The Department of Trade and Industry is inviting Japanese companies to invest in the Philippine industry
Despite the epidemic, Ramon Lopez, Secretary of the Department of Trade and Industry (DTI), has encouraged Japanese companies to invest in the Philippines since manufacturing, construction, and energy possibilities remain plentiful.
Lopez said Japanese investors may look into possibilities in the manufacture of semiconductors and electronic products, as well as the manufacturing of medical equipment, at a virtual Philippine economic briefing for Japanese businesses on Tuesday.
He said, “(M)edical devices manufacturing is also a developing sector, supported by the existence of supply chains for manufacturing such as tool and die, chemicals, semiconductors, plastics, and metal components required in the manufacture of medical devices and their parts.”
According to Lopez, demand for medical equipment is anticipated to rise as the government works to expand its healthcare facilities.
“By the end of 2024, the local medical device industry is expected to have grown at an annual pace of 8.8%, reaching USD884.3 million,” he added.
The government’s “Build, Build, Build” infrastructure program, housing backlog, office space requirement, transportation sector demand, supply chain industry demand, power demand, and demand for more healthcare facilities, according to the DTI chief, give Japanese firms a big market to tap in the domestic construction sector.
The government has 119 infrastructure flagship projects under the “Build, Build, Build” initiative.
The residential sector was also urged to look into possibilities, as the housing backlog is projected to reach 12.4 million units by 2030, while the business market would need approximately 370,000 square meters of office space between 2021 and 2025.
Lopez went on to say that there is a rising demand in the transportation industry, with transportation infrastructure projects totaling USD100 billion over the next decade.
Power consumption is anticipated to rise in tandem with the economy’s expansion.
In contrast, the local supply chain sector will need PHP14.07 billion in investment over the next ten years, mostly for warehouses, cold storage facilities, container yards, and integrated logistics depots.
With the current coronavirus disease 2019 (Covid-19) epidemic, Lopez believes that additional healthcare facilities are needed throughout the nation.
“The Philippine health system is overburdened as the number of verified and suspected cases rises. According to the senior trade official, the current hospital bed-to-population ratio is 1:984.
Japan was the leading source of investment commitments in investment promotion agencies in the first quarter of this year, with USD215.36 million.