Entry of big Japanese bank to boost foreign investments

The entry of Japan’s biggest financial institution in the local banking system would be a big boost to the Philippine government’s efforts to attract more foreign investors, according to Trade Secretary Adrian S. Cristobal Jr.

In a statement, Cristobal said the investment made by Bank of Tokyo Mitsubishi UFJ, Ltd (BTMU) in Security Bank Corp. came at a time when the government was putting more weight on enhanced cooperation with foreign investors and ensure stability, reliability and predictability in the country’s investment climate.

The completion of this deal was said to have emphasized “how the Philippines is now among Japan’s most favored investment destinations in Southeast Asia,” the trade chief claimed. “Japan’s outlook of the Philippines has been quite favorable more so because the country is showing robust economic growth. Our track record of consistent growth has been catching the attention of Japanese investors and it has become more attractive compared to other economies in the region.”

“The Bank of Tokyo-Mitsubishi’s entry has surely prompted not only other foreign financial institutions but prospective foreign investors in business and industry to take a more serious look at the Philippines and what it has to offer,” he added.

The country’s sustained economic growth and its young, burgeoning population were among the reasons why Japanese companies, including small and medium enterprises (SMEs), are looking at the Philippines as part of their investment strategies in Asia and Oceania.

The business communities of both the Philippines and Japan are enjoying a close relationship with many Japanese companies either relocating or expanding their operations here. Such a relationship was further strengthened by the Emperor of Japan’s five-day visit in the country in January this year.

Some foreign chambers in the Philippines have already acknowledged the Philippines as the next promising investment hub in Asia as investors look beyond China due to rising costs, increased government regulation and flagging economy.