lawson, Inc.
Expand investments through the opening of additional convenience stores
22) Letter of Intent: Japan Marine United Corporation and Marubeni Corporation
Signatories: Mr. Itoh Mamoru, Director, and Senior Managing Officer, Naval Ship and Marine Division, Japan Marine United Corporation and Mr. Okazaki Toru, Senior Operating Officer, Aerospace and Ship Division; General Manager, Aviation, Space and Defense Department, Marubeni Corporation
Develop the country’s maritime safety capability by providing maritime expertise, including but not limited to the service of design and construction of ships
23) Letter of Intent: Canon Inc.
Signatories: DTI Secretary Ramon Lopez and Mr. Fujio Mitarai, Chairman and CEO, Canon, Inc.
Expand existing investments in the Philippines for monochrome laser beam printers, including service parts, packaging materials, and optional products
24) Letter of Intent: Nidec Corporation
Signatories: DTI Secretary Ramon Lopez and Go Watanabe, First Senior Vice President, Nidec Corporation
Expand current investments in the Philippines as a manufacturer of hard disk drives, spindle motors, and related parts
25) Letter of Intent: Mitsubishi Motors Corporation
Signatories: DTI Secretary Ramon Lopez and Mr. Yoichiro Yatabe, Corporate Vice President, Division General Manager, ASEAN Division, Mitsubishi Motors Corporation
Expand current investment to support local production of completed vehicles
26) Letter of Intent: Tokyo Gas
Signatories: Mr. Takashi Uchida, President, and Representative Director, Tokyo Gas Co., Ltd.
Create an inter-island liquefied natural gas (LNG) distribution network to serve new markets for natural gas in the Philippines.
With additional reports: bworldonline.com, pga.gov.ph
Image source:
- https://news.abs-cbn.com/news/10/24/16/duterte-to-discuss-anti-us-remarks-with-abe-source
- https://tribune.net.ph/index.php/2019/06/01/gold-standard/
- https://tribune.net.ph/index.php/2019/05/27/phl-japan-to-ink-p300b-deals/
- https://tribune.net.ph/index.php/2019/05/30/confidence-vote-cast/
