The unprecedented pledges of investments and assistance by Japan and China to the Philippines, worth about $33 billion, reflect the strong confidence of the international community in the administration of President Duterte and his administration’s capability to sustain the country’s high growth path, according to Finance Secretary Carlos D. Dominguez III.
“These pledges from Tokyo [$9 billion] and Beijing [$24 billion] make up the initial investment dividend from the President’s foreign-policy rebalancing toward accelerated integration with our Asean peers and major Asian trading partners China, Japan and South Korea,” Dominguez said.
The finance chief said the funding commitments are the highest so far made by Japan and China for one country, which shows the strong relations that the Philippines has with Japan and China.
“Also, such financial assistance from Beijing and Tokyo at the onset of this administration best illustrates the international community’s deepening confidence in the Duterte presidency that drown out the political chatter emanating from certain quarters,” he added.
Dominguez said Japanese Prime Minister Shinzo Abe’s pledge of a ¥1-trillion investment and development-aid package is the largest that Japan has committed to a single country.
The investment pledge, spread over five years, is equivalent to about $9 billion, or around P424 billion, which was announced by Abe at the start of his state visit to the Philippines.
“For the further development of the Philippines, we will create business opportunities through official development assistance and private-sector investments, which together will be of the order of ¥1 trillion over the next five years,” Abe said in Malacañang on Thursday.
Duterte came home with aid and investment pledges from Beijing worth $24 billion from his four-day state visit to China last October.
Earlier, Trade Secretary Ramon M. Lopez announced China will provide $9 billion in soft loans, including a $3-billion credit line with the Bank of China, while economic deals, including investments, would amount to about $15 billion.
Image credits: Rene Lumawag, Presidential Photographers’ Division via AP