Japan and Asean ties

Last Saturday, I headed home from Japan where I attended several meetings as part of my job as chair of the ASEAN Business Advisory Council. Japan is one of my favorite places to visit because, like any foreign visitor who’s been to this country, it is amazing to behold its efficiency, its culture and of course, its food.

On this visit, the ASEAN-BAC team was lucky enough to visit Suzuhiro Kamaboko, a renowned 160-year-old family-owned company known for its premium all-natural fish cakes crafted through traditional methods and sustainable practices. The visit was more than just a tourist stopover; it was part of our ASEAN Food Security Alliance initiative, through which we hope to explore potential partnerships to support sustainable agribusiness and food innovation.

This is but one of many productive interactions we had over the week we were in Japan. The country has long been one of ASEAN’s most trusted partners – not only as an investor and technology leader, but as a steady force for regional cooperation, stability and inclusive growth.

Japan has also been a reliable ally of MSMEs. In fact, the government of Japan, through the Japan ASEAN Integration Fund, funded the ASEAN Mentorship for Entrepreneurs Network (AMEN), the highly successful legacy project of our chairship of ASEAN-BAC in 2017. Through AMEN, we were able to mentor hundreds of MSMEs from ASEAN member-states through modules based on Go Negosyo’s Kapatid Mentor ME program with the Department of Trade and Industry.

Through their support of AMEN, the government of Japan helped hundreds of SMEs, which make up 96 percent of the total enterprises and generate more than 80 percent of jobs in the region, a figure that is significantly higher than the Philippines’ average of 66.5 percent.

Hard to believe but even in Japan, small and medium-sized enterprises represent almost all businesses. While the country certainly has giants such as Marubeni and Toyota, the economy is largely underpinned by millions of smaller enterprises. The key difference, I think, is that Japan has mostly small and medium firms, whereas in the Philippines, micro-enterprises account for roughly 90 percent.

This distinction matters because the pattern of firms graduating to larger categories – moving from micro to small to medium – signals an environment that supports economic dynamism and opportunity. If we can encourage Philippine micro-enterprises to grow into small businesses, small enterprises into medium-sized firms and ultimately help some medium firms scale into large companies, then we can be confident that our efforts are strengthening a crucial part of the economy, not to mention translating into more employment opportunities for Filipinos.

Japan can surely show the way in how we grow our MSMEs and, further down the line, how we generate more jobs. With lessons from their sustainable agriculture and food manufacturing practices, we stand to learn much in securing ASEAN’s food supply, especially in these times of supply chain disruption and economic uncertainty.

Also during our Japan visit, I delivered a keynote address at the East ASEAN Business Forum, where I invited business leaders from across the Southeast and East Asian region, not only to participate in the Food Security and Agribusiness Summit in August and the ASEAN Business and Investment Summit in November, but also to become partners in shaping ASEAN’s future. I said that ASEAN and Japan share the same strategic interests: a stable region, resilient economies, open trade, strong supply chains and prosperity that reaches all sectors of society.

This message I echoed throughout the high-level engagements we had for the week: with Japan’s most influential business organizations, including Keidanren (Japan Business Federation), the Japanese Chamber of Commerce and Industry and Keizai Doyukai (Japan Association of Corporate Executives), with the Japan External Trade Organization and the ASEAN-Japan Center; with the key Japanese institutions supporting MSME growth and innovation, including SMRJ, Organization for Small & Medium Enterprises and Regional Innovation Japan and the SME Agency under Japan’s Ministry of Economy, Trade and Industry. I emphasized this in my interview with Nikkei Asia and at my meeting with the top executives of Marubeni Corporation.

In all my conversations, I emphasized how Japan’s role is more important than ever. For decades now, Japanese businesses have helped build industries, strengthen supply chains, transfer technology and create jobs across ASEAN. For the Philippines, it has brought stability, innovation, long-term thinking and trusted partnerships with both the public and private sectors.

ASEAN today must focus not only on growth, but also on resilience. Not only on competitiveness, but also on inclusion. And not only on national priorities, but also on stronger regional cooperation.

As ASEAN-BAC chair, I believe Japan can help lead the next phase of ASEAN’s development in three critical areas, namely resilient supply chains and food systems; digital and industrial transformation through technology, innovation and skills development and inclusive growth, especially for MSMEs, startups, women-led enterprises and the youth.

Our 2026 chairship will be particularly relevant for Japan as we will embark on the next phase of AMEN and go full speed ahead with the ASEAN Food Security Alliance, our legacy projects from our previous and present chairship of the ASEAN-BAC.

Moreover, we will convene major platforms on energy resilience, food security, MSME development and digital transformation and AI. On the shorter horizon, our meetings this past week with the Japanese business leaders will result in several MOUs and MOAs, which will give us a solid way forward toward productive and long-term partnerships.

It’s a good start, and as an incurable optimist, I plan to deepen this cooperation even further – not only between ASEAN and Japan, but across the broader East Asia region. Because when ASEAN works with its neighbors in the region, with urgency, inclusivity and shared purpose, we will realize prosperity for all.