Japan firms to boost PHL investments

By Chloe Mari A. Hufana, Reporter and Beatriz Marie D. Cruz, Senior Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. secured around P260 billion in investment pledges from top Japanese companies during meetings in Tokyo, as Manila seeks to attract supply-chain relocation and shield the economy from geopolitical tensions and rising energy risks.

“The Philippines is pursuing a clear national direction: building an economy where infrastructure, industry, finance, human capital and connectivity move together as one system of growth,” Mr. Marcos told executives from Japanese conglomerates and financial institutions on Wednesday.

“And increasingly, we recognize that trade and tourism will be among the most important engines of that growth,” he added.

Of the amount, $3.4 billion or around P210 billion are expected to support manufacturing, tourism infrastructure, renewable energy and supply-chain development.

Mr. Marcos on Thursday secured another P53.6 billion in potential investments from Japanese firms that are planning to expand operations in the country. These investments are expected to generate around 10,300 additional direct and indirect jobs for Filipinos.

In a Facebook post, Mr. Marcos said MinebeaMitsumi, Inc.  is planning to expand its investments in the Philippines, with P25 billion to be allocated for its projects in Cebu, Batangas and Bataan. MinebeaMitsumi is involved in the manufacturing of semiconductors, battery protection modules for hyperscale data centers, among others.

The President said he met with the executives of Furukawa Electric Co. Ltd. to discuss the firm’s P17-billion expansion project in the Philippines. The project involves the production of advanced heat sink modules and thermal management products used in global electronics and digital infrastructure applications.

Mr. Marcos said Sumitomo Electric Industries, Ltd. pledged a P4.3-billion investment to expand their advanced electronics manufacturing operations in Laguna.  This will involve the construction of a new facility run by their Philippine unit First Sumiden Circuits, Inc., the country’s only manufacturer of flexible printed circuits.

“Their new facility will help position the Philippines deeper into global supply chains for electric vehicles, AI (artificial intelligence)-related electronics, and advanced telecommunications,” he said.

The President also had a meeting with executives of Tsuneishi Group Corp. to discuss the company’s planned expansion of shipyard facilities in Balamban, Cebu, as well as the continued development of environmentally sustainable next-generation vessels.

Once the expansion is completed, the Philippines is expected to become the world’s fourth-largest shipbuilding nation, after China, Japan, and South Korea. The commitments come as the Marcos administration pushes to sustain economic growth despite elevated oil prices, supply disruptions and trade uncertainty linked partly to the war in the Middle East.

Mr. Marcos used the roundtable meeting to position the Philippines as a long-term investment destination for Japanese firms seeking to diversify operations across Southeast Asia, particularly as companies reassess regional supply chains amid global tensions.

The Palace said the investments are expected to create thousands of jobs while supporting technology transfer and industrial expansion.

Mr. Marcos assured Japanese partners of his administration’s move to improve institutional bottlenecks and long-term investment stability.

“To all our Japanese partners, you know the Philippines not from reports, but from experience,” he said. “You know our workforce: skilled, adaptable, and globally competitive… resilient in adversity, ambitious in opportunity, and increasingly connected to global trade and tourism flows.”

Mr. Marcos is in Tokyo for a state visit, the first for a Philippine leader after 11 years. His visit coincided with the 70^th year of the normalization of Manila and Tokyo’s diplomatic ties.

Trade Secretary Maria Cristina A. Roque said the Philippines is targeting more high-technology and green manufacturing investments as Japanese companies boost regional production networks.

“Our message is clear: the Philippines is open, ready, and highly capable of supporting the rapid expansion and resilience of Japanese global value chains,” she said in the same statement.

“We are aggressively positioning the Philippines as your strategic hub in ASEAN (Association of Southeast Asian Nations) for smart manufacturing, green metals, and renewable energy,” she added.

Tourism Secretary Maria Bernardita Angara-Mathay said the government is also looking to attract investments in eco-tourism, hospitality development and aviation connectivity, sectors expected to benefit from a recovery in regional travel demand.

“Tourism is a massive engine for infrastructure and commercial investment,” she said in the same statement. “By synergizing with our trade initiatives, we are opening up high-value opportunities in hospitality facilities, eco-tourism development, and aviation connectivity, ensuring that investments in Philippine tourism yield robust, long-term returns.”

SMART CITIES, FINTECH
Meanwhile, Philippine and Japanese companies have signed three key agreements that seek to boost smart cities development, digital connectivity, and financial technology (fintech) in the Philippines, the Presidential Communications Office (PCO) said.

In a statement on Thursday, the PCO said Ayala Corp. (AC), the Philippines’ oldest conglomerate, signed three memoranda of understanding (MoUs) with major Japanese companies during Mr. Marcos’ four-day visit in Japan.

The PCO said that AC and Ayala-led Globe Telecom, Inc. signed an MoU with Japan’s Mitsubishi Corp. and KDDI Corp. to establish “Intelligent City” initiatives in Makati City, which could be expanded to other urban areas.

Mitsubishi Corp. is a multinational conglomerate with operations across machinery, energy, and automotive, while KDDI Corp. is a Japanese telecommunications firm ranked among the Fortune Global 500 Companies.

According to the PCO, the “Intelligent City” project will leverage AI, Internet of Things, urban data integration platforms, and advanced telecommunications solutions to improve transportation, retail and commercial services, energy management, and digital city services.

AC and Globe Fintech Innovations, Inc. (Mynt) inked a separate MoU with Mitsubishi to develop “Smart Life” digital services. The initiative, which aims to make Filipinos’ digital transactions more convenient, is expected to generate around P7 billion in revenues.

The partnership will cover rewards programs, ticketing services, online payment platforms, and digital marketing solutions, PCO said.

AC and Mynt, the parent firm of digital wallet GCash, also inked a separate MoU with Mitsubishi and Japanese bank holding company Mitsubishi UFJ Financial Group (MUFG) to expand GCash’s services in the Philippines and overseas.

The partnership is expected to help integrate GCash into AC and Mitsubishi’s business ecosystems across retail, real estate, energy, mobility, and digital services, the PCO said.

The initiative would focus on developing better digital payment systems, lending services, investment products, and stronger online security, it added.

AC President and Chief Executive Officer Cezar P. Consing said its partnerships with Japanese firms align with its push to build more inclusive financial systems while helping more Filipinos participate in the digital economy.

“These partnerships reflect our shared commitment to nation-building, leveraging innovation, infrastructure, and technology to support the Philippines’ long-term growth,” he said in a separate statement.

Angelito “Lito” M. Villanueva, chairman of FinTech Alliance PH, said the Philippines’ recent partnerships with Japan would help boost the economy’s competitiveness.

“The future of economic competitiveness will belong to nations that can connect finance, infrastructure, and technology and the Philippines is now firmly entering that conversation alongside Japan,” he said in a Viber message.