2 big Taiwanese firms to invest P1-B in RP

Two big Taiwanese firms are set to invest up to $1.011 billion in the Philippines even though more Taiwanese investors are being deterred by the country’s continuing peace and order problem and the lack of basic infrastructure, according to newly designated Taipei Economic and Cultural office (TECO) representative Ambassador Hsin-hsing Wu.

In an introductory lunch with newsmen, Wu disclosed that the Philippines only manages to get about two percent of total Taiwanese investments in the ASEAN region including China.

Last year, Wu said, Taiwanese direct investments in the Philippines amounted to $234.57 million, second only to the investment of Japanese investors.

Wu said that more Taiwanese investments would go to the Philippines if the government is able to solve its peace and order problem, specifically kidnapping.

"Government has to improve its infrastructure," Wu explained, citing as an example the lack of a high-speed or dedicated highway between Manila and the Subic Freeport where there are some 38 Taiwanese companies operating who account for almost 89 percent of exports emanating from Subic.

Taiwanese businessmen, Wu said, like the Philippines because of its friendly, hospitable and skilled workforce and the similarity in culture and food.

One of the biggest Taiwanese firm operating in Subic, Wistron (formerly Acer), Wu said, is in fact, investing another $11 million to expand its production of laptop computers.

Another Taiwanese firm, Wu added, is also set to make a $1-billion investment in a 10-year Build-Operate-Transfer (BOT) water purification project in Laguna Lake.

Kintech Technology Co. Ltd., Wu said, recently won the bidding held by the Laguna Lake Development Authority (LLDA) for a water purification project for Laguna Lake.

A construction contract, however, is still being negotiated which would involve the construction of at least 10 purification facilities to be located in different sites along the Laguna Lake.

The quality of the water would reportedly be as clear as mineral water.

Kintech would initially sell and provide the purified water to the Alabang area.

However, Wu admitted that Kintech has some misgivings about the existing water piping system which could contaminate whatever purified water it produces.

Wu could not give details as to how much the water project would cost the government although the project would supposedly help lower water rates in the country.