PEZA, SMBC, and RCBC collaborate to draw in Japanese capital.

 PEZA, SMBC, and RCBC collaborate to draw in Japanese capital.

To draw in more Japanese investment, the Philippine Economic Zone Authority (PEZA) has teamed up with Sumitomo Mitsui Banking Corp. (SMBC) and Rizal Commercial Banking Corp. (RCBC).

With SMBC and RCBC, PEZA established a memorandum of understanding (MOU) designating them as partners in the agency's investment promotion efforts.

According to PEZA director-general Tereso Panga, "the goal of this MOU is to promote economic development—constantly positioning the nation as an appealing investment destination characterized by agility and responsiveness to the needs and demands of our dynamic investors."

Our distinguished Investment Promotion Partners (IPPs) will work together to actively promote and grow investments, particularly those from Japanese businesses, he continued.

Having registered 807 commercial enterprises (RBEs) under the PEZA, Japan continues to be the leading country in terms of ecozone investment.

As of October 2023, P797.84 billion in investments, $13.45 billion in exports, and the creation of 336,442 direct jobs were the outcomes, according to PEZA.

According to Panga, between July 2022 and December 2023, the PEZA approved nine large-scale projects totaling P60.41 billion from Japanese investors.

Due to SMBC's well-known worldwide reach, PEZA may be able to reach a wider range of foreign investors through this relationship, which could lead to an increase in FDI and reinvestments in the economic zones. However, Panga said that the partnership with RCBC might simplify procedures inside the economic zones, increasing their effectiveness and drawing in new investors.

"PEZA gains leverage for the benefit of our locators and stakeholders, especially in starting up their business operations in the Philippines, given the financial expertise of SMBC and RCBC," he continued.

The managing executive officer of SMBC and co-head of the APAC Division, Yuichi Nishimura, expressed hope for the expansion of the Philippine economy.

"I have no doubt that the Philippine economy will keep expanding at a remarkable rate and shift toward a more robust and sustainable economic model," Nishimura stated.

The tight relationship between the Philippines and Japan is unaffected by the shifting global landscape, despite increased geopolitical danger and uncertainty. He continued, We are still fully committed to collaborating with our Philippine colleagues to achieve a more prosperous future for both of our nations.

Eugene Acevedo, president and CEO of RCBC, stated, "The success of this collaboration depends on our role as a bridge between the Philippines and the Japanese market." We are building an ecosystem with PEZA and SMBC that will enable smooth interactions between Japanese investors and the exciting potential the Philippines has to offer.

As PEZA continues to be aggressive in its investment promotion activities in the East Asian market, Panga previously stated that they were looking to boost investments from Japanese investors to as much as P80 billion this year from P52.2 billion.

When questioned about the Department of Justice's recent opinion on the subject of work-from-home (WFH), Panga restated the agency's stance in support of permitting flexible or hybrid work schedules.

PEZA maintains its stance that it will only permit flexible or hybrid work arrangements to preserve our esteemed ecozone locators and support the President's demand for special treatment for all present and prospective investors. According to Panga, this is the proper course of action to stay up with progressive economies that have long since accepted WFH as the new workplace reality following the pandemic.