In a report by BusinessMirror.com.ph, July 12, Japanese businessmen is now preferring Philippines over Thailand due to different factors.
One of the major factors is the rising labor costs and unstable manpower. Thailand’s unemployment rate was stable under 1 percent making the competition in labor market tight.
Metrobank Tokyo Manager Takeshi Odaka added, in an email to BusinessMirror.com.ph, “There’s an insufficient protection against natural disasters. Flooding is a routine in Thailand, and is getting worse in recent years. Besides, fewer reinsurance companies accept coverage against flooding damages.” Leaving their businesses at risk.
“The Philippines is better positioned relative to the other Asean (Association of Southeast Asian Nations) rivals when you see comprehensively in these aspects and so on,” Odaka added.
Rizal Commercial Banking Corp. (RCBC) President Lorenzo V. Tan said, “We’ve been talking to new Japanese clients moving some of their facilities from Thailand to the Philippines. They are mostly in the manufacturing industry like electronics. Some make parts for airplanes and electronics parts of cars. They are SMEs [small and medium enterprices] that supply the big Japanese corporations.”
According to the report, more Japanese companies will come to Philippines in result of Abenomics and Japan-PH partnership.