Ayala’s IMI CEO urges gov’t to restart economy
As manufacturing firms globally are starting to resume operations, the Philippines has been urged to also follow suit otherwise it will be left out in the global supply chain and create more damage to the economy.
This was the gist of Arthur Tan, CEO of Integrated Microelectronics Inc. – Ayala Group’s largest international electronics manufacturing company operating in 11 countries globally – during the first online General Membership Meeting of the Management Association of the Philippines where he raised concern as the Duterte administration extended the onemonth Luzon-wide lockdown for another 15 days until end this month, April.
According to Tan, the rest of the industry - the auto industry, have already announced that they were going start opening up their factories in different parts of the world and are looking now of starting the supply chain back on track.
“Whether the Philippines will continue in this extended lockdown and to what level do they want to allow manufacturing to operate is going to have an effect because the rest of the world would continue,” he said noting that the Philippines is the only country where public transportation was also locked down.
Tan warned, “If we’re not going to be part of that supply chain, it will find itself somewhere else.” IMI operates 21 factories in 11 countries. As the China factories are out and running, he said, the rest of the world are going on their cycles.
“The Philippines will have to play along these cycles. And I just want to make a point that we continue to be relevant to the global supply chain. And if not, I think it’s going to affect us on a long-term basis,” he pointed out. IMI has 5 factories in China.
Other countries have opened their public transportation, operating with very strict social distancing and sanitary requirements for public. He added that all manufacturing facilities are open the only one shut down was Mexico but is also being managed as to which part of the economy will be turned on.
He noted that each of the factories that IMI discontinued have operators on standby and on forced leave, but the governments in these factories compensated for those workers. He cited roughly $2 million in government subsidy in order to keep their business operating in support of keeping those workers.
He, however, said that IMI is not expecting the same from the Philippine government because the country has its own set of problems.
“But I think the mindset of the government that look at it not only from a health basis but also the economy basis because they know they need to be able to support the people. We don’t have to reinvent the wheel, we can just figure out what will work for us and don’t,” he said.