JTI Invests in the Philippines
JTI is expanding its operations in the Philippines by hiring more staff for its Global Business Service Center. Established in 2020 at the height of the Covid-19 pandemic, the center is intended to support JTI branches across the Asia-Pacific region and t
Japan Tobacco International is expanding its operations in the Philippines and recruiting more staff for its Global Business Service Center (GBSC).
Established in 2020 at the height of the Covid-19 pandemic, the GBSC was designed to provide services to JTI affiliates across the Asia-Pacific region and the Americas. In an interview with Manila Bulletin Business, JTI Philippines General Manager John Freda said the company will hire another 150 people, bringing the center’s total workforce to 600.
Although there are no immediate plans, Freda did not rule out the possibility of JTI producing its Ploom heated tobacco sticks in the Philippines, where the company operates its manufacturing hub for the Asia-Pacific region. Ploom is currently produced in Japan and the EU.
JTI’s cigarette factory in Malvar, Batangas exports more than 50 percent of its output, mainly to 16 countries in the Asia-Pacific region. The factory currently employs 800 people, while its marketing team supports more than 4,000 people nationwide.
In the interview, Freda also expressed concern about the growing illegal cigarette trade in the Philippines, which is estimated to account for 16 percent to 18 percent of the market. In some areas of Mindanao, the market share of smuggled cigarettes may be as high as 60 percent.
Citing Malaysia’s experience as an example, Freda urged the Philippines to strengthen enforcement and adopt reasonable tax rates.
“We pay 55 Philippine pesos [US$0.94] in tax per pack. Clearly, illegal operators do not pay that, and as taxes rise along with prices, smuggling becomes even more profitable, so strong enforcement measures are needed,” he said.
