The Philippine Chamber of Commerce and Industry (PCCI) and the Japan Chamber of Commerce and Industry (JCCI) signed on Tuesday, Oct. 24, a memorandum of understanding (MOU) to strengthen economic cooperation between the Philippines and Japan, increasing trade and investments in various areas such as technology and innovation, agriculture, manufacturing, small and medium enterprise (SME) development, among others.

During the PCCI-JCCI Economic Dialogue at the Peninsula Manila in Makati, PCCI President George T. Barcelon said that the partnership is “an opening for us [Filipinos] to look into some of the many sectors that will benefit us.”

Barcelon expressed hope that at the end of the discussion, Japanese firms would expand their collaboration with potential sectors in the Philippines such as agriculture, livestock, innovation, and engineering among others.

“No matter how we look at it, Japan is still at the forefront of technology – and this is where we can take advantage,” he added.

Barcelon also emphasized that more collaboration in the supply of human resources would help the country increase the value chain.

He noted of the  898 Japanese enterprises that invested a total of P740 billion in the Philippines, generating an exported income of $30.3 billion and creating 350,000 jobs for Filipinos – equating to 2.5 million jobs, including the indirect ones.

With these figures, Japan continues to be the top investor in the Philippines.

In his presentation, PCCI Industrial Affairs Vice President Ferdinand A. Ferrer highlighted the potential areas of collaboration between the PCCI and JCCI in terms of human resource starting from the academic level, curating skills certification process, identifying investments, and preparing the current and future workforce.

Ferrer also highlighted that Japan’s technological investment will support the development of agriculture, manufacturing, and micro, small, and medium enterprises (MSMEs) sectors by providing educational training, among others.

He said there is a huge potential for collaboration in strengthening the MSMEs between the two countries.

MSMEs in the Philippines comprise 99.4 percent of businesses and 66 percent of all jobs.

Similarly, MSMEs in Japan compose 99.7 percent of businesses and 69 percent of the private labor force.

Furthermore, PCCI Agriculture Committee Co-chair Salvador Salacup presented the opportunities in Philippine agriculture highlighting the need to improve exports of top products such as fruits, seafood, meat, and beverages, among others.

In 2021, agriculture, forestry, and the fishing industry contributed only 9.6 percent or $394 billion to the country’s gross domestic product (GDP).

Over the past six years, the sector’s contribution has remained below 6 percent which was supposed to reach 30-45 percent.

In 2021, agricultural exports only amounted to 6.8 percent of the 22.5 percent of the total agricultural trade – lower than the agricultural imports of 15.7 percent.

In 2022, the country’s top agricultural export products to Japan include edible fruits, nuts, citrus fruit peel, and melons amounting to $627.88 million.

Meanwhile, the country mainly imports fish, crustaceans, mollusks, and aquatics invertebrates from Japan, valued at $22.62 million.

For his part, Sembikiya Fruit Co. Ltd President Hiroshi Oshima noted in his presentation the Japanese fruit importer requesting the Philippine government to improve its variety of banana and pineapple products due to climate change, as well as the logistic infrastructure to ensure the stability of the supply.

In addition, Barcelon also urged Japanese firms to invest in 3D printing which covers the industrial, machine-making, and medical applications, among others.

He added that Japanese firms are also advanced in hydrogen and fuel cells – for instance, hydrogen-powered and solar energy generators – which contribute to achieving PCCI’s commitment to climate change, as one of the signatories to the Paris Climate Accords.

Through Japanese firms’ investments, Barcelon sees an advantage in having a vast amount of potential solar energy projects to help boost this sector.

The partnership will also include market data and information on the policy, legal, and regulatory environment for doing business in their respective countries.