The Philippine Economic Zone Authority (PEZA) recently concluded its mission to Japan in partnership with the Philippines-Japan Economic Cooperation Committee (PHILJEC) last March 3 to 6.

“The Philippines and Japan’s partnership has been built on decades of economic cooperation, cultural exchange, and mutual development. Japan continues to play a crucial role in industrial growth, job creation, and innovation, especially in the country through the ecozones,” noted PEZA Director General Tereso Panga.

The 41st Joint Meeting formally commenced with reports from Japan-Philippines Economic Cooperation Committee (JPECC) chairman Takehiko Kakiuchi and Richard Albert Osmond where they highlighted the 6.1 percent projected growth rate of the country in 2025 and the important participation of Japan and the Philippines in the coming 14th Asian Business Summit this July in Manila.

In his keynote address, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go emphasized the government’s programs that will be integral in attracting more investors into the country. This includes the passage of the CREATE MORE Act, the provision of green lanes for strategic investments, the new public-private partnership code, and the Build, Better, More project of the administration.

Panga discussed Japanese Investments in the Philippines which is anticipated to increase with the enhanced fiscal incentives under the CREATE MORE Act partnered with other favorable conditions that make the Philippines the preferred investment destination in the region.

Panga said, “We are targeting the new investors from Japan to look at the Philippines as their next investment destination. In the same manner, we are enticing current Japanese companies in expanding their solid footprint in the country by bringing in their supply chain. The Philippines is in the sweet spot to host these investments with all the positive advantages we presented.”

Following the joint economic meeting, the Philippine delegation met with the top officers of Keizai Doyukai. The meeting focused on strengthening economic cooperation between the Philippines and Japan, particularly in workforce development and supply chain expansion.

One of the key proposals from the Philippine side was to enhance labor mobility by allowing Filipinos to work in Japan under more flexible arrangements. This aligns with ongoing discussions in the Japanese Legislature, which is currently considering relaxing certain requirements for foreign workers to address labor shortages in critical sectors.

A significant aspect of the discussion was skills-job matching between Japan and the Philippines. Japanese small and medium enterprises (SMEs) have identified agriculture, healthcare, and manufacturing engineering as priority sectors where Filipino workers could help fill labor gaps and contribute to industry growth.

Beyond labor mobility, the Philippines emphasized the need to expand its supply chain, particularly in the manufacturing sector. To achieve this, the country is actively working on developing a "supply chain of people", focusing on long-term sustainable workforce development. This involves fostering industry partnerships to ensure that Filipino workers acquire the necessary technical skills required by Japanese industries, leading to mutual economic benefits for both countries.

Keidanren acknowledged that the international order is currently facing significant disruptions, particularly due to geopolitical challenges that have heightened the need to preserve free trade and a stable international order. Additionally, there was a shared recognition of the importance of addressing global-scale issues such as climate change, which require collaborative international efforts.

A key discussion point was identifying priority subsectors where language may not pose a significant barrier, allowing for smoother economic cooperation and workforce integration. The Philippine delegation proposed an alternative approach to the US, emphasizing that nations committed to free trade should work together to maintain economic stability and growth.

The delegation also highlighted the increasing flow of investments into the country’s renewable energy sector, signaling the Philippines’ commitment to sustainable economic development.

Keidanren underscored the importance of human resource development in the Philippines, particularly in relation to GX (Green Transformation) and PX (People Transformation). These concepts align with Japan’s vision of transitioning toward a more sustainable, decarbonized economy (GX) and fostering a highly skilled, adaptive workforce (PX).

The Philippine side acknowledged the importance of concrete action but also emphasized that laying the groundwork for action through policy and strategic discussions is equally crucial.

Additionally, Keidanren encouraged the Philippines to consider the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a potential avenue for expanding trade and economic cooperation. They noted that several South American countries have recently joined the CPTPP, highlighting its growing relevance in global trade dynamics. This suggestion opens up new opportunities for the Philippines to explore deeper integration into multilateral trade agreements.

Panga expressed, “Our meeting with the Keizai Doyukai and Keidanren is integral in our quest to deepen our understanding of the Japanese companies’ investment trends and the global market for us to effectively promote the Philippines’ advantages and position the country as the smart investment destination in Asia-Pacific.”

The PEZA chief also joined investor-servicing meetings hosted by Go and Trade Secretary Cristina Roque with existing Japanese investors such as Ibiden, Nidec, and Fujifilm to assist their local operations.

The delegation also heard from various Japanese investors about their expansion plans in the country and assured them of the Philippine government's support in facilitating and expediting the necessary permitting processes. For his part, Panga committed to facilitating the registration of their project and assured them of the one-stop shop, non-stop shop approach being employed by PEZA.

The PEZA team met with JERA, Japan’s largest power generation company, for discussions and a plant tour at the Hekinan Thermal Power Station. A key point of discussion was JERA’s ongoing environmental initiatives aimed at reducing carbon emissions while maintaining energy efficiency. Their sustainability measures align with broader global efforts to transition toward cleaner energy sources while maintaining industrial efficiency.

During the meeting, the potential supply of fly ash from Hekinan to the Philippines was explored, particularly through PEZA-registered business enterprises such as Ichijo/HRD Group Singapore.

JERA noted that Hekinan alone could provide a steady and continuous supply of fly ash, which could be beneficial for Philippine industries that use the residue as input to their manufacturing operations.

The plant generates approximately 3,200 tons of fly ash per day and has allocated 400,000 square meters for ash disposal, ensuring stability in its supply chain. The discussion highlighted opportunities for collaboration in utilizing this byproduct to support construction and manufacturing industries in the Philippines.

PEZA met with Kawamura Electric Inc., a Japanese company with over 50 years of experience in manufacturing high-voltage power installations, switchboards, and circuit breakers. The company operates seven factories and sales offices and has expanded its presence in China, Thailand, Vietnam, and Singapore, supplying products to both government and private sector clients. In Japan, it holds the top market share for electrical enclosures used in IT infrastructure and data centers.

PEZA’s meeting with FRP Services & Company Japan opened possible collaborations in establishing a footprint at the TECO Industrial Park ? Special Economic Zone where FRP will cater to the requirements of its big client locator company in the Cavite Economic Zone (CEZ), particularly for fiberglass-reinforced particle boards.

FRP Services is a global manufacturing and trading company specializing in composite materials, including fiberglass-reinforced plastics, carbon fiber, and advanced resins. With operations in multiple countries, the company provides solutions for industries such as automotive, aerospace, construction, and marine. PEZA Corporate Communications Division