Japan, Philippines To Discuss Information Sharing Pact To Fast-Track Transfers Of Warships, Aircraft

TOKYO – Japan and the Philippines said on Thursday, May 28, they would begin talks on an agreement to share classified information to allow Tokyo to step ?up transfers of military equipment to Manila, including warships.

Tokyo and Manila have been steadily upgrading defense and security ties in response to China’s growing assertiveness in the South China Sea and around Taiwan. Japan recently ?scrapped longstanding restrictions on combat equipment exports, a change expected to benefit the Philippines.

“We concurred on commencing formal negotiations for the Agreement on the Protection of Classified Military Information,” Japanese Prime Minister Sanae Takaichi said at a press announcement with President Marcos after they agreed to ?elevate ?ties to a “Comprehensive and Strategic Partnership.”

Japan is considering providing naval destroyers and patrol aircraft to Manila under a new framework for defense equipment cooperation.

“We also concurred to accelerate the exchange between the defense authorities toward the transfer of Abukuma-class destroyers and others. In order to respond to the regional strategic environment, which is growing more severe, Japan will further deepen cooperation with the Philippines,” she added.

For Marcos, closer alignment with Japan dovetails ?with his push to shore up security partnerships with the United States and its allies as the Philippines contends with repeated confrontations ?with Chinese vessels in disputed waters.

According to previous reports, six Abukuma-class destroyer escort ships would be provided to the Philippines, a move widely seen as an effort to counter China’s aggressive actions in the South China Sea.

Marcos said the Philippines and Japan intend to start talks on the delimitation of maritime borders.

“We jointly announced the commencement of the negotiations for the General Security of Military Information Agreement, as well as for the delimitation of our maritime borders,” he said.

Takaichi and Marcos also agreed to cooperate on energy security, including an initiative ?by Takaichi to help Asian countries better cope with energy shocks in the wake of the US-Israeli war on Iran.

Takaichi said Japan stands with the Association of Southeast Asian Nations under POWERR Asia, including the activities of Japanese businesses to strengthen supply chain resilience of medical products, realize an oil reserve system in the Philippines and joint oil stockpiling arrangements in the region. Japan has offered to provide up to $10-billion in assistance through the POWERR Asia orPartnership on Wide Energy and Resources Resilience launched by Takaichi last April.

Takaichi also expressed support for the Philippines’ candidature for a non-permanent seat at the United Nations Security Council in the election to be held next month.

Marcos and Takaichi also witnessed the signing of an agreement on the avoidance of double taxation, a deal that aims to enhance the business environment and promote greater cross-border investment.

Before his meeting with Takaicihi, Marcos delivered an address before Japan’s National Diet, where he emphasized the need to maintain peace and stability, respect rule of law and ensure that seas are “governed by rules, not by force.”

3 business deals signed

Three business deals seeking to harness the capabilities of artificial intelligence (AI) and make processes more efficient were signed on the sidelines of Marcos’ state visit here.

The three memoranda of understanding among Philippine and Japanese firms signed on May 27 intend to advance smart cities, digital connectivity and financial technology, the Department of Trade and Industry (DTI) said in a statement.

The deal involving Ayala Corp., Globe Telecom, Mitsubishi Corp. and KDDI Corp. aims to study “Intelligent City” initiatives in Makati City, a project that may expand to other Philippine urban areas. It seeks to use AI, Internet of Things, urban data integration platforms and advanced telecommunications solutions to enhance transportation, retail and commercial services, energy management and digital city services.

Another agreement signed by conglomerate Ayala Corp., Mynt and Mitsubishi Corp. intends to develop “Smart Life” digital services that could make daily transactions more convenient for Filipinos. The deal, which is seen to generate about P7 billion in revenues, will cover rewards programs, ticketing services, online payment platforms and digital marketing solutions.

Ayala Corp., Mitsubishi UFJ Financial Group, Mitsubishi Corp. and Mynt also inked a deal to help expand GCash money transfer services in the Philippines and in other countries.

“The partnership will develop better digital payment systems, lending services, investment products and stronger online security while integrating GCash into Ayala and Mitsubishi’s business ecosystems across retail, real estate, energy, mobility and digital services,” the DTI said.

President Marcos and Trade Secretary Ma. Cristina Roque witnessed the signing of the deals, which the administration said reflected “strong investor confidence” in the Philippines.

“We welcome these investments to the Philippines because they will bring meaningful benefits to Filipinos – from smarter and more connected communities to safer and more accessible digital financial services. These partnerships will make everyday transactions faster and more convenient while creating more opportunities for Filipino consumers, businesses and workers,” Roque said.

On Wednesday, May 27, Malacañang announced that Japanese businesses have committed to invest P210 billion or $3.4 billion in the Philippines, a development seen to generate “substantive” macroeconomic benefits, expand domestic industrial capacity and create thousands of high-quality and specialized jobs.

The commitments were made during Marcos’ high-level roundtable meeting with investors on the sidelines of his state visit here.

Malacañang said four Japanese firms – Tsuneishi Group Corp., Furukawa Electric Co. Ltd., Sumitomo Electric Industries and MinebeaMitsumi – are planning to expand their operations in the country with P61.3 billion worth of investments.

The investments are expected to generate 10,200 additional jobs, according to the Presidential Communications Office.

Political analyst Froilan Calilung, a professor at the University of Santo Tomas’ Department of Political Science, sees the pledges as something that will not only create fresh jobs but also position the Philippines as a premier investment destination.

“So when we try to forge economic ties with them, when we open globalization and integration ties with the country like Japan, it also sends a strong signal to other countries who may also be wanting to have investment schemes with us as well,” Calilung told “Bagong Pilipinas Ngayon” on PTV.

‘Force for good’

Marcos said the Philippines is determined to work with Japan to serve as a “force for good” in the Indo-Pacific, as he emphasized the importance of a rules-based order and international law.

Marcos noted the cooperation between the Philippines and Japan now extends further into maritime security, humanitarian response and regional stability.  – With Christine Boton, Helen Flores