The Market Monitor Minding the Nation's Business
By Rose de la Cruz
High-level Philippine economic managers met with the Japanese business leaders recently highlighting the growth and investment opportunities in the country during the Philippine Economic Briefing on June 21 that saw 500 participants from the Japanese business community.
The briefing’s theme: “PH On the Go: Fast tracking Economic Progress,” saw the participation of several Cabinet members led by Special Assistant to the Presidnet (SAP) for Investment and Economic Affairs Frederick D. Go sharing updates on the country’s promising outlook and growth story and the progress of government’s plans toward building a resilient, inclusive and sustainable economy.
Go also cited the current administration’s programs and reform initiatives to further accelerate growth and foreign investments in the Philippines. He said, “There is no better time than now for investors to consider being part of the Philippine growth story.”
The keynote, delivered by Finance Secretary Ralph G. Recto, highlighted the strong and long-standing bilateral ties between the Philippines and Japan, tagging it as “the Philippines’ best friend in the region.”
Recto urged Japanese investors to take part in the country’s promising growth narrative as the country “has all the makings of a tiger economy.” He cited Japan as the largest investor in the Philippines’ economic zones, with a number of 806 locator companies to date.
The first panel session entitled “Shaping a Macroeconomic Landscape Conducive for Investments” had BSP Deputy Governor Francisco G. Dakila, Jr. talking about the latest BSP forecasts on foreign direct investments (FDIs) and factors affecting the outlook.
Dakila stressed the BSP has upgraded its forecast for net FDI in its second quarter projection around for the Balance of Payments.
“We were initially projecting a USD9 billion net FDI position in the first quarter. We have upgraded that to USD9.5 billion. And actually, this is still very conservative, as much as in 2023, we have already achieved USD8.9 billion. That projection is premised on both push and pull considerations,” he explained.
He added that the BSP raised the net FDI outlook mainly on the back of positive global economic growth prospects and the Philippine government’s commitment to attaining its growth targets.
From 2019 to February 2024, Japan was the second largest source of Philippine FDIs, contributing an average share of 28.9 percent to net equity other than reinvestment of earnings during the period, next to the 39.1 percent share from economies in the Association of Southeast Asian Nations (ASEAN) region.
“We are very happy that Japan is both recognizing the potential of the country and supporting Philippine economic growth,” said DG Dakila.
Joining Deputy Governor Dakila as discussants for the first panel session were SAP Go, Finance Secretary Recto, Budget Secretary Amenah F. Pangandaman, Socioeconomic Planning Secretary Arsenio M. Balisacan, and Managing Director Chiwoong Lee of Morgan Stanley MUFG Securities. The session was moderated by Nomura Philippines, Inc. President and Country Head Miguel Antonio L. Ozaeta.
The second panel session, themed Navigating PH’s Investment Landscape: Where to Invest?” was led by Trade Secretary Alfredo E. Pascual.
Pascual highlighted existing government initiatives, such as the Strategic Investment Priority Plan (SIPP), the Build Better More program, the amendments to the Renewable Act, as well as the Regional Comprehensive Economic Partnership (RCEP), which offer numerous opportunities for Japanese firms to invest, partner with, or expand their existing investments in various sectors of the economy — from manufacturing to transportation to healthcare as well as information and communications technology, among others.
Joining Secretary Pascual as discussants for the second panel session were Transportation Secretary Jaime J. Bautista, Energy Undersecretary Felix William B. Fuentebella, and Bases Conversion and Development Authority President and Chief Executive Officer Joshua M. Bingcang. The session was moderated by BSP Communications and Investor Relations Lead Francisco Alcuaz, Jr.
Also present at the PEB was Philippine Ambassador to Japan Mylene J. Garcia-Albano.
Attendees to the briefing included Sumitomo Mitsui Financial Group President and Chief Executive Officer Toru Nakashima; Tsuneishi Holdings Corporation Chairman Kenji Kawano; and Tsuneishi Shipbuilding Co. Ltd. Representative Director, Vice President and Executive Officer, and Chief Country Officer Hitoshi Kono.
The PEB provided a platform to update the Japanese business community on our country’s economic progress and the government’s initiatives to further attract investments.