President Benigno S. Aquino III on Monday graced the opening of the Manila branch of Japan’s Sumitomo Mitsui Banking Corporation (SMBC), the first foreign bank to operate in the country, which is seen to attract more foreign investment.“This ceremony represents the beginning of a new chapter of SMBC’s ties with the Philippines, one that cements your position in our local banking industry,” President Aquino said during the ceremony held in Makati City.
The Chief Executive recalled that it was during his visit to Japan in December 2013 that SMBC suggested the liberalization of the Philippine banking industry, which led to the passage of Republic Act (RA) No. 10641.
“This was completely in line with our administration’s philosophy, and barely seven months later, in July 2014, our government passed Republic Act 10641,” he said.
Approved by the President on July 15, 2014, RA 10641 allows the full entry of foreign banks into the Philippines.
“We were extremely pleased to see that SMBC remained first in line in the application process, and now possesses the distinction of being the first foreign bank approved for a Philippine operating license under this new law,” he said.
The central bank has approved five other foreign banks to operate in the country under RA 10641.
The President expressed his gratitude to SMBC for putting its confidence in the Philippines.
“These are all milestones we achieved together; these are all milestones that show the depth of SMBC’s confidence in the Philippines. This is something for which we are extremely grateful: that, whether in 1995 or the present, you saw the vast potential of the Philippines—and you chose to take action and to partner with us in realizing the very same,” he said.
President Aquino admitted that the country has some catching up to do compared to its neighboring countries in the ASEAN, in terms of foreign direct investments “likely due to the unstable political and economic atmosphere prior to our administration”.
“The good news is that the Philippines has gained much momentum in the past five years, thanks, in large part, to partners like SMBC and, indeed, the country of Japan,” he said.
He cited Japan as the country’s top trading partner, with trade volume at about US$19.15 billion in 2014, as well as the top source of IPA-approved foreign investments in the same year.
This is made evident in the sheer number of Japanese firms that have established themselves in the country, such as Toyota and Tsuneishi, the Chief Executive said.
He also cited the International Wiring Systems Philippines, a wiring harness company based in Tarlac that is working under the Sumitomo Group.
The President also mentioned Japanese clothing retailer Uniqlo, which has already established 27 out of an initial target of 200 stores in the Philippines.
The opening of SMBC’s Manila branch, he said, would also help facilitate the entry of Japanese investors in the country.
“SMBC’s operations in the Philippines will create even more opportunities for all of us. You already have a well-established reputation in Japan; some of your clients may already be eyeing our country for their expansion plans,” he said.
“Your presence here is a factor that encourages them to hasten their investments in the Philippines, because, in you, they already have a partner who knows the terrain, and who knows what they need,” he added.
President Aquino said the gathering also heralds the “beginning of an era for the Philippines: one in which we are ready to face head-on the challenges of competing, innovating, and thriving on a global scale”.
“My country has only begun to realize its potential, and exciting times lie ahead. I know my countrymen, and I know that they will do everything in their power to ensure that we make the most of the opportunities that the years will bring—that we can all synchronize our efforts to ensure a future of sustained and inclusive progress for the Philippines,” the President said as he concluded his speech. PND (co) |