Toshinao Urabe, Japanese ambassador to the Philippines, cited four reasons why Japanese investors are thinking twice before coming into the country.
Urabe said Japanese investors are looking at good governance, well-built infrastructures, the value added tax (VAT) and the rule where foreign equity in business is limited to 40 percent.
“[Good governance, infrastructures] those are the areas we want to see improvement,” Urabe said.
The VAT issue and the 60-40 rule, on the other hand, is still being discussed by the embassy and the government.
“[But] there is still a whole lot of list of companies coming into the Philippines,” Urabe said.
The most recent Japanese company coming in the country is Shimano Inc., a bicycle-manufacturing company, where bicycle assembling facilities are placed here in the Philippines.
Other companies opened in the country within the year include Canon; Murata, which manufactures tiny chips for smartphones; Fujifilm Optical; Bandai; as well as expansion of Yokohama tires and Toshiba.
KRISTYN NIKA M. LAZO