The Osaka Prefectural Government of Japan will be endorsing the economic zones being managed by the Philippine Economic Zone Authority (Peza) as “suitable locations” for Japanese manufacturing companies seeking to expand overseas.
This was deemed significant as an endorsement from the governor would effectively attract more small- and medium-sized enterprises (SMEs) from Osaka—where a large number of Japanese manufacturing firms are located—to set up shop in the Philippines. This, in turn, will help the Philippines build up its support subsectors that will make local industries more competitive in the region.
According to Peza Director General Lilia G. de Lima, the endorsement formed part of the memorandum of understanding (MOU) she signed last Tuesday with Osaka Prefecture Governor Ichiro Matsui, who came in with 19 SMEs engaged in manufacturing activities in Japan.
“Osaka is very strong in manufacturing and so this MOU is good because it will encourage Japanese SMEs to come here. They can be potential suppliers to the existing Peza locators. Some (of the members of the Osaka business delegation) are into car parts manufacturing, electronics, and plating. We need these manufacturing companies for our support industries,” De Lima explained. “With this MOU, we also expect more investment missions coming from Osaka. Many of these Japanese SMEs don’t have an idea of what we have here and with this agreement, they will be able to realize that there are a lot of opportunities (in the Philippines).”