DIVERSIFIED Japanese firm Hitachi Ltd. said on Monday it is optimistic about the Philippine market’s playing a pivotal role in achieving its global growth targets by next year.
The company also expects to contribute to the continuous development of the country by participating in public-private partnership (PPP) projects of the Duterte administration in the pipeline.
“Since 2000, Hitachi was not as active as before [here business-wise],” Hitachi Asia Ltd.-Philippine Branch General Manager (GM) Mitsuhiko Shimizu told reporters during the press briefing coinciding with the second Hitachi Social Innovation Forum at the Makati Shangri-La Hotel.
“But almost five years ago, Hitachi’s top management strategically decided to focus on this market again. So, from now on, we will be contributing more for Philippine society in advancing technologies, especially for energy management, transportation, or other developments,” he said.
Since last year the multinational has reinvigorated its brand by relaunching some of its businesses, such as elevators and escalators, construction machinery, information systems and home appliances, particularly refrigerators.
“We have found a great potential for [our growth in] the Philippines because of its very huge population—more than 100 million—with [mostly a young work force at an average age of] 23 years old,” the top executive noted.
Hitachi revitalizes its presence in the domestic market as it positions itself as a consolidated one-stop service solutions partner for the country’s inclusive growth and sustainable urban development, as well as offer technological solutions for pressing social issues,
Seeing the important point of development in the Philippines is how Metro Manila’s progress will extend to other parts of the country in the next two to three years, the company is keen on realizing this.
Shimizu said around 60 percent of the nation’s GDP depends on the metropolis, including Cavite and Laguna, as 60 percent of the entire population resides in this area.
“So Clark or Subic will be one of the solutions [on where] to expand [the reach of development of] the area of Metro Manila. That’s why Hitachi would want to contribute more to that corridor between Clark, Subic and Metro Manila,” he said.
To help address the urgent need to expand public transportation beyond the key cities, the global leader in social innovation business also expressed its desire to join in other PPP initiatives of the government.
Hitachi is chasing the Philippine National Railways’ (PNR) North-South Commuter Railway (NSCR) project in Luzon, a 38-kilometer elevated commuter train line from Tutuban, Manila, to Malolos, Bulacan—whose initial phase will be financed by the official development assistance from the Japanese government at around $2 billion.
“This is a very huge project. So we are just waiting for this maybe by end of this year,” Shimizu said.
He added they are interested in another railway project, the 55-km PNR North extension from Malolos to Clark, Pampanga, as well as the Metro Manila subway system project.
“We are waiting for the projects’ announcement,” the GM said, while reiterating they intend not to be involved in the development side of such undertakings.
“With our unique competencies in information and operations technologies, as well as our proven products and systems in the global market, we are confident that we can leverage our expertise and be an innovative partner for both the public and private sectors working in areas such as transportation, energy management, railway systems and security solutions, among others,” he said.
In the 2018 Mid-term Management Plan, Hitachi aims to increase its overseas sales ratio to more than 55 percent.
The Philippines, Shimizu said, will play an instrumental role in helping the company achieve this by focusing on energy management, railway and urban development solutions, in addition to its high functional materials, and information and communications technology.
Image credits: Nonie Reyes