In photo: Department of Trade and Industry (DTI) Secretary Fred Pascual and other Cabinet secretaries during their meeting with Murata Manufacturing Co., Ltd. executives

Tokyo, Japan—“The Philippines is rapidly becoming a hub for high-value electronics manufacturing, with the semiconductor sector offering lucrative investment prospects,” said Department of Trade and Industry (DTI) Secretary Fred Pascual.

Secretary Fred Pascual, alongside other Cabinet secretaries, made this statement during a meeting with Murata Manufacturing Co., Ltd. Executive Vice President Masanori Minamide on June 19.

“The Philippines welcomes Japanese investment and is committed to creating a dynamic manufacturing sector. This will provide excellent opportunities for companies like Murata Manufacturing Co., Ltd. to expand their operations, while also fostering economic growth and job creation in the Philippines,” he added.

The Philippine government is actively seeking ways to enhance the country’s business environment. Addressing concerns raised by Registered Business Enterprises (RBEs) regarding value-added tax (VAT) incentives, the government has taken proactive measures. This includes BIR issuances and amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act’s implementing rules and regulations. Additionally, the CREATE MORE bill, currently under consideration, aims to streamline the VAT regime.

The government clarifies that, under current regulations, tax and duty-free incentives apply to the importation of chemicals used in production by export-oriented RBEs. Any discrepancies may be due to interpretations that deviate from the CREATE law and PEZA policies.

L to R: (front) Department of Energy Secretary Felix Fuentebella, Embassy of the Philippines in Tokyo Ambassador Mylene Garcia-Albano, National Economic Development Authority Secretary Arsenio Balisacan, Department of Trade and Industry Secretary Fred Pascual, Office of the Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, Department of Finance Secretary Ralph Recto, Department of Transportation Secretary Jaime Bautista, Department of Budget and Management Secretary Amenah Pangandaman, Bases Conversion and Development Authority President and Chief Executive Officer Joshua Bingcang, Bangko Sentral ng Pilipinas Deputy Governor Francisco Dakila Jr.;
(back) Murata Manufacturing Co., Ltd. Corporate Management Group Executive Vice President (Board Member) Mr. Masanori Minamide and Philippine Manufacturing Co. of Murata, Inc. Treasurer Yuta Moriyama

Established in 2011, Murata has grown significantly in the Philippines fueled by the rising demand for multilayer ceramic capacitors, a critical component in electronics, particularly in sectors like electric vehicles and the Internet of Things. Building on their existing commitment, Murata is expanding its production capabilities in the Philippines.

To support this expansion the Philippines offers a distinct advantage with its young, well-educated workforce, many in fields relevant to foreign investors. This talent pool is cost-competitive and proficient in English, facilitating seamless integration with global operations.

“The Philippines is an ideal destination for Japanese investors in the electronics industry, with its highly skilled workforce, competitive labor costs, and strategic location in Asia. The country is also positioning itself as a leader in renewable energy and green metals. With rich reserves of nickel, copper, and cobalt, the Philippines invites partnerships for advancements in these sectors and modernization of logistics infrastructure,” said Secretary Pascual. ♦

Date of release: 20 June 2024