Center calls for more non-equity investments

THE Asean-Japan Center (AJC), an intergovernmental organization comprising the 10 member-states of the Association of Southeast Asian Nations (Asean) and Japan, is calling for other types of foreign investments to expand the country’s investor base.

The center, which promotes trade, investments, tourism and people-to-people exchanges among the eleven countries, is pushing for the non-equity mode (NEM) of investments.

Unlike equity modes, which include businesses having wholly owned subsidiaries and joint venture companies in host countries, NEMs involve exporting and contractual agreements.

In a conference organized by AJC with the Department of Trade and Industry (DTI), secretary general Masataka Fujita said NEMs could help further boost the region’s rapidly growing economy.

The Philippines already has NEMs, he said, citing business process outsourcing and franchising, two industries that are prime examples of NEMs.

Fujita urged the private sector and the government to look into how this mode of investments could be institutionalized to “yield maximum benefits for the country and the Filipino people.”

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