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The Philippines is seeking expanded ties with Japanese companies in the manufacture of semiconductors and electronics
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The government is also exerting all efforts to lobby with the US Government for the reauthorization of the recently expired US Generalized System of Preferences
Trade and Industry Secretary Alfredo Pascual said the Philippines is seeking expanded ties with Japanese companies in the manufacture of semiconductors and electronics.
Pascual is part of President Ferdinand Marcos Jr’s delegation to Japan. The five-day visit, which began on Feb 8, is aimed at strengthening economic partnership between the Philippines and Japan.
In a meeting with Japanese companies that have export-oriented investments in the Philippines, particularly those in the semiconductor, electronics, and wiring harnesses industries, Pascual said: “With the demand expected to grow in the global market, we would like to explore how we can encourage you to expand and upgrade your operations in the Philippines.”
The trade chief noted 11 major Japanese companies attended the meeting and presented their current operations and future investment plans. The dialogue enabled investors to air their concerns and the Philippine Cabinet members to explain what are being done to resolve these concerns, he said.
Present were Brother Industries, Ltd., IBIDEN Co., Ltd., Murata Manufacturing Co., Ltd., Seiko Epson Corporation, NIDEC-SHIMPO Corporation, Japan Aviation Electronics Industry, TDK Corporation, Sumimoto Wiring Systems Ltd., Yazaki Corporation, Yokowo Co., Ltd., and Panasonic Corporation.
Meanwhile, Pascual was asked to provide updates on renewal of the recently expired United States Generalized System of Preferences. The GSP is important to Japanese companies exporting to the US for duty-free entry of their export products from the Philippines.
He said the Philippine government is exerting all efforts to lobby with the US Government for the GSP reauthorization.
The manufacture of semiconductors, electronics, and wiring harnesses is considered one of the top contributors to the country’s economic growth, according to the Department of Trade and Industry in a statement.
In 2021, the agency said the Philippines was the fourth largest exporter of wiring harness in the world after Mexico, China and Romania. Global market share of wiring harness exports is 7% (US$2.3 billion annual sales). The Philippines is also one of the lowest cost producers of wiring harness in the world based on export value and quantity.
The Philippine electronics industry is classified into 73% Semiconductor Manufacturing Services and 27% Electronics Manufacturing Services. Most of the electronics businesses in the country operate in four key areas: Metro Manila, CALABARZON, Northern/Central Luzon and Cebu. The industry employs over three million direct and indirect workers.
RELATED READ: PH electronics exports hit record $45.92B in 2021
