Marcos: Pinoys to reap benefits of Japan deals very soon

TOKYO – Filipinos will reap the benefits of the agreements forged between the Philippines and Japan “very soon,” as the relationship between the two countries has grown deeper over time, President Marcos said yesterday.

A total of 35 investment deals were signed between the Philippines and Japan, its long-time ally, during Marcos’ five-day official visit here.

“It has been a productive visit and also, one of the highlights of course was my and the First Lady’s audience with Their Majesties, the Emperor and Empress, and it was a very great honor for us to be able to meet him and to again reestablish that connection between the Philippines and Japan,” the President said in a video message posted on his Instagram account.

Marcos’ visit will culminate today with a meeting with the Filipino community in Tokyo.

He is expected to arrive at the Villamor Airbase in Pasay City tonight and deliver a statement on the highlights of his Japan visit.

The President said he was honored to meet Emperor Naruhito and Empress Masako of Japan during his “very productive” working visit.

He said his visit to Tokyo sets down the blueprint for the relations between the two counties as they slowly emerge from the pandemic economy.

“And I think that we will be able to feel the effects of these discussions, of these agreements, very, very soon, very rapidly back home in the Philippines,” the President said.

Marcos also said the ties between the Philippines and Japan “have grown and have become deeper” since the two countries’ diplomatic relations were established in 1956.

“Those relations have grown and have become deeper as time has gone on and we owe Japan a debt of gratitude for the support that they have given us in those years, even in the ‘60s, in the ‘70s and all the way up to now, where they have supported our infrastructure development,” he said.

The Chief Executive cited Japan’s continued assistance to the Philippines’ agriculture sector and as well as to the administration’s ongoing digitalization program.

Japan is Marcos’ ninth official foreign trip since assuming the presidency in June last year.

On Friday, Marcos urged Japanese companies to invest more in the Philippines, citing the country’s strong macro-economy, liberal business policies, massive infrastructure agenda and its young workforce.

“With the efforts we have made towards maintaining a sound macroeconomic profile, providing business-enabling policies and investing in big-ticket infrastructure projects, I hope we are sending the clear message that the Philippines is open for business and that the Philippines means business,” Marcos said in his speech at the Philippine Business Opportunities Forum.

“When you think growth, think Philippines so that together, we will reap the benefits of robust, sustainable and inclusive growth for our businesses and for our peoples,” he said.

Among those who attended the forum were Minister Yasutoshi Nishimura of the Japan’s Ministry of Economy Trade and Industry; Nobuhiko Sasaki, chairman and chief executive officer of the Japan External Trade Organization; Teruo Asada, co-chairman of the Japan-Philippines Economic Cooperation Committee; Kunihiko Hirabayashi, chairman of the Philippine Society of Japan Inc. and Makoto Katsura, president of the Philippine Society of Japan Inc.

‘Remarkable’ recovery

The President likewise cited the Philippines’ “remarkable” recovery from the economic slump brought by the pandemic, citing its gross domestic product growth from 5.7 percent in 2021 to 7.6 percent last year.

“This growth – which exceeded expectations and our targets – was broad-based, reflecting high government spending and robust domestic demand driven by household consumption and private investments,” Marcos said.

The country’s inflation rate has remained “manageable,” Marcos said, citing the Dec. 15 forecast of the Bangko Sentral ng Pilipinas that 4.5 percent inflation rate this year would further go down to 2.8 percent next year.

Aided by industrialization and job-creation strategy, Marcos said the Philippine economy is likely to graduate from lower-middle-income to upper-middle-income status by 2024, “if not sooner.”

“This will keep us on track in achieving high-income status by 2040,” the President added.

The President likewise said poverty incidence in the Philippines is expected to shrink by half or from 18.1 percent in 2021 to nine percent by 2028.

Marcos also told Japanese businessmen about his signing last month of the Philippine Development Plan 2023-2028, the country’s strategy for growth and development in the next six years.

The Chief Executive also touted the Philippines’ young, educated, hardworking, English-speaking workforce.

“This complements Japan’s development strategy, given its older demographic, of tapping human resources from outside its borders to meet the labor requirements of its enterprises,” Marcos said.

With regard to the country’s budget deficit, the Chief Executive said it is now down to 6.5 percent in the first 11 months of the previous year from the pandemic-driven 8.6 percent in 2021.

“Under our medium-term fiscal program, we target to reduce the budget deficit to three percent by the end of my term in 2028,” he said.

‘Tsunami’

Speaker Martin Romualdez, meanwhile, said he is expecting a “tsunami” of Japanese investments following Marcos’ visit.

According to Romualdez, who joined the Marcos delegation, Japanese businessmen have expressed “overwhelming interest in our country’s economic potential,” spurred by the President’s trip.

“I think he’s thrilled. In fact I think he’s overwhelmed because there’s just this – I don’t know what’s the word – like there’s a tsunami of interest; not just interest but commitments, not just from existing Japanese investors and businesses but even new ones,” he said in a statement.

He said one Japanese firm in partnership with the Aboitiz Group is also keen on investing an estimated $1.5 billion in the country’s energy sector.

“So that’s just like one company. Can you imagine how many companies we engaged? We engaged literally hundreds,” Romualdez said.