To further attract more foreign investments from Japan, the Philippine Economic Zone Authority on Tuesday sealed a memorandum of understanding with the Yuchengco Group of Companies’ banking arm Rizal Commercial Banking Corporation, and Japan’s Sumitomo Mitsui Banking Corporation.

The partnership, said PEZA director general Tereso Panga, is a continuing effort to partner with industries, including banking entities, with the latter forming the part of PEZA’s support group in attracting investments, promoting exports, and generating employment, as well as establishing the Philippines as an emerging economic powerhouse.

“As we embark on this new year, PEZA is poised to create a powerful synergy together with SMBC, a globally renowned Japanese financial institution, and RCBC, a leading bank in the Philippines, that will significantly contribute to the economic landscape of the Philippines. This MoU is targeted to spur economic development — continuously positioning the country as an attractive investment destination characterized by agility and responsiveness to the needs and demands of our dynamic investors. The concerted efforts of our esteemed Investment Promotion Partners will actively encourage and increase investments, especially those from Japanese companies,” Panga said.

Primary ecozone investor

The PEZA chief said that Japan remains a primary ecozone investor, boasting 807 PEZA-registered business enterprises, which resulted in a substantial accumulation of investments, totaling P797.84 billion, $13.45 billion in exports, and the creation of 336,442 direct jobs as of October 2023.

“We also recognized the nine big ticket approved investment projects from our Japanese investors, amounting to P60.41 billion from July 2022 to December 2023,” he added.

With its acclaimed global presence, Panga said the partnership with SMBC could help PEZA tap into a broader network of international investors, potentially attracting more foreign direct investments and reinvestments into the economic zones.

“The collaboration with RCBC could streamline processes within the economic zones, making it more efficient and attractive for potential investors. Given the financial expertise of SMBC and RCBC, PEZA gains leverage for the benefit of our locators and stakeholders, especially in starting up their business operations in the Philippines,” he said.

For his part, Yuichi Nishimura, managing executive officer and head of SMBC’s Asia Pacific Division, extolled the government and hailed PEZA for continuously having a strong, long-standing relationship with Japan.

Dynamic economic partnership

“Our two countries enjoy a dynamic economic partnership which has steadily grown over the years based on the principles of mutual benefit and respect. No one doubts that the Philippines has great growth potential,” Nishimura said.

“Under President Marcos’ leadership, the Philippines is expected to become a major growth driver of Asia’s economy in the upcoming years. I’m sure that the Philippine economy will continue to grow at an impressive rate, and it will move towards a more resilient and sustainable model of the economy,” he stressed.

Meanwhile, RCBC’s president and CEO Eugene Acevedo said, “Our role as a bridge between the Japanese market and the Philippines is integral to the success of this collaboration. Together with PEZA and SMBC, we are creating an ecosystem that will facilitate seamless connections between Japanese investors and the vibrant opportunities that the Philippines has to offer.”