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The Philippine Economic Zone Authority says it will intensify efforts to woo more Taiwanese investors and position the Philippines as a top investment destination for Taiwan
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A recent investment mission to Taiwan bagged seven investment pledges amounting to US$65 million
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As of July 2022, there were 108 PEZA-registered Taiwanese enterprises that contributed a total of P32.87 billion of investments, $535.53 million of exports, and 46,564 direct jobs
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PEZA remains bullish of achieving its target of 6% to 7% increase in investments this year
The Philippine Economic Zone Authority (PEZA) is looking to attract more Taiwanese investors and position the Philippines as a top investment destination for Taiwan.
“Not only do we aim to learn from Taiwan, the seventh biggest economy in Asia with the 20th largest purchasing power parity in the world, we also seek to bring to the country strategic and big-ticket investments that will be vital to our goal of economic growth and development post pandemic,” PEZA officer-in-charge and deputy director general Tereso Panga said in a statement.
Panga said PEZA aims to attract more investments in high-technology industries as Taiwan’s economy “is driven by a competitive manufacturing sector in the fields of electronics, machinery, petrochemicals, energy, and information and communications technology (ICT) products.”
PEZA went to Taiwan recently on a four-day investment mission in collaboration with the Department of Trade and Industry-Philippines Investment Trade Center, Board of Investments, Manila Economic and Cultural Office, Taipei Economic and Cultural Office, and Taiwanese Business Chambers.
During the investment mission, PEZA recorded seven investment pledges amounting to US$65 million.
Among the companies with investment pledges are:
- Expansion projects from Chimei, which proposes development of artificial intelligence-based solutions and LCD monitors;
- Budget Energy Corp., proposed project expansion of solar energy development in Hermosa and Subic;
- YFC-BonEagle International Inc. has a $40 million extension plan over the next two years;
- AcBel Polytech Inc.
- Yeng Hsing Philippine Branch
- Neotek Corp. planning to invest $6-8 million in PEZA
- Accton Technology Corp. is exploring with Neotek investment opportunities in the Philippines through PEZA
PEZA said there were also serious interests from companies during the various business-to-business meetings during the investment mission.
This includes Asia Optical Co. Inc., a company that is manufacturing scope of gun products, is looking to put up an agro-industrial park with a five-hectare ecozone area requirement and an estimated P1 billion initial cost of investment.
Medtecs International Corp. Ltd., a manufacturer of personal protective equipment, is looking for at least 100 hectares as factory site.
Other companies such as Cyberpower, a maker of car battery, power bank, and uninterruptable power supply; Haoyung International Co. Ltd., a company into green energy; and Huang Lin Machinery Co. Ltd. and Giyu Industrial Co. Ltd., are into vertical farming and hydroponics have expressed serious interest in investing in the Philippines.
As of July 2022, there are a total of 108 Taiwanese enterprises registered with PEZA that have contributed a total of P32.87 billion of investments, $535.527 million of exports, and 46,564 direct jobs.
Among the big-ticket PEZA-registered Taiwanese companies are Sunon Properties, Tong Shing Electronics, Kinpo Electronics and its affiliate company, Acbel Polytech.
With the new tax incentives in place under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, Panga expressed with confidence that “PEZA shall attract and 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.”
With the positive outcome of the investment mission in Taiwan, Panga said PEZA remains bullish that it will be able to achieve its target of 6% to 7% increase in investments this year, taking into consideration the firm growth forecasts of top ecozone sectors.
The IT and Business Process Association of the Philippines forecasts a 10-15% growth while the Semiconductor and Electronics Industries in the Philippines Foundation Inc. sees a 10% improvement.
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