Metro Manila (CNN Philippines, February 9) — President Ferdinand Marcos Jr. has secured billions of pesos worth of investment pledges from Japanese firms engaged in semi-conductors, electronics, and wiring harness, the Presidential Communications Office (PCO) said.
In a statement Thursday, the PCO said Marcos will announce on Friday the total amount of investments during the signing of letters of intent by the companies.
Marcos’ economic team said the investments are expected to translate to over 10,000 jobs.
“We want the country to attain the status as a regional hub for printers, wiring harnesses, and other electronic goods,” the president told business executives of Japan’s semi-conductor and electronics industries in a roundtable discussion.
“We consider your operations significant. You are a prime generator of jobs. 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,” Marcos added.
Marcos is in Japan until Feb. 12, his third foreign trip for 2023, with seven bilateral key agreements expected to be signed on top of business deals.
READ: What to expect in Marcos’ Japan visit
Malacañang said top executives of the following firms attended the meeting, looking to expand their operations in the Philippines: 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.
He told them that the country’s base of engineers, strong workforce, entrenched network of Japanese leading 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,” the chief executive said.
During the meeting, Marcos also told Japanese investors his administration’s commitment to intensify efforts for the upskilling and reskilling of Filipino workers, hoping for them to remain competitive.
Aside from that, the PCO said the chief executive promised Japanese corporate leaders he will address issues of value-added tax (VAT) refund, logistics, and manpower requirements, among others.
“And most importantly, we intend to grow the position of the country as an industrial/service hub in the region through the establishment of anchor locators such as yourselves, who we hope will stimulate development to attract tier 1 to tier 3 suppliers,” Marcos was quoted as saying. “This will help us create an efficient and expansive supply chain.”
According to the Malacañang, the Philippine wiring harness exports have been growing on average by 9% every year, over a 20-year period, from 2000 to 2021.
The Philippines was the fourth largest exporter of wiring harness in the world after Mexico, China, and Romania in 2021, it added.
The automotive wiring harness market is expected to surpass $93 billion in 2023, the PCO said, with global demand for greater fuel efficiency and electric vehicles sparking growth in the coming years.
Marcos’ commitments
“We have listened to your concerns and your issues, and we intend to respond to these challenges with a whole-of-government approach,” he added.
