TAIWAN continues to strengthen its bilateral relations with the Philippines through increased investments and trade.
Taiwan Ambassador Dr. Gary Song-Huann Lin said during their 104th National Day celebration in Pasay City that there are now a growing number of Taiwanese companies operating in the country, and there are investments being made in key industries.
“In terms of investments, Taiwan has made significant contributions to the jobs creation and the economic growth of the Philippines. In 2014 Taiwan is the seventh-largest foreign investor in the Philippines. There are over 6,000 Taiwanese businessman operating nearly 600 companies in the Philippines,” Lin said.
He cited as example investments in banking by Cathay Life Insurance Co., which acquired a 20-percent stake in Rizal Commercial Banking Corp. for P17.92 billion; and Cathay United Bank, which opened this month.
There was also Kinpo Electronics Inc., which invested P1.40 billion to further expand its Batangas facilities; and Taiwan’s 7-Eleven, which formed a joint venture with its licensee Philippine Seven Corp., leading to a net income of P873 million last year.
Taiwan’s leading medical-device manufacturer Bioteque Corp. also started construction of its factory in the Philippines, and is expected to be operational soon.
“In recent years, our bilateral trade and economic relations have been growing significantly. Taiwan is the Philippines’s sixth-largest destination of export and ninth-largest trading partner,” Lin said.
The Philippines is ranked as Taiwan’s 11th-largest trading partner. Bilateral trade volume increased from $6.05 billion in 2009 to $11.60 billion in 2014.
Lin said that if the Philippines can sign a free-trade agreement with Taiwan and support its participation in the Regional Comprehensive Economic Partnership and the Trans-Pacific Partnership, investments would still increase.
“I am sure that the Philippines will be a great investment destination and gateway for Taiwanese business sector to do business with Asean region, given the Philippines’s huge population dividend, impressive domestic market, young and well-educated labor force, abundant natural resources, and geographical proximity to Taiwan,” Lin said.
Lin noted that Taiwan and the Philippines have a wide range of cooperative relations, including those in agriculture, fisheries, banking, mining, electric power, pharmaceuticals, food processing, electronics, telecommunications, labor, tourism, science, information and communications technology and education.
Meanwhile, on the tourism side, Lin said they expect to reach 210,000 tourist visiting the country annually.
Currently, Taiwan is the seventh-largest tourism market for the Philippines. Over the first seven months of the year, Taiwan tourist arrivals increased by 25.91 percent, as compared to the same period last year.
In March the Philippines and Taiwan have amended their air-service agreement, which increased weekly passenger seats from 5,400 to 20,000. Next year the allocation will further increase to 25,000, and then 30,000 in 2017.
Outside of the air agreement, Taiwan also has direct charter flights to Boracay, Cebu and Palawan.
Image credits: Nonoy Lacza