Frederick D. Go
Secretary of Finance
Thank you for the kind introduction.
Ambassador Albano (PH-Japan)
Ambassador Endo; (Japan)
Chairman Kakinoki; (JPECC & Marubeni Corporation)
President Watanabe; (Economic Research Institute for ASEAN and East Asia)
Chairman Ty; (PHILJEC)
Distinguished Co-Chairs and officials of PHILJEC and JPECC;
Esteemed representatives of JICA and the Government of Japan;
Distinguished members of the diplomatic corps;
Officials of the Philippine Government;
Partners from the private sector;
Special guests, good afternoon.
It is an honor to stand before you at the 42nd Annual Joint Meeting of our Economic Cooperation Committees. For more than four decades, this platform has translated goodwill into concrete action, and partnership into progress.
This year is especially meaningful. We celebrate the 70th Anniversary of the diplomatic relations between the Republic of the Philippines and Japan. Seventy years of partnership. Seventy years of trust rebuilt, strengthened, and transformed into one of the most strategic relationships in our region.
From post-war reconstruction to regional leadership, from aid recipient to economic partner, our story is one of resilience and reinvention. Japan has been with us at every critical juncture of our development journey. And today, we stand not only as partners—but as co-architects of shared prosperity in the Indo-Pacific.
As we move forward under the Philippine Development Plan 2023–2028 and Japan’s revised Development Cooperation Charter, we reaffirm our commitment to deepen bilateral and development cooperation—anchored on infrastructure, connectivity, innovation, sustainability, and inclusive growth.
MRT 3 Rehabilitation Project
Just two weeks ago, we witnessed another milestone in our long-standing collaboration with the signing of the Exchange of Notes for the Proposed Second Supplemental Loan of the Metro Rail Transit Line 3 Rehabilitation Project.
Thank you to the Government of Japan and JICA for the successful conclusion of this agreement.
MRT-3 is more than a railway line. It is a daily lifeline for hundreds of thousands of Filipinos. Its rehabilitation represents our shared commitment to improving mobility, productivity, and quality of life in Metro Manila.
And we are not stopping there.
As Japan’s Fiscal Year 2025 concludes this March, the Philippines looks forward to the signing of three critical loan agreements with a total value of JPY 243.31 billion, or approximately USD 1.58 billion, to be extended by JICA.
The Metro Manila Subway is the country’s first-ever underground railway system. It will transform urban mobility, reduce congestion costs, and unlock economic potential across our capital region.
The Central Mindanao Highway will connect communities, enhance agricultural logistics, and stimulate regional development in Mindanao—an island rich in opportunity.
Each project reflects Japan’s reputation for quality infrastructure—durable, efficient, and future-ready. And each project reflects the Philippines’ determination to build better, faster, and smarter.
Japan as largest PH development partner
Today, Japan remains to be the Philippines’ largest provider of Official Development Assistance.
As of December 2025, total loan and grant commitments amount to approximately USD 13.96 billion—representing 33.54% of our total ODA portfolio.
Japan is our largest ODA loan provider, accounting for USD 13.65 billion, or 34.44% of total ODA loans.
And it is also our third largest ODA grant provider, with USD 307.97 million, or 15.60% of total ODA grants.
Our cooperation pipeline remains strong and forward-looking.
For Japanese Fiscal Year 2026, we are targeting the signing of eleven additional loan agreements with an estimated total of JPY 371.31 billion, or roughly USD 2.41 billion. This reflects continued alignment between our infrastructure priorities and Japan’s development support.
Since the start of the administration, twelve loan agreements have already been signed, amounting to JPY 910.38 billion, or approximately USD 5.92 billion. These projects are now moving from commitment to implementation, translating financing into physical progress on the ground.
All these figures speak volumes. They reflect trust in the Philippines’ economic direction, confidence in our institutions, and a shared belief in long-term partnership.
This is good news. It reflects sustained growth, macroeconomic stability, and structural reforms. It is a testament to our people’s hard work and our partners’ support—including Japan’s.
This is our model. Private capital as a force multiplier. And public institutions as enablers. Together, we build ecosystems.
The PH Economy
I would like to assure everybody that the long term fundamentals of the Philippine economy remains intact and on solid footing – strong GDP growth, manageable inflation, a robust labor market, and prudent fiscal management.
Even with the extraordinary challenges in the second half – external shocks, war, tariffs, natural calamities, and the President’s flood control exposé – growth moderated to 4.4 percent for the year. This is well above the global average of 2.9 percent.
According to PSA and leading multilateral institutions like ADB and the World Bank, our economy is expected to regain momentum and bounce back to a 5 percent level of growth or higher in 2026.
Inflation remained controlled at 2.0% in January, within the government’s target range of 2-4%. This signals growing domestic economic activity.
National Government debt in 2024 is at 60.69%. General Government debt is 53.88%. Way below the 70% international threshold for general government debt-to-gdp ratio.
The country continues to receive triple B plus and A- credit ratings with stable and positive investment-grade marks from major international agencies.
