Taiwanese investments registered with the Philippine Economic Zone Authority (PEZA) reached P32.3 billion, substantially higher than the cumulative investments from mainland Chinese.
At the virtual Global Biz with Taiwan, PEZA Deputy Director General Tereso Panga said that to date, PEZA has registered 112 locator companies with Taiwanese equity of P32.3 billion and providing employment to close to 40,000 Filipinos. In contrast, Panga said, cumulative investments from the mainland Chinese reached only P24.7 billion.
Among the big ticket Taiwanese investors include Sunon Properties (P4.5 billion), Tong Shing Electronics (2.9 billion), Kinpo Electronics (P2.1 billion), and its affiliate company Acbel Polytech (P1.7 billion).
In terms of FDI inflows, Panga reported that Taiwan was 7th largest foreign investor in the Philippines in 2014. It improved to 3rd largest in 2016. “And now, this highly developed capitalist economy is back to its old spot as 7th biggest source of FDI for the country. Through this PEZA Global Biz with Taiwan, we hope to regain Taiwan's lead as among our consistent topmost investors."
With the signing of Bilateral Investment Agreement and New Southbound Trade Treaty between the two economies, PEZA has joined forces with the Manila Economic and Cultural Office, Taipei Economic and Cultural Office, and Department of Trade and Industry-Philippine Trade and Investment Center in conducting investment and trade promotions to be able to attract more FDI from Taiwan and increase its share in the ecozone investments and exports of goods and services.
Meanwhile, PEZA Director General Charito B. Plaza led the PEZA Briefing and Testimonial for the newly appointed MECO Chairman and Resident Representative to Taiwan, H.E. Wilfredo Beltran Fernandez, and his counterpart TECO Head of Mission, H.E. Michael Peiyung Hsu. They were joined by other top officials from the MECO, TECO and DTI-PTIC in Taipei headed by its Director for Commercial Affairs, Mr. Anthony Rivera.
Given Taiwan’s status as the 7th largest economy in Asia and 20th largest in the world by purchasing power parity, Plaza said the Philippines will certainly benefit from its increased economic cooperation with Taiwan.
Taiwan’s economy is driven by a competitive manufacturing sector in the fields of electronics, machinery, petrochemicals, energy, and ICT products.
With the CREATE investment and tax incentives in place, PEZA aims to 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.
“As the Philippines is poised to recover in 2021, and with a projected stronger growth in 2022—we remain bullish in PEZA that we will overcome the covid-19 crisis and surpass our pre-pandemic investment performance. We look forward to our dynamic partnership with MECO, TECO and DTI-PTIC, and to hosting soon more Taiwanese investors in any of our 416 world-class and environment-friendly economic zones nationwide,” Plaza said.