Reliable Japan

First, let me say that we laud President Marcos for being pro-active in pursuing stronger defense and security ties with countries on the right side of democracy. Doing so is imperative for our survival, given China’s escalating aggression in the West Philippine Sea.

BBM’s recent official visit to Japan was a multi-faceted success. Japan has always been a reliable partner to the Philippines. I say “reliable” because, in stark contrast to China, Japan has never failed to make good of its commitments, whether in economic matters or in defense. This is not true for the Chinese. Still stinging in our memories was Xi Jinping’s “promise” not to militarize the West Philippine Sea back in 2012.

Japan has been consistent in her support for the Philippines. From 2016 to 2022, she invested $3.36 billion in the country. Some 964 Japanese companies operate in the Philippines today, providing jobs for 350,000 Filipinos. Japan’s investments have been skewed towards precision manufacturing, IT and logistics, all of which bode well for Philippine exports and industrialization. Bilateral trade between both countries amounted to $23.47 billion, for which Japan has a slight surplus.

In terms of official development assistance (ODA), Japan has granted us some $35.5 billion worth of concessional loans since 1966. These loans are very “soft,” carrying a 0.1 percent interest rate, with a 40-year term and 10-year grace period. Japanese ODAs are evident in our railways, airports, seaports, roads, disaster mitigation infrastructure, agriculture and health care.

As a testament to our growing people-to-people and cultural exchanges, 127,000 Filipinos vacationed in Japan last year, overtaking perennial leader Hong Kong. Some 99,600 Japanese visited the Philippines. Meanwhile, more than 300,000 Filipinos call Japan home. Interestingly, there are presently 463 Japanese restaurants operating in the Philippines, three times more than there were in 2012.

Over lunch with Japan’s Minister for Economic Affairs Niheu Daisuke, I was told that the Japanese people still feel remorse over their war-related atrocities towards Filipinos. While we cannot deny history and can only learn from them, Japan has emerged to be a dependable friend since those dark days of the 1940’s. The turning point came when former Japanese Prime Minister Fukuda Takeo delivered his famous “Fukuda Doctrine” speech in Manila in 1977. The speech addressed Japan’s brutal occupation of Southeast Asia during World War II. The speech helped end the dark chapter of Japan’s relations with the region.

We have since moved forward as friends, so much so that in a Pulse Asia survey conducted in 2022, Filipinos considered Japan as its third most trusted country, following the US and Australia.

Daisuke-san admits that the Philippines is Japan’s preferred country to invest in and trade with. This is because of both proximity and strong people-to-people ties. Unfortunately, however, the Philippine government’s bureaucratic inefficiencies get in the way – specifically legal uncertainty, disrespect for the sanctity of contracts and the difficulty to refund VAT credits. This is why the bulk of Japanese investments in ASEAN have gone to Thailand.

In term of values, Japan and the Philippines are of like-minds. Both believe in maintaining peace and an open Indo-Pacific region, rules-based engagement among nations and free trade. In fact, Japan was the first country to sign a free trade agreement with the Philippines back in 2008.

In 2011, both countries signed a strategic defense partnership. In 2016, a new defense agreement was signed allowing the transfer of defense equipment and technology from Japan to the Philippines. Since then, Japan has helped modernize the Philippine Coast Guard by providing a fleet of 97- and 44-meter Multi-Role Response Vessels. All these are coherent with Japan’s new National Security Strategy (NSS), whose objective is to capacitate like-minded countries.

Last year, Japan and the Philippines launched the “two-plus-two dialogue” between our foreign and defense ministers to facilitate policy coordination. Japan also transferred an air surveillance radar system to Manila.

The Philippines played host to Japanese, American and South Korean troops for joint exercises with the Philippine Air Force. And to facilitate more cooperation among our defense troops, an agreement was signed to streamline bureaucratic procedures for future cross-country training exercises.

The visit

President Marcos’ visit to Japan has taken the relationship of both countries to a higher plane, specifically in the realm of security. While in Tokyo, BBM met with Japanese Prime Minister Kishida Fumio and had an audience with Emperor Naruhito.

A visiting forces agreement between both countries was proposed, to which BBM said, “If this will be of help to the Philippines in terms of protecting, for example, our fishermen, protecting our maritime territory... I don’t see why we should not adopt it (VFA).”

The proposed VFA is still being studied so as not to aggravate Beijing. But as I mentioned in previous columns, Beijing is already aggravated and is becoming increasingly aggressive. Tensions are already heightened and the Philippines will do well to prepare for the eventuality of armed conflict. That said, I see a VFA with Japan as both necessary and advantageous.

Japan hopes to make the Philippines the recipient of its first security cooperation grant, another program designed to fulfill the NSS mandate to help build capacity among regional partners. Details are still being worked out.

The official visit bought forth benefits in business and trade, too. Thirty-five deals were signed, amounting to $13 billion. In addition, Japan committed 600 billion yen ($4.5 billion) in ODAs for 2022-2023, to be utilized for the Metro Manila Subway, North-South Commuter railway, among others.

After meeting Prime Minister Kishida, BBM declared that “our strategic partnership is stronger than ever as we navigate together the rough waters buffeting our region.”

Indeed our partnership is stronger than ever and the Philippines is better off having a reliable friend by its side.

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Email: [email protected]. Follow him on Twitter @aj_masigan