Japan firms bullish on PH – Security Bank
JAPANESE businesses remain upbeat about the Philippines’ continued economic growth, Security Bank Corp. said on Wednesday.
In a statement, Security Bank President Alfonso Salcedo Jr. said “investors generally see the Philippines’ strong household spending, strong labor force and the so-called demographic sweet spot as drivers for more foreign direct investments.”
The country’s young and growing population is a key factor, according to him.
“Investors are looking for long-term investments that will allow them to capture some of the country’s demographic dividend,” the Security Bank chief said, noting that the gross domestic product (GDP) growth the country posted recently was a boon for Japanese investments in emerging markets.
The economy grew 6.8 percent in the first quarter of 2018, higher than the revised 6.5 percent in the previous quarter and 6.4 percent in the first three months of 2017.
A growing consumer market and Filipinos’ increased purchasing power resulting from the government’s tax reform initiatives are encouraging local businesses to expand their portfolios and offer Japanese branded goods, Salcedo said.
Japanese consumers are impressed with the quality and standard of the country’s agricultural and fishery products, he added.
His statement came as Security Bank and Japan’s MUFG Bank Ltd. (MUFG) expressed optimism that businesses could capitalize on the positive economic outlook through their second Business Matching Fair, held on Wednesday.
The fair aimed to strengthen business ties between Manila and Tokyo, and open more opportunities for Filipino and Japanese businesses.
Makoto Kobayashi, head of MUFG’s Financial Solutions Group, said the fair reaffirmed his bank’s commitment to
Security Bank in contributing to each other’s success and bolstering the Philippine economy.
MUFG’s partnership with Security Bank, which began in April 2016, enhanced its regional network. The partnership is similar to those the Japanese bank forged with Vietnamese, Thai and Indonesian lenders.
“With Japanese business sentiment of the country remaining strong, we will definitely want to continue harnessing the MUFG-SBC partnership to serve as a gateway for Japanese investment into the Philippines and facilitate greater collaboration between companies from both countries,” Kobayashi said.
Security Bank’s shares ended up P0.20 at P203 each on Wednesday.
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