The Market Monitor Minding the Nation's Business
Executive Secretary Ralph Recto and Finance Secretary Frederick Go, the duo most responsible for managing the Philippine economy, have placed their bets on Japan in charting the course of the economy in the next few years.
The TMM Business Section came to this conclusion as the joint meeting of the 42nd PHILJEC-JPECC was held last Thursday, and the pre-conference welcome dinner was held the night before that on Wednesday.
At the dinner attended by officials of the Economic Cooperation Committees of the Philippines and Japan, ES Recto stressed that the Philippines wants Japanese companies to deepen and expand their investment, pledging to accelerate decision-making and make rules more predictable as bilateral trade totaled P1.27 trillion in 2025.
Recto described Japan as one of the Philippines’ “most reliable partners,” citing its long-standing role in disaster response and infrastructure development.
“The Philippines is ready to do more business with you. We understand that investors do not ask for favors, only fairness, predictability, and speed,” Recto told business leaders and officials.
Following the meeting proper on Thursday, Secretary Go disclosed that the government hopes to sign 11 additional loan agreements valued at ¥371 billion (around P139 billion) in a bid to fast-track key infrastructure projects.
“We are targeting, this 2026, the signing of 11 additional loan agreements with a total estimated value of ¥371 billion or roughly $2.4 billion,” Secretary Go said.
“This reflects the continued alignment between our infrastructure priorities and Japan’s support,” he said.
NCR subway, Mindanao highway
The government is also looking to sign three loan agreements with the Japan International Cooperation Agency (JICA), proceeds of which will fund key projects like the Metro Manila Subway and the Central Mindanao Highway, Go said.
“Japan’s fiscal year 2025 concludes this March. The Philippines looks forward to the signing of three critical loan agreements with a total value of approximately $1.58 billion (around P91.2 billion) to be extended by JICA,” he noted.
The exchange of notes for a ¥21.6-billion (P8.1-billion) loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3 earlier in the month.
Top trading partner
Secretary Recto surely knows what the Japanese investors desire.
“You want clear rules. You want a coordinated government. And you want decisions made before opportunities expire,” Recto said, but he stopped short of saying the government can meet these basic requirements of investors.
Recto praised the continued official development assistance given by Japan and praised the Metro Manila Subway project as an example of Japanese engineering and reliability. The ES recognized that bilateral trade with Japan continues to be robust but “can still be revved up” by expanding both goods and services.
He also cited tourism as an emerging pillar of ties, noting that about 825,000 Filipinos visited Japan in 2025, reflecting growing people-to-people exchanges that complement trade and investment flows.
A dozen financing deals
Since the start of the Marcos administration, the Philippines and Japan have signed 12 financing deals worth ¥910.38 billion (about P341.2 billion).
Many of these projects are in its financing or construction stages.
“Each project reflects Japan’s reputation for quality infrastructure—durable, efficient, and future-ready. And each project reflects the Philippines’ determination to build better, faster, and smarter,” Finance Secretary Go said.
As of December last year, Japan accounted for $13.9 billion or 33.54% of the Philippines’ total official development assistance (ODA) portfolio.