Philippines Poised to Strengthen Economic Partnership with Japan
Executive Secretary Ralph Recto declared on Thursday, February 19, 2026, that the Philippines is fully prepared to welcome more Japanese investors and expand bilateral trade. He emphasized that policy alignment and improving business conditions are creating a favorable environment for enhanced economic cooperation between the two long-standing allies.
Recto Highlights Ripe Conditions for Investment
Speaking at the welcome dinner for the 42nd Annual Joint Meeting of the Economic Cooperation Committees of the Philippines and Japan, held at the Goldenberg Mansion in Malacañang on Wednesday, Recto stated that conditions are "ripe" for a stronger economic partnership. "The Philippines is ready to do more business with Japanese partners," he affirmed. "You want clear rules. You want a coordinated government. And you want decisions made, without delay. That is exactly what we are working to deliver."
Recto underscored the Marcos administration's commitment to improving the ease of doing business, ensuring fairness and predictability for all investors. "Investors do not ask for favors, only fairness, predictability, and speed. Our answer is to make doing business in the Philippines easier, faster, and more reliable," he explained.
Bilateral Trade and Investment Figures
Bilateral trade between the Philippines and Japan reached approximately P1.27 trillion last year, with the Philippines achieving a surplus. Japan remains the country's second-largest trading partner and the top source of foreign direct investments, contributing P42.5 billion in inflows during the first 11 months of 2025.
Infrastructure and Competitive Advantages
Recto pointed to major infrastructure projects, such as the Metro Manila Subway, as prime examples of Japan's high-quality and long-standing investment presence in the Philippines. "Exhibit A of Japan being a premium brand is the Metro Manila Subway, whose reputation precedes it simply because of its Japanese provenance," he noted.
He also highlighted the Philippines' skilled workforce and strategic location in a rapidly growing region as key competitive advantages that attract foreign investment.
Tourism and People-to-People Exchanges
On tourism and cultural exchanges, Recto revealed that nearly 407,000 Japanese visitors traveled to the Philippines in the first 11 months of 2025, while approximately 825,000 Filipinos visited Japan last year. "There is, however, room for improvement. And the challenge is to unlock the tremendous possibilities," he concluded, signaling ongoing efforts to deepen ties beyond economic metrics.
