Japanese investors remain confident on RP economy

Japanese investors remain confident on the Philippine business horizon notwithstanding the peace and order situation here. A number of Japanese businessmen, however, are maintaining a wait and see attitude currently being a political season in the country.

Of the more than a thousand Japanese firms in the country, not one has stopped nor plan to stop operations, said Toshio Asakura, executive director of the Japan External Trade Organization (JETRO) at the annual meeting of the Philippine Die & Mold Association, Inc. at Philippine Columbian Association where he tackled the areas of cooperation between PDMA, an association of Filipino businessmen engaged in the manufacture of automotive, electrical and electronics parts, and Japanese assembler companies operating in the country.

Asakura said since 2001 JETRO, in cooperation with PDMA, the Metals Institute & Research Development Center and the Board of Investments has been implementing the supporting industries promotion programs designed to upgrade the technical skills and strengthening competitiveness of Philippine manufacturers, a move aimed at further strengthening economic partnership between Filipino and Japanese enterpreneurs.

Asakura lamented, however, the results of survey conducted by JETRO in November last year where local procurement ratio of the Japanese-affiliated companies in the Philippines was the lowest among the ASEAN countries. This stark finding, he said, should serve as a wake up call for Filipino manufacturers to exert more efforts to engage in parts manufacturing to meet the needs and requirements of Japanese assembler companies.

Today, according to Asakura, many companies in the Philippines are in severely tight situation, specially those businesses that are in competition, pricewise, with imports from China. However, the Japanese government and many Japanese companies believe it is wise to develop the industries in the Philippines by maximizing on the use of its excellent inherent qualities. For this purpose, he said. JETRO opened its Business Support Center in March this year to promote cooperation between Japanese and Filipinos and to elevate the status of the PDMA.

He sees 2004 as a significant year for economic relations between Japan and the Philippines with the creation of the Japan-Philippines Economic Partnership Agreement, which is expected to commence soon, will further revitalize Japan’s trade with the Philippines.