Commerce Connect Tokyo:
Supporting Business Opportunities as a Bridge Connecting the Philippines and Japan
PCCIJ Works to Strengthen Economic Ties between the Two Countries
Established in 1976, PCCIJ's mission is to strengthen friendly relations and develop business ties between the Philippines and Japan. Today, it has over 60 members, both corporate and individual. Many of them are small- and medium-sized businesses in Japan, while others include major Filipino companies such as Philippine Airlines and the Philippine National Bank.
"PCCIJ organizes events to deepen relations between the Philippines and Japan as well as meet-and-greets for member companies," Reyes says, describing the work that PCCIJ undertakes. "When delegates from the Philippines' chambers of commerce or government visit Japan, we also coordinate with the Philippine Embassy in Tokyo to organize networking events."
PCCIJ representatives also visit the Philippines once a year to connect businesses. In the past, such visits were mainly focused on Manila, the capital, but in 2024, they tried connecting companies with local enterprises in Davao City in Mindanao, the second largest island in the Philippines, for the first time.
PCCIJ's mother organization, the Philippine Chamber of Commerce and Industry, has over 30,000 member companies from across the Philippines. PCCIJ provides assistance, when necessary, by coordinating and connecting Japanese member companies with Filipino businesses. PCCIJ functions as a valuable bridge with a robust network in its home country for companies in Japan that want to expand business opportunities in the Philippines.
Cooperation between the Growing Filipino Economy and Japan
The Philippine economy tumbled into an economic recession due to the COVID-19 pandemic in 2020, but by the next year, it made a rapid recovery supported primarily through personal consumer spending. Its economic growth rate exceeded that of its neighboring countries and was one of the highest in the ASEAN region.
"The biggest factor behind the recent economic growth was domestic consumption. It also helps that our population has a lot of young people," Reyes explains. Furthermore, "Around 10% of the population lives abroad and they send money home, which helps to support the economy." It seems the money sent home by Filipinos working outside the country is a crucial pillar supporting domestic consumption.
In fact, the amount of money sent home by Filipinos working abroad grew around fivefold over 20 years between 2002 and 2022. In 2022, the amount rose to approximately 33 billion dollars, equivalent to almost 10% of the country's nominal GDP.
Domestically, the service industry is thriving the most, with the business process outsourcing (BPO) sector being particularly well-developed. The back-office operations of many European and American companies are conducted in the Philippines, where the population's strong English language skills work in their favor.
Meanwhile, despite possessing proprietary technologies, Japan is grappling with labor shortages and a lack of successors due to an aging population and declining birthrate. Reyes believes that those exceptional technologies and skills can be preserved by passing them on to people and companies in the Philippines and other countries before they disappear. Japan may need to open up more of its industries to international workers and establish systems to accommodate them. The only obstacle would be the language barrier, but using AI translations would enable better communication than before.
"Bringing together the Philippines' abundance of human resources and Japan's outstanding technologies will very likely create the best of partnerships," Reyes says.
Furthermore, as waste disposal and environmental pollution are becoming issues in the Philippines as the population grows, Reyes hopes to see more collaborations in the environmental field: "Spreading Japan's environmental technologies, like converting waste into energy and purifying water, to the Philippines will create great business opportunities."
Tokyo, Where People and Information Gather, is Full of Potential
Reyes, who came to study in Japan, previously lived in Shikoku, an island of four prefectures in western Japan, and Aichi Prefecture in central Japan as a student, before moving to Tokyo where he has resided for nearly 30 years. As someone who has experienced living in regional cities, he shared his thoughts on Tokyo.
"It's very convenient, with a highly developed transportation system," he replied. "You can also get whatever you need at all hours of the day, and the food is delicious."
He said he is amazed by how well-developed Tokyo's transportation system is, compared to the car-oriented society in Manila, where delays due to congestion have become the norm. He also finds the seasonal changes very attractive, because the Philippines is warm all year round due to its tropical climate.
What Reyes considers most attractive about Tokyo is its potential. He says, "Tokyo is where people and information gather. It's a city full of all kinds of potential, where you can meet people from all over the world."
Reyes wishes that the Tokyo Metropolitan Government would create a system to promote more networking between private companies. "Exchanges between governments are important too, but business opportunities are often born from exchanges on the private-sector level. I also think measures to support Filipino startups or companies looking to expand into Tokyo would accelerate both countries' economies."
He suggests, for example, creating a special zone for IT businesses in addition to the Special Zones for Financial and Asset Management Businesses established in 2024. He believes expanding systems that facilitate economic growth across multiple fields will prove to be effective.
Supporting Companies Take the First Step toward Expanding Their Businesses
PCCIJ will celebrate its 50th anniversary in 2026 and is currently striving to increase its member companies and strengthen its organizational foundation.
Until now, most members were businesses in human resource services or those seeking to import products from the Philippines. However, Reyes says they are now receiving more consultations from manufacturers and retail companies looking to the Filipino market.
"I hope companies aiming to expand business with the Philippines can find the opportunity to take their first step through PCCIJ," he says.
Strengthening Japan's ties, including economic partnerships, with other Asian countries will grow even more important going forward. As a bridge connecting the Philippines and Japan, PCCIJ will continue to play a crucial role in supporting the economic growth of both countries.
Allan Reyes
