By Catherine N. Pillas
SMALL and medium Japanese enterprises are keenly exploring manufacturing opportunities in the Philippines in response to the government’s Comprehensive Automotive Resurgence Strategy (CARS) Program, which aims to strengthen the country’s automotive manufacturing sector.
Japanese Chamber of Commerce and Industry in the Philippines (JCCIP) Vice President Nobuo Fujii welcomed a 14-firm Japanese External Trade Organization (Jetro) Investment Mission on Wednesday, revealing that most of the businesses are small and medium enterprises in the supporting industries—such as die and mold, and plastic parts production.
Fujii confirmed that some of the manufacturing players in the investment mission have partnerships with Toyota Motors Corp. and Mitsubishi Motors Corp. and were encouraged by the government’s CARS Program.
Tatsuhiro Shindo, executive vice president of the Jetro investment mission, affirmed that many of the businesses participating in the mission corresponded to the kind of investments in the manufacturing supply chain being eyed by the government in the CARS Program.
As a sign of the sustained interest of SME manufacturers to avail themselves of the opportunities opened by the CARS Program, Fujii said three more investment missions are coming within the month.
“Within February, there will be three more missions. One from Okaya, one from Kyoto prefecture and the other one will come from the Shizuoka prefecture,” Fujii said.
The CARS Program entails the production of large plastic assemblies, body shell assembly, and the manufacture of strategic and common auto parts.
CARS is a government stimulus program aimed at reviving the country’s manufacturing sector by specifically targeting the automotive industry, given its strong linkages to other manufacturing sectors and its multiplier effect on these sectors.
CARS provide for a government support fund of P27 billion or a budget of P9 billion for each enrolled vehicle model, for which the program opens three slots. It is a core program of the government’s Manufacturing Resurgence Program.
Image credits: Nonie Reyes