More Japanese firms invest
September 18, 2012 at 14:21
MORE JAPANESE firms are entering the country due to the inexpensive labor and high level of joblessness in the country, the Japanese Chamber of Commerce and Industry of the Philippines, Inc. said in an interview with reporters last week.
Many of these Japanese firms are setting up manufacturing facilities, the chamber added.
“China is getting more expensive and Thailand has a low jobless rate. The Philippines on the other hand is still relatively cheaper and there are many people that can be trained,” said Nobuo Fujii, executive director of the Japanese Chamber, in an interview with reporters late Thursday.
Some of the firms entering the country are Fuji Film Manufacturing, wire harness firm Kurogawa Electronics and Semedime, which makes sealing products.
Other firms that have announced intentions to set up facilities in the country are Canon Business Machines (Philippines), which will export printers to South America from the Philippines, toy maker Bandai Namco Philippines and Murata Manufacturing.
Mr. Fujii said many of the firms will be locating in economic zones in Batangas.
Thailand has a 0.73% jobless rate, compared to the 6.9% jobless rate of the Philippines. “Some suppliers for these firms will also locate here so they can set up a supply chain here,” said Mr. Fujii.
The Trade department said the investments are welcome and show the confidence firms have of the country’s business environment.
“It shows that we have the capability to address their needs. We’re welcoming the investments into wire harnesses because that is one of our biggest exports for car parts,” said Trade Undersecretary Cristino L. Panlilio in a telephone interview with BusinessWorld on Friday.
He added the government also invites suppliers of locators to provide a convenient and efficient environment for investors. Meanwhile, Mr. Fujii said the chamber is expecting a schedule for refund of tax credit certifications to its members.
“There are outstanding tax credit certifications which we expect billions from for the period of 2002 to 2003. It has been promised to our members by the Finance department and budget has been allocated. We expect that on Oct. 17,” said Mr. Fujii.
Exporters are allowed refunds for value-added tax paid for parts that entered the country to manufacturing the products to be exported.
Claims of Japanese firms are estimated at about P14 billion as of 2009.
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Source: Emilia Narni J. David, BusinessWorld. (16 September 2012)
