Why do Japanese businesses love the Philippines?

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Investing In-The-PhilippinesElectricity costs are unreasonably high. Infrastructure is apocalyptical. Severe weather seasons and the country’s archipelagic nature make successfully navigating supply chains a case study in modern-day Odyssean voyages.

So why has Japan, the largest investor in local semiconductors, not only fallen in love with the Philippines’ evidently immature manufacturing sector, but now feels compelled to ramp up investment?

Beyond rising costs in China, there seems to be a more heart-felt answer.

“The Philippines is a good destination for the manufacturing industry,” Nobuo Fujii, executive director of the Japanese Chamber of Commerce and Industry of Philippines, said on June 25.

“[Filipino] workers have a generally good working behaviour and they speak English well,” he pointed out.

For Japanese investors, now hinted at moving in more investment into Philippine semiconductors, the manufacturing sector’s largest employer, it is the soft skills of the Filipino worker, the same that have made the country’s BPO industry a world success, which make the once-shunned nation so attractive. (Read more about this “new economy” theory)

“We have a good set of HR services already for the business process outsourcing industry. And besides HR, there are other complex skills we also display: Software development represents 30 per cent of employment in the BPO sector,” Secretary-General Crisanto Frianeza of the Philippine Chamber of Commerce and Industry recently told Inside Investor.

Canon, Bandai, and Fujifilm have been expanding their operations in the Philippines, according to Japanese Ambassador to the Philippines Toshinao Urabe, who added that bicycle maker Shimano is expected to open up a factory in Batangas.

This budding relationship could be fate, as both economies seem to complement one another.

Japan’s aging workforce, a major economic challenge for the developed nation, offers the Philippines an opportunity where its large and growing pool of labour can benefit, Urabe observed. Likewise, that same aging Japanese population is increasingly in need of healthcare services, which the Philippines can amply provide.

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Reading Time: 2 minutes

Electricity costs are unreasonably high. Infrastructure is apocalyptical. Severe weather seasons and the country’s archipelagic nature make successfully navigating supply chains a case study in modern-day Odyssean voyages.

Reading Time: 2 minutes

Investing In-The-PhilippinesElectricity costs are unreasonably high. Infrastructure is apocalyptical. Severe weather seasons and the country’s archipelagic nature make successfully navigating supply chains a case study in modern-day Odyssean voyages.

So why has Japan, the largest investor in local semiconductors, not only fallen in love with the Philippines’ evidently immature manufacturing sector, but now feels compelled to ramp up investment?

Beyond rising costs in China, there seems to be a more heart-felt answer.

“The Philippines is a good destination for the manufacturing industry,” Nobuo Fujii, executive director of the Japanese Chamber of Commerce and Industry of Philippines, said on June 25.

“[Filipino] workers have a generally good working behaviour and they speak English well,” he pointed out.

For Japanese investors, now hinted at moving in more investment into Philippine semiconductors, the manufacturing sector’s largest employer, it is the soft skills of the Filipino worker, the same that have made the country’s BPO industry a world success, which make the once-shunned nation so attractive. (Read more about this “new economy” theory)

“We have a good set of HR services already for the business process outsourcing industry. And besides HR, there are other complex skills we also display: Software development represents 30 per cent of employment in the BPO sector,” Secretary-General Crisanto Frianeza of the Philippine Chamber of Commerce and Industry recently told Inside Investor.

Canon, Bandai, and Fujifilm have been expanding their operations in the Philippines, according to Japanese Ambassador to the Philippines Toshinao Urabe, who added that bicycle maker Shimano is expected to open up a factory in Batangas.

This budding relationship could be fate, as both economies seem to complement one another.

Japan’s aging workforce, a major economic challenge for the developed nation, offers the Philippines an opportunity where its large and growing pool of labour can benefit, Urabe observed. Likewise, that same aging Japanese population is increasingly in need of healthcare services, which the Philippines can amply provide.

What’s not to love?

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