Japan announced that more than 200 of its manufacturing companies operating in China and Japan have expressed interest to relocate their businesses in the Philippines in the next five years starting next year.
According to Japanese Chamber of Commerce and Industry of the Philippines Inc. headed by Nobuo Fujii saying some of the firms had already started moving their operations here last year because the Philippines is a very competitive country.
“There are already 1650 Japanese companies located here. We have many inquiries from Japanese firms and we still receive inquiries up to now, which can increase by 200 up to 300 easily,” he said.
Fujii said that most of the companies relocated here from China were engaged in information technology (IT) while some others in automotive and parts manufacturing like the Japanese bicycle maker Shimano has just opened a P1.2B facility in Batangas.
Japanese watchmaker Citizen also shut down its China factories and decided to move in the Philippines and the Mitsubishi Power Industries is another giant who is scheduled also to move in the Philippines according to the latest news.
Fujii also said that some of the firms expressed interest in locating their operations in the Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) area.
He said, “Philippine investment program and tax incentives are given to foreign investors particularly those offered by PEZA (Philippine Economic Zone Authority) and BOI (Board of Investments),is also the reasons why more of its Japanese companies were establishing their business presence here.”
Fujii added, that China’s rising wages also prompted some firms to move their production here and a competitive advantage of the Philippines, including its well-educated English-speaking workforce and good quality infrastructure, is also the main key.
The three factors that could have triggered this actions are: Island grabbing and illegal reclaiming of territories in the South China Sea, China’s slowing economy and the devaluation of their currency. On the other hand, Philippine economy can maintain its stability that’s why it needs to prepare for the biggest migration.– Jason E.