PEZA seeks more Taiwanese FDIS in 2024
The Philippine Economic Zone Authority (PEZA) has identified Taiwan and Taiwanese businesses as a priority market for more foreign direct investments (FDIS) to the country in 2024.
PEZA Director General Tereso O. Panga said on his social media page that the agency will “strengthen our collaboration with the Department of Trade and Industry - Philippine Trade and Investment Center (DTI-PTIC), Manila Economic and Cultural Office (MECO), Taipei Economic and Cultural Office (TECO) in the Philippines, and the Taiwanese Chamber of Commerce for the conduct of investment and trade promotions.”
This will be undertaken “to be able to attract more FDI from Taiwan and increase its share in the ecozone investments and exports of goods and services.”
He also cited the China Plus One (C+1) policy, which he said the country can leverage to attract over 4,000 Taiwanese companies and multinational corporations (MNCS) with manufacturing facilities in China that are looking for alternative sites in the Southeast Asian region.
Remarking on the 2023 Philippine Investment Forum attended by Taiwanese investors, Panga said that due to the short distance between the two nations, Taiwanese companies may opt to consider the Philippines as its first location for offshore operations manufacturing.
“The priority sectors that we are tapping for Taiwanese investments, number one is electronics,” he said.
DTI Undersecretary Rafaelita M. Aldaba also noted that since the country’s new industrial policy is driven by science and technology and innovation, the agency is planning to partner with more Taiwanese companies in “research and development, as well as in embedding new technologies like artifical intelligence (AI) in our industries.”
The Philippines currently has more than 422 economic zones, 80 of which are manufacturing zones.
These economic zones can be used by Taiwanese investors in order to capitalize on the Filipino labor pool, which Panga described as “young, English profficient, and highly skilled.”
He emphasized the role of PEZA to assist the government in attracting more investments through the economic zone program, providing employment, growing exports, and other economic opportunities.
“Among the benefits of locating in the Philippines through the economic zones is our GSP+ privileges, so if you’re exporting out of the Philippines to Europe, you enjoy zero duty on your exports. It’s only available in the Philippines across the Association of Southeast Asian Nations (ASEAN). Because of our free trade agreements (FTAS), anyone operating in the PH can enjoy zero duty as well on their exports to companies with FTAS in the PH,” said Panga.
Taiwan and the Philippines currently have an existing Bilateral Investment Agreement along with the New Southbound Trade Treaty.
According to the PTIC in November, the Philippines garnered around ₱20.6 billion in total investment leads from Taiwan-based companies in the food manufacturing, waste-to-energy plant, green product development, and metal stamping sectors. (Khriscielle E. Yalao)