MANILA, Philippines - Japanese entrepreneurs and companies are taking more interest in the Philippines following the recent series of upgrades in credit rating.
Rizal Commercial Banking Corp. (RCBC) president and chief executive officer Lorenzo V. Tan said that the recent upgrades in the country’s credit rating the latest of which is from a Japanese credit rating agency, revitalizes investor interest in the Philippines, particularly among the Japanese.
“The Philippines is becoming an attractive investment site with improved competitiveness and business climate,†he said, during the annual event marking the business cooperation agreement with Resona Bank, the fourth largest banking group in Japan.
“The country is now one of the new emerging market stars along with Turkey, Indonesia and Mexico.â€
Electronics firm Furukawa Electric Co. Ltd. and adhesives maker Cemedine Co. Ltd. recently made a combined ¥1.016 billion investment in the Philippines.
Furukawa Electric’s subsidiary, Furukawa Automotive Systems Inc. (FAS), has established a wholly owned unit called Furukawa Automotive Systems Lima Philippines Inc. with a capitalization of one billion yen to make wire harnesses for Japan-made automobiles this year.
FAS said in a report that increasing demand for its products made it put up a “first step†export hub in the Philippine for its Asian expansion.
Canon Inc. and Brother Industries Ltd. are expanding their existing facilities, including printers with initial investments of 6 billion yen and ¥4.23 million, respectively.
Bank officials said Japanese companies are looking towards Asia, Latin America and Europe for exports. As Japanese manufacturers locate in the Philippines, their suppliers would follow suit, creating a supply chain that would attract a wider range of manufacturers and suppliers.
Money pumped by foreign investors into the Philippines rose nearly 10 percent in 2012 from the previous year, boosted by higher inflows in December.
Meanwhile, Resona Bank chairman Naoki Iwata said that the availability of human resources and a developing economy are what draws Japanese investors to do business in the Philippines.
He also noted that the alliance with RCBC has been exceeding expectations and benefiting many of their clients who are operating their businesses in the country.
Since forging this strategic alliance in 2012, RCBC experienced an influx of Japanese investors who are doing business with the bank. RCBC has been assisting Resona clients in their investment decisions and providing their business and banking requirements through its Japan helpdesk.
Recently, RCBC and Resona also signed a memorandum of understanding with the Philippine Export Zone Authority (PEZA) to further promote direct investments and help foster business partnerships between Philippine and Japanese entrepreneurs and companies.
Tan added that RCBC continues to improve its banking services to provide innovative solutions for Resona’s clients. With the implementation of its new core banking system, it expanded its product range and enhanced its service delivery channels to facilitate a faster and more efficient banking experience.