THE Philippines will gain more from Taiwan’s continuing moves to divert its manufacturing market from China, the chief of the Philippine Economic Zone Authority (PEZA) said on Sunday.
The Taiwan Plus One Strategy and New Southbound Policy make the Philippines a desired option as an investment hub. “With our bigger landmass, natural and human resources, the Philippines is an ideal alternative site for Taiwanese companies which are into domestic and export manufacturing,” PEZA Director General Tereso Panga said. “We can very well facilitate the investments, and support the growth of Taiwanese and other global investors, since the Philippines is regarded as one of the best performing economies in the region.”
The Taiwan Plus One Strategy — which seeks to mitigate economic risks amid geopolitical tensions and supply chain issues — encourages Taiwanese businesses to add one country to their supply chain, particularly in Southeast Asia, India, and other regions.
The New Southbound Policy, launched in 2016, promotes Taiwan as a partner in enhancing economic cooperation, trade, investment, and cultural exchanges in Southeast Asia, Australia and New Zealand.
Taiwanese companies have been adopting these two business approaches.
“We need to capture as well those [multinational corporations] that relocate their export-manufacturing facilities from China to Asean (Association of Southeast Asian Nations),” Panga said, adding that Taiwan not only wants to enhance trade and investment ties, but also to leverage Asea’s growing economy.
Citing a recent study, Panga said Asean is the fifth largest economy globally and has become a vital connector in the shifting trade dynamics between the United States and China.
Thus, Panga pointed out, PEZA and other investment promotion agencies can make a bid for their ecozones that can provide a strategic location, effective business ecosystem, and fiscal incentives for investors, especially in light of the Create More law.
The Philippines has signed new bilateral investment agreements with Taiwan involving cooperation in various sectors such as technology, tourism, agriculture, and education.
“Given Taiwan’s status as the seventh largest economy in Asia and 20th largest in the world by purchasing power parity, certainly the Philippines will benefit from increased economic cooperation [with this country],” Panga said.
Moreover, Taiwan is driven by a competitive manufacturing sector in electronics, machinery, petrochemicals, energy, and information and communication products.
PEZA is likewise wooing strategic and high-tech industries from Taiwan to provide ecozone product sophistication, export diversification, labor-intensive and high-skilled jobs, knowledge transfer, enhanced local supply chain, and creation of industry clusters to the Philippines.
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