The Philippine Economic Zone Authority (PEZA) banks on the country’s strategic location, effective business ecosystem and generous fiscal incentives package for investors in capturing multinational corporations (MNCs) that are relocating their export manufacturing facilities from China to Asean.
Tereso Panga, director-general of PEZA, said in channelling “Asean-connector trade and investments” into the Philippines, investment promotions agencies (IPAs) can pitch the county’s participation in various international agreements as a vital link to other markets. These include the Indo-Pacific Framework, Regional Comprehensive Economic Partnership and other free trade agreements and the trilateral agreement with US and Japan in support of the Luzon Growth Corridor, and the US CHIPS & Science Act.
Asean has been regarded as a “connector” between the US and China, Panga said.
“We need to capture as well those MNCs that relocate their export-manufacturing facilities from China to Asean,” said Panga.
PEZA is particularly keen on tapping Taiwan ’s Plus One Strategy and New Southbound Policy in capturing those investments
Taiwanese companies operating in China and even Taiwan have adopted the China+1 and Taiwan+1 strategies to de-risk global supply chain by establishing alternative manufacturing sites, diversification of supply chains and improvement of domestic production.
Panga said Taiwanese companies have been setting up off-shore facilities mainly in Asean to avail of zero- or lower tariff on their exports particularly to European Union and the US.
“The Philippines’ proximity to Taiwan makes it central to Taiwan Plus One Strategy & New Southbound Policy. With our bigger landmass, natural and human resources, the Philippines can be an ideal alternative site for Taiwanese companies into domestic and export manufacturing. We can very well facilitate and support the growth of Taiwanese and other global investors with the Philippines being regarded as one of the best performing economies in the region, and enjoying a demographic sweet spot and dividend with a young, English-proficient, highly skilled and trainable work force,” Panga said.
PEZA aims to target strategic and high-tech industries from Taiwan that will provide for ecozone product sophistication, export diversification, labor-intensive and high-skilled jobs, knowledge transfer, enhanced local supply chain, and creation of industry clusters.
At the recently concluded investment mission to Taiwan, PEZA was able to generate leads from prospective as well as existing Taiwanese investors into electronics manufacturing, EV transport, agro-processing, information technology solutions, renewable energy, and real estate development.
Source: Malaya Business Insight
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
