The country may see a spike in investments from Taiwan in 2015, as prevailing tensions between China and several countries over the sea row are piquing the interest of Taiwanese firms in the Philippines, the Manila Economic and Cultural Office (Meco) said.
Amadeo R. Perez Jr., Meco chairman, said at least five firms are eyeing to set up operations in the Philippines in 2015.
Three of these firms are in electronics manufacturing and may bring in a minimum of $10 million each in fresh investments. The remaining companies engaged in agribusiness and trading of medical equipment.
Aside from the five Taiwanese firms, Meco is also courting other electronics manufacturers such as Foxconn, a parts supplier of Apple, which is reportedly eyeing the Philippines as a possible destination. The electronics parts supplier visited the Philippines three months ago and toured several economic zones.
The trade department, for its part, has also been courting financial institutions like Taiwan’s Cathay Financial in the past year, according to a source that requested anonymity.
“[Trade Seretary Gregory L.] Domingo has been talking to financial institutions in Taiwan to finance loans by our banks here to loan out to borrowers. It’ll help stabilize our economy with the infusion of more capital,” said the source, adding that the institutions that are having discussions with Domingo are keen on setting up operations here.
The trade official said some Taiwanese investors have observed that labor cost in China is already rising. This is compounded by the power interruptions and policy decisions affecting investors in China.
Also, the official said the hiring preference of Taiwanese businesses is being affected by Taiwan’s relations with China. The source said Filipino work force in Taiwan is expected to increase in 2015, as Taiwanese firms are now hesitant in employing Vietnamese workers after the anti-Chinese destruction spree they carried out earlier in the year that affected Taiwanese factories and property.
The Taiwan-Philippines bilateral trade reached $12 billion in 2013, with imports from Taiwan pegged at $9.78 billion, mostly electronics. Philippine exports to Taiwan reached $2.2 billion. Taiwan is the tenth-largest foreign investor in the Philippines in 2013.
The Philippines was Taiwan’s third-largest trading partner among Asean nations in 2013, just behind Singapore and Malaysia, and stood as the seventh top export market in the same year.