Japanese firms pledge billion-peso investments in Philippines

TOKYO, Japan — Malacañang said that several Japanese semiconductor firms have pledged to invest in the Philippines, which could help the administration’s push for more jobs for Filipinos.

Communications Secretary Cheloy Garafil said this after President Ferdinand “Bongbong” Marcos Jr. met with Japanese companies engaged in semiconductors, electronics, and wiring harnesses on Thursday.

In a statement, the Palace official said that these investments could generate over 10,000 jobs. Marcos would announce the total amount of investment commitment during the signing of the letters of intent on Friday.

In his speech, President Marcos said the country considers the operations of semiconductor companies significant.

“You are a prime generator of jobs,” he said.

“You provide support for sectors critical to industrial development, and you carry with you the promise to create value through innovation in global manufacturing around the world,” he added.

According to the President, the country’s base of engineers, robust workforce, an entrenched network of leading Japanese companies, and demonstrated history of success in the information technology services sectors “offers promise for future expansion.”

“With the automotive industry moving toward electric vehicles and autonomous driving and the printer industry facing challenges related to digitalization and automation, we hope to see you recruit our talented human resources in your R&D (research and development) activities,” Marcos said.

Among those present in the meeting were top executives of Japan Aviation Electronics Industry, Ltd.; Yazaki Corporation; Yokowo Manufacturing of the Philippines; Sumitomo Electric Industries, Ltd.; Brother Industries, Ltd.; IBIDEN Co., Ltd.; Seiko Epson Corporation; NIDEC-SHIMPO Corporation; and TDK Corporation.

In 2021, the Philippines was the world’s fourth-largest exporter of wiring harnesses after Mexico, China, and Romania.

The Philippines is also one of the world’s lowest-cost producers of wiring harnesses based on exported value and quantity.

This trend has been building over a 20-year period where wiring harness exports from 2001 to 2021 grew at a steady pace of nine percent per year.