At the same time, the three pillars of growth remain solid and reliable. In 2025, remittances from Overseas Filipinos totaled 35.63 billion USD. Export revenues in 2024 reached 106.7 billion USD and the business process outsourcing sector generated 32.3 billion USD. Together, these pillars continue to anchor the resilience and momentum of the Philippine economy.
And just recently, the Philippine Stock Exchange Index surged to one of its strongest levels in six months, fully wiping out losses since last year’s State of the Nation Address.
The benchmark index now stands near the 6,500 level.
Markets are forward-looking. That surge reflects strong confidence in governance, in policy continuity, and in the country’s economic direction.
Making the PH More Conducive for Business
The government has been putting together policies and programs to create an environment more conducive for businesses to thrive. Let me highlight five.
The Philippines now has the most open and liberal investment environment in its history.
We have implemented decisive, progressive reforms:
First, enacting the CREATE MORE Act, which offers up to 40 years of fiscal and non-fiscal incentives;
Second, implementing the new PPP Code to promote greater public-private sector participation;
Third, amending the Investors’ Lease Act, extending lease terms to as much as 99 years, giving non-Filipinos and Filipinos an option to secure land for long-term investments. This is a practice that is at par with the best in Asia.
Fourth, the Accelerated and Reformed Right-of-Way Act, which helps push critical infra projects forward. We had identified this as the main reason for delays in infra projects in the past, and have acted upon it.
Fifth, the implementation of CMEPA, which reduces the stock transaction tax (STT) from 0.6% to 0.1%. This practice is now aligned with Hong Kong, Singapore, Thailand, Indonesia, Vietnam, and Malaysia whose stock transaction taxes are either 0.05 or 0.1%, while PH was at 0.6%.
For strategic investments to enter the country, the government will continue to enhance the ease of doing business, reduce the cost of doing business, and promote greater predictability in doing business.
This means streamlining processes, shortening approval times, and giving investors clarity.
PPP Projects
Circling back to PPP, I’d like to highlight that the Marcos Jr. administration successfully awarded three major airport projects, including the main gateway—Manila International Airport, the New Bohol International Airport in Visayas, and Laguindingan International Airport in Mindanao.
When we first said we would privatize the Manila airport – nobody believed us. Today, we have done three in just the first half of the admin. I hope you are convinced. Despite the distractions, this government means business and will continue to pursue the right reforms and programs.
And the momentum continues. Several flagship projects are available for PPPs. At the last Economic Development Council, we just approved the 105.7 billion pesos PPP for public school infra projects aimed at closing classroom gaps and providing better learning environments for our youth.
Together, these investments will expand access to education, healthcare, ease daily commutes, and build a more connected, more resilient Philippines.
We have 209 infrastructure flagship projects and 49 of them are under PPP. We are actively inviting you to submit unsolicited proposals and participate in solicited bids. The PPP Center and DepDev have a complete list.
Big Bold Reforms: The Philippines 2026
Last January 16, we held our flagship event–– the Big, Bold Reforms Philippines economic briefing with leading private-sector stakeholders, with the goal of inspiring optimism, strengthening partnerships, and renewing investor confidence.
At that event, several big, bold reforms and solutions were presented.
Obligations under the CARS Program
And just recently, the Government finalized a funding solution to ensure that government obligations under the CARS Program will be fulfilled.
This is proof that the Government stands by its commitments and remains fully supportive of long-term investments in the Philippines.
Two-week Visa Free Entry for Indian and Chinese Nationals
We have also relaxed visa requirements for India and China, two of the most populous countries in the world.
Indian and Chinese nationals may now enter Manila and Cebu visa-free for stays of up to 14 days, and up to 21 days for holders of valid AJACSSUK (America, Japan, Australia, Canada, Schengen, UK) visas.
This move is expected to strengthen tourism, trade, and investments in the country.
Trade and investment updates
Let me now turn to some updates on trade and investment.
We are steadily expanding our economic partnerships. We have four bilateral trade agreements, eight ASEAN trade agreements, and we are exploring nine more free trade or economic cooperation agreements.
Our direction is clear. We are keeping Philippine trade policy open, relevant, and future-oriented.
We continue to see strong interest in the Philippines—from both domestic and foreign investors. IPAs and BOI approvals stand at 1.9 trillion pesos in 2024.
Closing
At its core, the Philippines–Japan partnership is built on shared principles.
We believe in a rules-based order. We value transparency and accountability. We understand that economic strength underpins national security.
Moving forward, I see a partnership that continues to evolve and even more focused on results. Japan has been a steadfast partner in our past. It is a strategic partner in our present. It will remain an indispensable partner in our future.
To our friends in the Government of Japan and in Japanese industry, the Philippines stands ready. We are one of the most dynamic growth markets in the region. We offer a young and capable workforce, a strategic location in the Indo-Pacific, a reform-driven government, and a clear pipeline of infrastructure and investment opportunities.
I express our sincere gratitude to the Government of Japan, JICA, JBIC, and our private sector partners for your continued trust and confidence.
Maraming salamat po. Arigato gozaimas!
