RP seeks concessional loans from Taiwan

Taipei – The Philippines will seek concessional funding from Taiwan under its so-called Jung Phang Project to attract Taiwanese business people to invest in the Philippines.

This was disclosed by Manila Economic and Cultural Office (MECO) chief executive officer Antonio I. Basilio who explained that the Jung Phang financing facility is a low-cost or concessionary funding facility which Taiwanese businessmen wishing to put up businesses in Central and South American countries with diplomatic relations with Taiwan can access.

The attractively priced fund is intended to encourage Taiwanese business people to put up businesses in Central and South American countries.

The attraction of the Jung Phang Project for the Philippines, Basilio said, is the growing realization among important sectors in Taiwan that a similar funding facility should be put in place to give real teeth to the "Go South" policy that the Taiwanese government has been trying very hard to sell to Taiwanese businessmen as a strategy to lessen their over-dependence on Mainland China as the overwhelming destination of choice.

At present, Basilio admitted, the Philippines has no firm amount in mind to seek from Taiwan under the Jung Phang facility.

However, Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza would like to secure at least $23 million from the Jung Phang facility to refinance an earlier $23 million loan to develop 100 hectares of phase I of a new industrial park that would house several new Taiwanese locators which the SBMA is currently courting.

Basilio pointed out that while the "Go South" policy has been in place for quite some time now, no discernible uptake in investment in the Philippines has taken place.

Asking Taiwan to extend a Jung Phang-type financing facility for the Philippines, Basilio said, would provide the financial come-on to the "Go South" Policy.

Thus, instead of simply urging Taiwanese businessmen to invest in the Philippines, providing low-cost money to would-be Taiwanese investors would be a more "real come on."

During a courtesy call to Taiwan Economics Minister Ho Mei-Yueh, MECO Chairman Tomas Alcantara broached the Philippines’ interest in tapping the facility even though the Philippines technically does not have diplomatic relations with Taiwan.

The Philippines broke off diplomatic ties with Taiwan in 1975 when it recognized the People’s Republic of China and adopted the "One China" policy. However, the Philippines maintains informal economic, political and cultural ties with Taiwan.