According to Matsushita vice chairman of the board Masayuki Matsushita, the Philippines is globally competitive over China and Korea in the field of manufacturing.
Matsushita, which makes the National brand of household appliances, is transferring to the country early this year all its window-type air conditioning manufacturing operations from Malaysia.
The firm also plans to transfer more of its manufacturing activities to its plants in the country.
Matsushita has four subsidiaries in the Philippines operating in three different sites – Taytay, Rizal; Sta Rosa and Carmelray in Laguna.
Its local subsidiaries produce such household appliances as CTVs, refrigerators, electric fans, washing machines, electric irons, oven and toasters, fax machines, and laser scanners as well as some industrial products.
The air conditioning units are being produced in Matsushita’s Sta. Rosa plant.
Trade and Industry Secretary Manuel Roxas II welcomed Matsushita’s decision, saying that "it is a vote of confidence on the country as a desirable investment site."
"Matsushita is an important addition to the growing list of companies that have chosen to expand their Philippine operations," Roxas added.
He also said that Matsushita "clearly recognizes the high quality of labor and other production inputs that are available in the Philippines."
Roxas assured that the government is trying to create "a climate that will enable investors to compete in the global arena."
Matsushita’s Philippine operations generate a sales turnover of P41 billion annually, 17 percent of which is absorbed by the local market.
Until 2001, bulk of Matsushita’s production was sold to the local market. Last year, 41 percent of Matsushita’s output as shipped abroad.
Matsushita projects that the firm’s export sales will account for close to 60 percent of its output by 2005.
At present, 49 percent of the group’s global production comes from Asia, excluding China which accounts for another 14 percent.