...the Japanese innovation investment in PH

Japanese firms to invest $215 million in Philippine innovation projects

Business Mirror
04 November 2019

Japanese firms are investing $215 million in new projects and expansions in the Philippines, as they seek to take advantage of the growing innovation environment here.

On the sidelines of a business forum in Tokyo, Trade Undersecretary Rafaelita M. Aldaba met with Japanese manufacturers to pitch investment opportunities in the Philippines. A total of $215 million worth of projects, most of which related to innovation, were secured during these meetings.

The projects include the opening of the first MOS Burger, Japan’s second-largest burger joint, by March of next year, and the interest of Assemblepoint to develop smart four-wheel electric vehicle using latest Internet of Things technologies.

Also, Satelight is eyeing to outsource animation work from the Philippines, while Kanepackage is planning to build a new factory. Further, Sumitomo Wiring presented during the meetings its expansion projects on wiring harness and components production.

Marubeni Corp. also shared its joint-venture project with two local firms to put up 30 primary care clinics and 10 cancer centers, as well as install five centralized laboratory testing hubs in strategic urban areas.

“There are many potential opportunities for the Philippines and Japan to deepen trade and investment partnership through innovation. I am delighted that the companies I met during this trip are making significant contributions in the areas of creating new industries, products and leapfrogging to Industry 4.0 by adopting smart manufacturing to transform our industries,” Aldaba said in a news statement issued on Monday.

Aside from those who committed to invest, there were investment intentions in infrastructure development, railways, electric vehicle public transport system, retail, manufacturing, logistics, warehousing, factory automation, construction and real estate.

Last week Aldaba presented the government’s Inclusive Innovation Industrial Strategy to over 600 Japanese investors at the Philippine-Japan Business Investment Forum organized by the Nikkei Business Publications Inc. Aldaba discussed the areas where Manila and Tokyo can collaborate under the i3s, which is geared toward improving the manufacturing, agriculture and services sectors of the country.

“In the context of these trade and investment trends between the Philippines and Japan, along with global developments, such as the entry of new technologies, we feel the need to focus our efforts on innovation to address the opportunities and challenges arising from Industry 4.0, but also from increasing global competition, United States-China trade war and regional economic integration,” Aldaba added.

Last year Japan is the country’s third-largest foreign source of investments. Based on records from the Philippine Statistics Authority, Japanese investments in 2018 declined 38.33 percent to P19.72 billion, from P31.98 billion in 2017.