Toshinao Urabe, Japanese ambassador to the Philippines, cited four reasons as to why Japanese investors are thinking twice before putting up manufacturing operations in the country.
Urabe pointed out that Japanese investors are concerned on the following issues: good governance; well-built infrastructure; the value-added tax (VAT) and the 60-40 rule where foreign investor ownership to business are only limited to 40 percent.
“[Good governance, infrastructures] those are the areas we want to see improvement,” he said.
“[But] there is still a whole lot of list of [concerns for]companies coming into the Philippines,” Urabe added.
The most recent Japanese company coming in the country is Shimano Inc., a bicycle-manufacturing company, that is establishing assembling facilities.
The other companies from Japan that opened facilities include Canon, Murata for the manufacture of tiny chips for smartphones, Fujifilm Optical and Bandai. Yokohama tires and Toshiba are also expanding operations in the Philippines.
Kristyn Nika M. Lazo