THE Philippines stands to benefit from the escalating tension...

THE Philippines stands to benefit from the escalating tension between Japan and China as Japanese investors are planning to move their funds out of China and into countries, Trade and Industry Secretary Juan Santos said.

"The signal we gathered is that there could be shifting of interest from China to other countries like the Philippines because of the ongoing political situation between Japan and China," Santos said in an interview after meeting with Japanese investors last week.

Santos met with officials of the Kansai Economic Federation or Kankeiren in Osaka, Japan, last week.

The Kankeiren, a private, non-profit group with 860 members from influential business groups, accounts for about 20 percent of Japanese investments worldwide, Santos said.

Japan and China relations have been strained recently and the escalating tension is affecting diplomatic ties between the two economic giants.

Kankeiren officials told Philippine trade officials that 80 percent of Japanese investors who have traditionally gone to China ae looking for alternative sites, the Philippines is emerging as a strong option, Santos said.

Japan, the second-biggest investor in the Philippines after the United States, invested P26.6 billion in the Philippines last year, Santos added.

Japan became the Philippines' biggest export market as of last year, and is the second major source of tourists.

"We are seeing a returning confidence of Japanese businessmen in the Philippines and they are considering increasing their investments," Santos said.

Mining is an area of particular interest to Japanese investors, he said. "The Philippines is very serious in developing mining and we told investors that we are avoiding the mistakes in the past," he said.

While in Japan, Santos signed a memorandum of agreement with Nagoya Kyoritsu Hospital that would allow the group to put up a state-of-the-art radiology center in the Philippines.

Toku Sheia, which owns more than 50 hospitals in Japan, is also looking at potential investments in the Philippines, Santos said.

Kobe Busan, a supplier to hotels and restaurants, committed to invest $8 million to put up a production center in the Philippines that would supply the requirements of its regional shops, he added
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