Another big investment by Japan. P14.5 billion being invested by 3 firms. Thousands of jobs being created in the Philippines.

Japan investing again.gettyimages-oil

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The government of Japan and its private sector has been a very consistent ally of the Philippines in terms of the aid they provided. This has been a regular measure of the humanitarian relief that it provides to the Philippines particularly for poverty alleviation.

Even now, it is providing fresh investments to the tune of P14.5 billion to the Philippines. The Department of Trade and Industry reported these investments by the Japanese. Apart from the monetary and infrastructural benefits, these projects will improve the employment position.

A large number of jobs are likely on account of these investments. In fact, the projection is that it will give rise to thousands of job opportunities for the locals.

These are fresh projects and are in addition to the earlier projects that President Duterte brought on his Japan visit.
The total that president Duterte brought home were investments of $19 billion in loans and pledges.
This time around, it is the contribution to the Philippines by three companies, one of which requested anonymity. This company contributed 50% of the pledged amount but did not want its name revealed till the plan became public.
Ongoing and future plans
Ramon Lopez, the Trade Secretary made this announcement earlier yesterday. He went to Japan this week and met with the trade representatives and his counterpart there.

During these talks, two companies discussed their future expansion plans with him.

These companies are:
1. Ichijo Co. Ltd, While on his tour of Japan, the Trade Secretary met Tsuyoshi Miyachi, President of Ichijo. The latter expressed the desire to expand his operations to Cavite Province in the Philippines. The proposed investment would be about P3 billion according to Miyachi.

This company is into manufacturing of Prefabricated Housing Components which they export for further disposal to Japan. This company is not new to the area since it has 5 factories in that province.

The facilities on a sprawling area exceeding 100 hectares and they employ more than 25000 employees.

For this new venture, Ichijo propose to set up a double-storied complex housing the factory and storage complex. A venture employing more than 600 workers, it will be located in a 10 hectare plot in Cavite.
The Trade Secretary also requested the company to explore whether there was any possibility of local consumption of their manufactured products.

2. Tsuneishi Shipbuilding Co. Ltd. This company alone is investing P5 billion for a ship-recycling project in the Philippines. The project will create at least 6000 jobs.

The company envisages providing ship-grade quality of steel which is the best for manufacturing steel components. Moreover, it will take care of major infrastructure needs apart from catering to the local requirements of quality vessels.

This is likely to augment the logistics and transportation potential of the region, Lopez texted to some reporters. This happens to be the third such project of the Tsuneishi Shipbuilding Co. Ltd. The President had brought the other two last year

The creation of 26,000 jobs resulted directly and indirectly from the previous two projects of the company. The investments totaled P10.2 billion as per the Secretary Trade.

Moreover, the company set aside P5.2 billion for setting up its reuse center for ships and skid barges. This facility is coming up in Negros Occidental with a potential to create 6000 more jobs.

The company will build biomass plantations in Mindanao and Negros with the remaining P5 billion. The pelletized biomass products will be prepared in another new factory for shipping to Japan apart from local consumption.

This will also create about 20, 000 additional jobs for the locals directly or indirectly. In view of the massive benefits, the government will give its full cooperation to the companies in the Philippines.

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Umrao Singh
Written for: Lars-Magnus Carlsson
Friday, 03 March 2017