INVESTMENT and trade deals valued at P288.804 billion were sealed between Philippine and Japanese companies during President Rodrigo Duterte's visit to Japan on Wednesday, May 29, 2019.
The business deals include one memorandum of cooperation, one joint venture agreement, one master franchise agreement, one franchise agreement, three memoranda of understanding (MOU), and 19 letters of intent (LOI).
The 26 projects are expected to generate 82,737 jobs in the Philippines.
In a keynote speech delivered during a business forum in Japan, the President expressed gratitude for the "strong intention" of Japanese firms to invest and expand business operations in the Philippines.
"It is a vote of confidence in the Philippines' bright economic prospects. Over the years, Japan has been a major source of foreign direct investments and a key trading partner of the Philippines, the second largest, in fact, in 2018," the President said.
"In the next few years, we anticipate increased trade and investment flows because of the strong momentum generated by decades of deep economic cooperation. This will be sustained by our natural economic complementarities and accelerated by the current efforts of our governments to low barriers," he added.
A memorandum of cooperation between the Department of Trade and Industry and Japan External Trade Organization was signed to enhance bilateral cooperation on investment promotion activities between the Philippines and Japan.
The Bases Conversion and Development Authority (BCDA) signed a joint venture agreement with Meralco Marubeni Consortium for the financing, design, engineering, establishment, construction, development, and operation and maintenance of the electric power distribution system in New Clark City.
A master franchise agreement was also inked to grant development rights for Japan's Dohtonbori Okonomiyaki restaurant business within the Philippines.
The two countries also signed a franchise agreement for the grant of license to open and operate Japan's Karayama within the Philippines.
EMS Group and Tescom Denki Co Ltd. and Outsourcing Inc. signed an MOU for partnership in skills training and human resource development and deployment, manufacturing, and assembly.
Another MOU was signed among Advanced World Systems Inc., Alsons/AWS Information Systems Inc., and Ubicom Holdings Inc. for the outsourcing of projects involving software development, testing, and maintenance.
Asia Defense and Armament Corp., Kenko Tokina Co. Ltd., and Diversified Ecozone Corporation also inked an MOU on the establishment of a manufacturing facility in the Philippines for optics, equipment, injection molded holsters, and related equipment to supply customized equipment for the police, military, and other Philippine government's defense units.
Murata Manufacturing Co. Ltd signed an LOI for the expansion of manufacturing capacity of the Philippine Manufacturing Co. of Murata Inc. to service demands of existing customers, accommodate new customers, and anticipate increase in sales of multilayer ceramic capacitors.
Another LOI was signed by Aeon Fantasy Co. Ltd. to increase investments in the Philippines for indoor theme parks and amusement facilities through the local subsidiary.
Sojits Corporation also signed three LOIs for the expansion of its investments in the distribution of FUSO truck and bus products through the local subsidiary, for investment in bakery company Nippon Premium Bakery Inc. and the upstream business through flour milling and other ancillary services, and for co-development of a general industrial park.
An LOI was signed by JACCS Co. Ltd for investment in the credit and finance business by extending credit facilities to individual and corporate buyers.
Terumo likewise inked an LOI to expand investments in manufacturing, selling, and exporting medical devices and the development of new products and new technologies in sterilization capability and eco- and smart factories.
An LOI was also signed by Ibiden Co. Ltd. for the expansion of existing investments in the manufacture of Flip Chip Ball Grid Aray products, as well as capacity to cater new drivers of growth such as artificial intelligence and establishment of data centers.
Sumitomo Electric Industries Ltd. signed an LOI to build a new facility for wiring harness and related products for export to Japan and North America, while Mitsui & Co. Ltd inked another LOI to develop the Philippine automotive industry through local partner GT Capital Holdings Inc.
Marubeni Corporation signed an LOI for the development of possible new and existing infrastructure projects in energy development, New Clark City, railways, and water services.
An LOI was inked by Furukawa Electric Co. Ltd. to expand the production capacity of the local wholly-owned center for wire harnesses; and by Lawson nc. to expand investments through the opening of additional convenience stores.
Japan Maritime United Corporation and Marubeni Corporation also submitted its LOI to develop the country's maritime safety capability by providing maritime expertise, including but not limited to the service of design and construction of ships.
Canon Inc. also signed an LOI for the expansion of its existing investments in the Philippines for monochrome laser beam printers, including service parts, packaging materials, and optional products.
An LOI to expand current investments in the Philippines as manufacturer of hard disk drives, spindle motors, and related parts was likewise inked by Nidec Corporation.
Mistubishi Motors Corporation signed an LOI for the expansion of current investment to support local production of completed vehicles.
The last LOI was inked by Tokyo Gas, in a bid to create an inter-island liquefied natural gas distribution network to serve new markets for natural gas in the Philippines. (SunStar Philippines)