Duterte invites Japanese to join 'Build, Build, Build' projects

'Let us work together to Grow-Grow-Grow our economies'

TOKYO — President Rodrigo Duterte on Wednesday vowed a corrupt-free and competitive business environment in the Philippines as he promised to "kill" the problems that are plaguing investors. 

Duterte said he was ready to place his honor and persona at stake on the line for his bid against corruption, obstruction and other issues that can affect the ease of doing business. 

"I will give you at any hour of the day or night you can contact any of the cabinet members or your Filipino lawyers or Filipino workers, and you can ask (for) an audience with me in 24 hours and I will talk to you and just let me know what your problem is and we will kill that problem," Duterte told Filipino and Japanese business executives here. 

"Well, short of. But as I am committed to do this, I place honor and my persona that what I guarantee here must be followed," he added. 

Duterte's statement was a take on his often repeated threat against drug lords whom he said are destroying the Philippines.

The president has been saying that he is ready to kill drug suspects and other criminals that pose a threat to the nation, a remark viewed by his critics as an encouragement to engage in extrajudicial killings. 

Duterte assured investors that his administration is committed to reforms that would create a climate conducive for investments. 

"With our sound macro-economic policies and (ongoing) reforms, we guarantee a competitive and corruption-free - and I repeat, we guarantee a competitive and corruption-free business climate, and a highly-skilled and fast-learning workforce," the president said. 

"May I just assure you that during my time I said there will be no corruption."

Duterte said his administration is "firmly committed" to maintain a stable and predictable environment for robust business partnerships between the Philippines and Japan.

'Grow, Grow, Grow'

Duterte also urged Japanese investors to take part in "Build, Build, Build," the government's ambitious infrastructure program worth P8.1 trillion. 

"We invite Japanese participation in our game-changing 'Build-Build-Build' infrastructure program which we aim to build inclusive and innovative industries and transform our economic archipelago into one of an integrated economic space," the president said. 

"More than Build-Build-Build, let us work together to Grow-Grow-Grow our economies," he added. 

Duterte noted that credit watchdog Standard and Poor’s has upgraded the Philippines’ credit rating to BBB+, with a positive outlook, the highest in the country's history and only a notch below the credit rating of A. 

"Given all these, your investments are assured of protection and gains I guarantee that," the president said. 

"And as a matter of fact, I place my honor in what we promised to our partners especially the Japanese and the Japanese people," he added. 

Duterte said Japan has been a major source of foreign direct investments and was even the second largest trading partner of the Philippines last year.  He also noted that Japan is the first and only country with which the Philippines has a bilateral foreign trade agreement namely the Philippines-Japan Economic Partnership Agreement.

The agreement, Duterte said, is being reviewed to upgrade it to a higher level of preferential arrangement that is mutually beneficial to the two countries.  

Duterte claimed  the Philippines is a "natural choice" for Japanese companies looking for manufacturing base in Southeast Asia, and aiming to serve the export markets of the region, Europe and the Americas because of preferential tariff arrangements.  

The Philippines is also an ideal base for high-value knowledge process outsourcing ventures that support the global operations of Japanese companies, he added.

"In the next few years, we anticipate increased trade and investment flows because of the strong momentum generated by decades of deep economic cooperation. This will be sustained by our natural economic complementarities and accelerated by the current efforts of our governments to lower barriers," the Philippine leader said. 

Duterte said the Philippines  continues to work with Japan to address the issue of economic market access for Philippine agricultural products like bananas, mangoes, and pineapples, as well as service suppliers in the construction of projects. The Philippines is also seeking an improved framework for the deployment of nurses and care health workers .

Business deals signed

Before the forum, a total of 26 deals worth P288.8 billion were signed by Philippine and Japanese companies. The deals are expected to generate 82,737 jobs.

Duterte said the signing of the deals was "a vote of confidence in the Philippines’ bright economic prospects."

The deals signed were:

- Memorandum of cooperation between the Department of Trade and Industry and Japan External Trade Organization

 - Memorandum of understanding between EMS Group, Tescom Denki Co. Ltd. and Outsourcing, Inc.

- Memorandum of understanding between Advanced World Systems, Inc. Alsons/AWS Information Systems, Inc. and Ubicom Holdings, Inc.

 - Joint venture agreement between the Bases Conversion and Development Authority and Meralco Marubeni Consortium

- Master franchise agreement granting development rights for the “Dohtonbori Okonomiyaki” restaurant business within the Philippines

- Franchise agreement to open and operate Karayama outlets within the Philippines

- Memorandum of understanding between Asia Defense and Armament Corp., Kenko Tokina Co., Ltd. and Diversified Ecozone Corporation

- Letter of Intent by Toyota Motor Corporation that could pave way to additional investments for parts localization under the CARS Program, including side member panels, radiator assy, fan assy with motor, and FR axle assy.

- Letter of Intent by Murata Manufacturing Co. Ltd. on the expansion of the manufacturing capacity of the Philippine Manufacturing Co. of Murata Inc. to service demands of existing customers, accommodate new customers, and anticipate increase in sales of multilayer ceramic capacitors.

- Letter of intent by Aeon Fantasy Co. Ltd. that may lead to increased investments for indoor theme parks and amusement facilities through its local subsidiary.

- Letter of intent by Sojitz Corporation that could lead to the expansion of investments in the distribution of FUSO truck and bus products through its local subsidiary.

- Letter of Intent by Sojitz Corporation on investments in bakery company (Nippon Premium Bakery Inc.) and the upstream business through flour milling and other ancillary services.

- Letter of intent by Sojitz Corporation (Industrial Estate Project) for the co-development of a general industrial park

- Letter of intent by JACCS Co. Ltd. on possible investments in the credit and finance business by extending credit facilities to individual and corporate buyers.

- Letter of intent by Terumo Corporation on possible expansion of investments in manufacturing, selling, and exporting medical devices and the development of new products and new technologies in sterilization capability and eco and smart factories.

- Letter of Intent by Ibiden Co. Ltd. on the possible Expansion of investments in the manufacture of Flip Chip Ball Grid Array products, as well as capacity to cater to new drivers of growth such as artificial intelligence and establishment of data centers.

- Letter of intent by Sumitomo Electric Industries, Ltd., which aims to build a new facility for wiring harness and related products for export to Japan and North America.

- Letter of intent by Mitsui & Co., Ltd. on the possible development of Philippine automotive industry through local partner GT Capital Holdings, Inc.

- Letter of intent by Marubeni Corporation on possible development of. new and existing infrastructure projects in energy development, New Clark City, railways, and water services

- Letter of intent by Furukawa Electric Co., Ltd. on the possible expansion of the production capacity of the local wholly-owned center for wire harnesses

- Letter of intent by Lawson, Inc. on possible expansion of investments through the opening of additional convenience stores

- Letter of intent by Japan Marine United Corporation and Marubeni Corporation on the development of the country’s maritime safety capability by providing maritime expertise, including but not limited to the service of design and construction of ships

- Letter of intent by Canon Inc. on the possible expansion of investments for monochrome laser beam printers, including service parts, packaging materials, and optional products

- Letter of intent by Nidec Corporation on possible expansion of investments as manufacturer of hard disk drives, spindle motors, and related parts

- Letter of intent by Mitsubishi Motors Corporation on the expansion of investments to support local production of completed vehicles

- Letter of intent by Tokyo Gas on the creation of an inter-island liquefied natural gas distribution network to serve new markets for natural gas in the Philippines.