Japanese SMEs now favour Philippines over Thailand

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tokyo manilaThe Tokyo branch of the Metropolitan Bank & Trust Co. (Metrobank) said the political situation in Thailand has prompted some Japanese businesses to transfer their offices in Thailand to the Philippines.

Metrobank Tokyo Manager Takeshi Odaka said there are some serious concerns in Thailand that made some Japanese businessmen relocate their offices or factories from Thailand to the Philippines.

Odaka said one of the reasons was the tight labour market, with an unemployment rate that has long been below 1 per cent in Thailand. He said there were also problems on rising labour costs and unstable manpower, and the difficulty of securing locations in industrial parks with sufficient facilities.

“There’s an insufficient protection against natural disasters. Flooding is a routine in Thailand, and is getting worse in recent years,” he said.

“Besides, fewer reinsurance companies accept coverage against flooding damages,” he said, which means that “your investment will be hardly protected.”

“Yes, you are right; unstable political environments. The Philippines is better positioned relative to the other ASEAN rivals when you see comprehensively in these aspects and so on,” Odaka added.

Some Japanese banks are clearly eager to enter into the booming Philippine market.

“The number of tie-ups between Metrobank and Japanese regional banks is still growing rapidly, currently it counts 60 banks in addition to two government policy banks in Japan, thanks to increasing interest of investment among Japanese,” he added.

Rizal Commercial Banking Corp. (RCBC) President Lorenzo V. Tan said factors like the military rule in Thailand prompted some of the Japanese companies to move their factories to the Philippines.

“We’ve been talking to new Japanese clients moving some of their facilities from Thailand to the Philippines. They are mostly in the manufacturing industry like electronics. Some make parts for airplanes and electronics parts of cars. They are SMEs that supply the big Japanese corporations,” he said in an earlier interview.

Tan added that they made 36 new Japanese clients over an 18-month period, as a result of a combination of partnership with Resona Bank and partnership with Okasan Securities Group Inc.

Those partnerships have produced good results. They have Japanese clients and Japanese funds by Philippine equities through the RCBC Securities Inc.

He added that more Japanese companies will relocate in the Philippines because of combination of Abenomics and good relationship between the Philippine and Japanese governments.

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Reading Time: 2 minutes

The Tokyo branch of the Metropolitan Bank & Trust Co. (Metrobank) said the political situation in Thailand has prompted some Japanese businesses to transfer their offices in Thailand to the Philippines.

Reading Time: 2 minutes

tokyo manilaThe Tokyo branch of the Metropolitan Bank & Trust Co. (Metrobank) said the political situation in Thailand has prompted some Japanese businesses to transfer their offices in Thailand to the Philippines.

Metrobank Tokyo Manager Takeshi Odaka said there are some serious concerns in Thailand that made some Japanese businessmen relocate their offices or factories from Thailand to the Philippines.

Odaka said one of the reasons was the tight labour market, with an unemployment rate that has long been below 1 per cent in Thailand. He said there were also problems on rising labour costs and unstable manpower, and the difficulty of securing locations in industrial parks with sufficient facilities.

“There’s an insufficient protection against natural disasters. Flooding is a routine in Thailand, and is getting worse in recent years,” he said.

“Besides, fewer reinsurance companies accept coverage against flooding damages,” he said, which means that “your investment will be hardly protected.”

“Yes, you are right; unstable political environments. The Philippines is better positioned relative to the other ASEAN rivals when you see comprehensively in these aspects and so on,” Odaka added.

Some Japanese banks are clearly eager to enter into the booming Philippine market.

“The number of tie-ups between Metrobank and Japanese regional banks is still growing rapidly, currently it counts 60 banks in addition to two government policy banks in Japan, thanks to increasing interest of investment among Japanese,” he added.

Rizal Commercial Banking Corp. (RCBC) President Lorenzo V. Tan said factors like the military rule in Thailand prompted some of the Japanese companies to move their factories to the Philippines.

“We’ve been talking to new Japanese clients moving some of their facilities from Thailand to the Philippines. They are mostly in the manufacturing industry like electronics. Some make parts for airplanes and electronics parts of cars. They are SMEs that supply the big Japanese corporations,” he said in an earlier interview.

Tan added that they made 36 new Japanese clients over an 18-month period, as a result of a combination of partnership with Resona Bank and partnership with Okasan Securities Group Inc.

Those partnerships have produced good results. They have Japanese clients and Japanese funds by Philippine equities through the RCBC Securities Inc.

He added that more Japanese companies will relocate in the Philippines because of combination of Abenomics and good relationship between the Philippine and Japanese governments.

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