DTI Targeting Japanese SMEs To Migrate Operations To Philippines

Department of Trade and Industry Secretary Adrian S. Cristobal announced yesterday that several manufacturing companies based in Osaka, Japan have expressed interest in embarking on partnerships and investment projects in the Philippines.

Cristobal recently met with top officials of Kansai Economic Federation (Kankeiren) in Osaka to discuss investment opportunities in the Philippines.

“Our country is well positioned to encourage member companies of Kankeiren to see the Philippines as a hub for their operations,” Cristobal said. “The Japanese SMEs can export from the Philippines to other ASEAN-member countries, as well as to Europe and the United states using trade agreements now in place.”

With the advent of regional integration or the ASEAN Economic Community, the region will see increased free flow of capital and goods among member countries. Likewise, the Philippines is a beneficiary of both the European Union’s Generalized System of Preferences (GSP) Plus and the United States’ GSP which allows for duty free exports.

Cristobal said the DTI has been working with Kankeiren to encourage Japanese small and medium enterprises to migrate operations to the Philippines. “Kankeiren businessmen have expressed interest in waste management projects and in promoting disaster and environment management technologies. They can also invest in setting up SME-centric industrial estates on remaining government owned land.”

Kankeiren is a non-profit organization composed of 1,400 members based in the Kansai area of Japan. Reportedly one of Japan’s largest economic organizations, Kankeiren represents the Kansai business community, educational corporations, and other entities that pursue economic activities in the Kansai region, which covers major cities such as Osaka, Kyoto, Hyogo, Nara, Shiga and Wakayama. It is the home base of some of Japan’s largest industrial corporations such as Panasonic, Corporation, Sharp Corporation, and Mitsubishi Electric Corporation, among others. (The three corporations are active members of Kankeiren.) Total export receipts from Kansai was valued at USD168 billion, cornering 20 percent of Japan’s total export income.