OSAKA, Japan — The Philippines is asking Japanese investors to look beyond the usual sectors and consider new frontiers—information and communications technology (ICT) and green technologies—as the country works to diversify its growth drivers.
Speaking to GMA Integrated News during the Philippine Economic Briefing (PEB) in Osaka on September 12, Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said the Philippines is determined to build a more resilient and future-ready economy.
“Japanese investors are showing interest in ICT and green energy. Many are already looking to expand, while others are considering entry,” Balisacan said. “There are plenty of opportunities here that are good for them, but also good for us.”
Expanding Growth Beyond Consumption
For decades, domestic consumption and services have powered much of the Philippine economy. But the government is now focused on higher-value sectors such as manufacturing, digital infrastructure, renewable energy, and tourism.
Balisacan stressed that Japanese capital and expertise could play a crucial role in shielding the Philippines from global risks, especially amid ongoing trade disputes and supply chain disruptions.
“With the uncertainty in the global economy—particularly in the U.S. with tariff issues—the Philippines is a strategic partner. Partnerships with Japan and our neighbors will be key drivers of sustained growth,” he explained.
Optimism Fueled by Low Inflation
With inflation at multi-year lows, Balisacan noted rising consumer confidence and more affordable borrowing costs—factors expected to encourage investments and domestic spending.
He also pointed to the Konektadong Pinoy Act, a new law aimed at closing the digital divide between Metro Manila and rural provinces. Expanded connectivity, he said, will attract companies—including Japanese firms—to invest outside the capital and unlock opportunities in Visayas, Mindanao, and Northern Luzon.
Green Growth and Resilience
Balisacan highlighted Japan’s experience in renewable energy and disaster-resilient infrastructure as invaluable to the Philippines, a country highly vulnerable to climate change.
“We can learn a lot from them,” he said. “Japan has built resilience into its economy. Even after disasters, they recover quickly—without long-term harm to their society and industries. That’s the kind of resilience we need.”
Addressing Investor Concerns
Balisacan acknowledged that Japanese investors have raised concerns about permits and regulatory processes. But he assured them that Manila is cutting red tape through a whole-of-government approach to make investing easier.
“We’ve already addressed many of their concerns, including tax refunds and entitlements. If we continue to get our act together—and we should—the Philippines will stand out as a prime investment destination,” he said.
Building a Future-Ready Partnership
As the Philippines accelerates its post-pandemic recovery, Balisacan emphasized that Japanese partnerships will be vital in pushing the country toward innovation-driven, inclusive growth.
“When growth reaches all sectors of the economy and all segments of the population, it creates more opportunities for everyone—including Japanese businesses,” he said.
