Five Top Japanese Firms Plan New Investments in the Philippines

A number of Japanese companies such as Japan Institute of Design and Promotion, electronics manufacturer MinebeaMitsumi, merchandising firm Aeon Co. Ltd., and trading and investment giants Itochu Corp. and Marubeni Corp., are exploring new investment opportunities in the Philippines.

According to the trade chief, representatives from these firms have expressed plans for expansion in the near future, driven partly by their growing sales in the market. This optimism is further bolstered by the impending passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill.

The CREATE Bill, officially titled "Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy", includes a key provision to reduce corporate income tax rates from 25 percent to 20 percent for both domestic and foreign companies. This reform has encouraged many investors, including these Japanese firms, to consider expanding their footprint in the Philippines.

As of 2023, Japanese companies account for 28 percent of total approved investments in the country. Their contributions include over ₱500 billion in investments, $16 billion worth of export products, and the creation of 300,000 direct jobs.

With the CREATE Bill awaiting President Ferdinand Marcos Jr.’s signature to become law, the Philippines stands to gain even more significant economic benefits from these expansions and investments.