DESPITE recent corruption scandals in Philippine public works, envoys from Japan, Canada, and the European Union said investor confidence and free trade negotiations remain intact, citing strong monitoring mechanisms and visible government action against graft.
Japanese Ambassador Endo Kazuya said Tokyo’s infrastructure support-such as flood control projects along the Pasig River and flagship railway systems-remains unaffected.
‘Japanese companies continue to see the Philippines as a growth market,’ Endo noted, stressing that strict audits and third-party consultants safeguard Japan’s Official Development Assistance (ODA) projects.
Japan’s ODA has funded multiphase flood control initiatives, including the Pasig-Marikina River Channel Improvement Project and the Cavite Industrial Area Flood Risk Management Project, both designed to protect urban and industrial zones.
In Davao, Japan supported the Flood Control and Drainage Master Plan and the Metro Davao Urban Development Master Plan, focusing on climate-resilient drainage systems and long-term urban flood management.
Unlike locally funded projects now under congressional probe, Japan’s role has centered on technical cooperation and planning integrity. All their ODA projects in the Philippines also undergo strict audit performance reviews-even after the aid has been completed-ensuring accountability and transparency.
Still, Endo admitted Tokyo is concerned about the Philippine government’s flood control investigation and subsequent cabinet reshuffle, saying these developments ‘can indirectly’ affect ODA projects, particularly in decision-making and continuity.
‘We’ve also been working with DPWH, and with a lot of reshuffles of personnel within the department, [this] can indirectly be influencing,’ he told reporters at the Stratbase forum in Makati on Thursday. (See related: https://businessmirror.com.ph/2025/10/09/japan-closely-monitoring-phl-anti-corruption-probe/)
Canada
Canadian Ambassador David Hartman acknowledged corruption challenges but highlighted President Ferdinand Marcos Jr.’s ‘successful foreign policy’ in strengthening partnerships.
He said Canada channels aid through NGOs and civil society groups rather than directly to the Philippine government, ensuring rigorous due diligence.
‘Our embassy in Manila has expanded rapidly as part of Canada’s Indo-Pacific strategy,’ Hartman said, adding that FTA talks remain unaffected.
Hartman stressed vigilance: ‘Frankly, we’re watching how things unfold here. We remain very much seized to the matter. We have discussions with our business community and provide advice to local stakeholders about the investment climate.’
He emphasized trust and transparency in partnerships: ‘You have to have a good sense of who your prospective partners are. You have to understand the facilitative framework and the environment in which they operate.’
Despite concerns, Hartman underscored Canada’s optimism: ‘We continue to encourage opportunities in this country.because the scale and scope of opportunity that exists in areas tremendously complementary between Canada and the Philippines are very robust.’
He added, ‘We’re ramping up our conversations around free trade and engagement. The more you trade, the more you connect, the better it is, the robustness of systems for all.’ (See related: https://businessmirror.com.ph/2025/11/14/canada-commits-%E2%82%B13-2-b-aid-and-trade-boost/)
EU: FTA Talks unhindered
European Union Ambassador Massimo Santoro affirmed that corruption scandals have not derailed FTA negotiations with the Philippines.
He said governance, including corruption, has been in the bilateral agenda of FTA and the Generalized System of Preferences Plus (GSP+).
Santoro welcomed the government’s visible anti-corruption measures, including President Marcos Jr.’s mention of graft in his State of the Nation Address.
‘Unless the government stops acting on corruption, there is no reason to project negative outcomes for trade or investment,’ Santoro said, emphasizing governance and accountability as part of the bilateral agenda.