MANILA - The Philippine Economic Zone Authority (PEZA) on Tuesday signed a tripartite Memorandum of Understanding with Japanese financial giant Sumitomo Mitsui Banking Corporation (SMBC) and Rizal Commercial Banking Corporation (RCBC).

PEZA said the move is meant to attract more outside capital into the Philippines as the country plays catch-up with ASEAN neighbors in foreign direct investment inflows.

PEZA Director General Tereso Panga said that under the MOU, both banks would serve as PEZA’s bridges to a broader network of international investors, particularly in Japan.

“From experience kasi, in our dealings even with regional banks, they’re the ones bringing in the investors. Even small banks, like we were one time in Osaka so we were surprised that they are bringing in a lot of SMEs (Small, Medium Enterprises). They may be SMEs in Japan but they’re actually large corporations the moment they are registered in the Philippines,” said Panga.

One upcoming project under the MOU is an investor seminar in Japan in March which will be attended by SMBC’s clients.

“Obviously, we’re looking at Japan being our number 1 source of investments, even exports for the longest time, even jobs so we will continue to do that. In fact, we will be more aggressive,” added Panga.

Despite other Asian countries also vying for more foreign investments, SMBC Managing Executive Officer and Co-Head of APAC Division Yuichi Nishimura said he believes the Philippines’ competitive edge lies in its people.

“I could say that the Philippines is taking a good position. The population, the younger generation, of course apart from being English speakers, those are the competitive edges of the Philippines,” he said.

PEZA expects the export manufacturing sector to benefit greatly from the additional foreign investments that will come in, as well as the electric vehicle industry.

Panga also noted that ecozones are open to local vehicle manufacturers such as those looking to participate in the government’s Jeepney Modernization Program.

"These types of activities like EVs, they’re really essentially catering to the domestic market. I’m sure many local companies will be integrated into the ecozone value chain, particularly in EV manufacturing. If they locate in a PEZA zone, they will enjoy fiscal incentives. But more importantly, the non-fiscal incentives, particularly ease of doing business,” he said.

Iconic Filipino jeepney maker, Francisco Motors, is in the process of setting up shop in an ecozone in Camarines Norte to produce affordable e-jeepneys.

• Local manufacturer offers e-jeepney for less than P1-M

Meanwhile, Panga said the collaboration with RCBC could also streamline processes within economic zones, making it easier for locators to start their business operations in the Philippines.

RCBC President and CEO Eugene Acevedo also committed to providing better financial services to ecozone employees.

"I think what is more important is that, together, we are able to provide more services to their employees, that are not always readily available. Simple things like salary advances, remittances, making it easy for them to send money to their families,” he said.