PH to Osaka investors: ICT and green tech are next growth frontiers

OSAKA, Japan — The Philippines is broadening its investment pitch to Japanese businesses, urging them to look beyond traditional sectors and consider emerging opportunities in information and communications technology (ICT) and green technologies.

In a one-on-one interview with GMA Integrated News during the Philippine Economic Briefing (PEB) in Osaka on September 12, Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said the country is committed to diversifying its growth drivers to ensure long-term resilience.

“Japanese investors are into lecturing, into ICT, into green energy. Sa [may] mga positive expression intentions to expand their operations and for some to come in. So, I think there's a lot of opportunities that are good for them but of course also good for us,” Balisacan explained.

He noted that while domestic consumption and services continue to dominate the Philippine economy, the government wants to expand high-value sectors such as manufacturing, digital infrastructure, renewable energy, and tourism.

Balisacan emphasized that Japanese capital can play a crucial role in insulating the Philippine economy from global risks, citing ongoing trade tensions and supply chain disruptions.

“Us [Philippines] now is a strategic partner given the uncertainty in the global economy especially with the uncertainty with the US and the tariff issues there. So I think with Japan and other neighboring countries coming to the Philippines it will be a significant driver for the sustained growth of the Philippine economy.” he said.

With inflation at multi-year lows, Balisacan noted improved consumer optimism and lower borrowing costs, both of which are expected to boost domestic demand and encourage more investments.

He also highlighted the Konektadong Pinoy Act, a new initiative to close the digital divide between Metro Manila and rural areas, as a key driver of inclusive growth. Improved connectivity, he said, would encourage companies including Japanese firms to expand outside the capital and tap opportunities across the Visayas, Mindanao, and Northern Luzon.

Recognizing the Philippines’ vulnerability to climate change, Balisacan underscored the importance of Japanese expertise in renewable energy and resilient infrastructure.

“We can learn a lot from them. They've invested and they've evolved their economies in ways that are quite resilient. Even if a disaster hits them, they recover quickly and in a way that doesn't hurt their economies and their societies long term,” he added.

Balisacan admitted that investors have raised concerns on permitting and regulatory processes, but he told them Manila is working on a whole-of-government approach to cut red tape and respond more swiftly to investor needs.

“We have addressed many of their concerns already, like those that have to do with taxes, like their refunds from their entitlement of tax deductions. I think that if we get our acts together, and we should, the Philippine economy would be a prime investment destination for the Japanese investors,” he said.

As the Philippines continues its post-pandemic recovery, Balisacan reiterated that partnerships with Japan will be vital in shifting the economy toward innovation-driven growth.

“When you have a broader section of all sections of the economy and population benefiting from growth, that also offers a lot of opportunities for businesses including the Japanese,” he said. — BM, GMA Integrated News