Taiwanese investments in the Philippines far outnumbered mainland Chinese investments and more Taiwanese firms have expressed keen interest in the country following the signing of the Bilateral Investment and New Southbound Treaty.
Tereso O. Panga, deputy director general and officer in charge of the Philippine Economic Zone Authority (PEZA), said at the ongoing Philippine Investment Mission to Taiwan led by Trade and Industry Undersecretary and Board of Investments Managing Head Ceferino S. Rodolfo. The investment mission was organized by the DTI-Philippines Investment Trade Center, Manila Economic and Cultural Office, Taipei Economic and Cultural Office, and Taiwanese Business Chambers.
As of July 2022, Panga reported there are a total of 108 Taiwanese enterprises registered in PEZA. They are into real estate activities, electrical machinery and apparatus, N.E.C, wearing apparel, fabricated metal products, radio, television and communication equipment and apparatus.
In PEZA, he said, the Taiwanese are the bigger investor than the mainland Chinese with their approved cumulative investments of P24.7 billion.
These companies contributed a total P32.87 billion of investments, $535.527 million of exports, and 46,564 direct jobs.
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).
Given Taiwan’s status as the 7th largest economy in Asia and 20th largest in the world by purchasing power parity, certainly the Philippines will benefit from its increased economic cooperation with Taiwan.
Moreover, Panga said that Taiwan 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.