Business Talk: Ambassador Kazuya Endo, Embassy of Japan in the Philippines
Ambassador Kazuya Endo, who assumed office as Japan’s Ambassador to the Philippines in March 2024, has been actively involved in strengthening the ties between Japan and the Philippines since his appointment. Now nine months into his role, how does he perceive the current and future landscape of the Philippines?
Ambassador Kazuya Endo / IMAGE from Philippine Primer
With his prior experience as Director-General of the Ministry of Foreign Affairs’ International Cooperation Bureau, Ambassador Endo shares his insights on the investment climate in the Philippines, the current state of bilateral relations, and future collaborations. He also provides a message to Philippine Primer, which has reached its 200th issue of the Japanese magazine.
Philippine Primer
What brought you to the Philippines and what was the experience like?
Ambassador Endo
My first visit to the Philippines was in the mid-1990s when I traveled here as a young officer in the Ministry of Foreign Affairs’ Grant Aid Division. Since then, I’ve visited several times and witnessed the growth and development of the country.
Before my appointment, I served as Director-General of the International Cooperation Bureau, where I oversaw ODA (Official Development Assistance). The Philippines is one of the most important countries, with significant projects such as the Metro Manila Subway Project (MMSP) and the North-South Commuter Railway (NSCR). There has also been support for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), so I’ve always felt a strong connection to the Philippines.
Philippine Primer
It has been nearly two years since the Marcos administration took office. What are your thoughts on the current economic situation and investment climate in the Philippines?
Ambassador Endo
There are, of course, differences from the previous administration, but the Marcos government shares a similar fundamental approach to public investment, continuing the “Build, Build, Build” policy of the Duterte administration with “Build, Better, More.”
The Marcos administration began in June 2022, during the global recovery from the pandemic, facing challenges like interest rate hikes and inflation. Although last year’s growth fell short of the target, the government has managed the economy relatively well, minimizing damage to the real economy despite the tightening financial environment.
Looking at the investment climate, while inflation and rising wages are challenges for companies manufacturing domestically, the Philippine market still offers opportunities, as products can sell even with price increases. In the medium to long term, despite various challenges, the Philippines is expected to sustain growth, and how investors tap into the retail market will be a key interest. We hope to support efforts in this area.
A significant aspect of the Philippines’ future is its young, abundant workforce and its growing population. Under these demographic trends, expanding and attracting manufacturing industries should be a priority for the Marcos administration.
For Japan, strengthening ties with the Philippines is a natural step, particularly as we face various policy issues such as strengthening supply chains. The Filipino people have a deep affection for Japan, and there is strong trust in Japanese technology and products. We hope that more companies will successfully engage with the growing potential of the Philippine economy and meet local needs.
Philippine Primer
The relationship between Japan and the Philippines is stronger than ever. What factors do you believe have contributed to this deepening relationship?
Ambassador Endo
Since my appointment, I have traveled across the Philippines and wherever I went, the connection with Japan was always a topic of discussion, and I received a very warm welcome. Last year, the number of Filipino visitors to Japan was double the number of Japanese visitors to the Philippines. This year, the number of visitors from the Philippines is expected to exceed last year’s figures, which is a sign of growing affinity for Japan among the Filipino people.
Japan and the Philippines have also strengthened their cooperation in the security field. In July of this year, Japan’s Defense Minister and Foreign Minister visited the Philippines, and the Self-Defense Forces and the Armed Forces of the Philippines held joint training. Both the Philippines and Japan are allies of the United States, and various initiatives are being carried out between like-minded partners. I believe these collaborative efforts will contribute to further development and stability for both countries.
Philippine Primer
What challenges do Japanese companies face when expanding into the Philippines?
Ambassador Endo
One challenge I was aware of even before my appointment is the practical aspects of the tax system, such as tax refunds and other procedures, which are particularly critical for export-related companies. The Philippine government is aware of these issues, and recently, the “CREATE MORE Act” passed through Congress, which is expected to improve the tax collection, refund, and exemption systems.
I have had discussions with officials, including Presidential Adviser Frederick Go and other members of Congress, to address the concerns of Japanese businesses, and the Philippine side has shown a strong understanding.
Beyond the tax system, Japanese companies across various industries face a range of challenges, and tailored solutions are required for each situation. As an embassy, we are committed to listening to the concerns of companies and actively advocating for improvements in both regulatory and operational areas when possible.
The issues raised by Japanese companies are seen as critical by the Philippine government, and I have found that there is a structure in place to have detailed discussions, with the Philippine side generally being open to advice from the Japanese government.
Philippine Primer
What areas of cooperation between the two countries do you expect in the future?
Ambassador Endo
There is potential for cooperation across a wide range of sectors. Economically, we can promote infrastructure projects using ODA, facilitate smooth project implementation, further promote Japanese corporate investment and trade, and address Japan’s labor shortage by engaging with the young workforce from the Philippines. There is strong mutual interest in strengthening labor connections, and this will be key to deepening economic relations between Japan and the Philippines.
The embassy and consulates are here to support Japanese nationals, ensuring their safety, security, health, and prosperity, which is our primary mission. The development of Japanese companies and the safety of corporate personnel are also major concerns. If any issues arise, please feel free to consult with us. While there may be some things we can or cannot do, we will continue to support efforts to improve legislative and institutional matters.
Philippine Primer
What is your impression of the Philippines from a personal perspective?
Ambassador Endo
The Philippines is a country that is easy to live in, thanks to its proximity to Japan. However, I was surprised by the intense heat, especially in May. It was so hot that I wondered if it would last forever, but it became more bearable once the rainy season began.
As for the food, I’m eager to explore Filipino cuisine more. Manila has many hidden gems, and the home-cooked meals are absolutely delicious. I believe Filipino cuisine deserves to be more widely recognized in Japan.
Filipinos are also very open and friendly. Perhaps because I am an ambassador, I often receive invitations such as “Would you like to come to my house?” Ministers and senators frequently attend such occasions, and as a result, I have many opportunities to engage with people. I find the working environment here very conducive.
Philippine Primer
Do you have a personal motto or a phrase that you live by?
Ambassador Endo
While I don’t have a specific motto, I hold the phrase “ichi-go ichi-e” (one time, one meeting) close to my heart. In diplomacy, I believe it is important to value each moment and prepare thoughtfully, always considering the other person.
I also keep in mind the phrase “let bygones be bygones.” As time passes, many issues accumulate, but maintaining mental clarity is important. I try not to be overly burdened by the past.
Philippine Primer
What kind of books do you read?
Ambassador Endo
I’m a bit of an eclectic reader. The books that influenced me the most were those I read when I was young, in middle school and high school. For example, works by MARUANI Saiichi and SHOJI Kaoru, such as Uragoe de utae Kimigayo and Akazukin-chan Ki o Tsukete.
I was also influenced by NISHIBE Susumu’s Taishu e no Hangeki. These are all a bit old, and they may not be of much interest to modern readers. Recently, I’ve been reading The Making of the Modern Philippines: Pieces of a Jigsaw State, a book on the history, industry, and politics of the Philippines. It is written as a textbook for beginners and provides a broad perspective on the country. It’s been a great reference for deepening my understanding of the Philippines.
Philippine Primer
We are now marking the 200th issue of Philippine Primer’s Japanese magazine. Do you have any words for our readers and the company?
Ambassador Endo
Congratulations on reaching the 200th issue! Providing accessible and relatable information to the Japanese community is truly valuable. I hope that readers can continue to feel connected to the embassy through Philippine Primer.
