RP losing out on potential Taiwanese investments

The Philippines must improve its competitiveness or else it will lose out more potential Taiwanese investments to its ASEAN neighbors, according to Philippine special trade representative to Taiwan Romulo Manlapig.

According to Manlapig, some Taiwanese footwear and bicycle makers who were initially looking at locating in the Philippines have instead decided to move to Cambodia.

Another Taiwanese manufacturer of optical discs decided to invest in another country which Manlapig did not identify.

Manlapig warned that the country would have a hard time convincing these types of industries to move here because of the relatively high cost of labor and power.

"Unless we lower the cost of doing business, we will really have difficulty in attracting them," Manlapig said.

The Philippines, however, is trying to make its easier for Taiwanese investors to invest in the country by establishing a special economic corridor specifically between Clark and Subic and Taiwan’s Export Processing Zone in Kaoshiung.

However, realization of the economic corridor is still expected to take some time as the Philippines and Taiwan continue to negotiate tariff issues and market access concerns of Taiwan.

Fadah Hsieh, vice minister of Taiwan’s Ministry of Economic Affairs, said at least five Taiwanese firms have already expressed interest to take advantage of the privileges to be derived from the economic corridor program.

One them, The Faphir Tech, which is engaged in research and development, already established a facility in Subic last June while the others are in the final stages of their preparation.

Manlapig said the niche of the Philippines at this time is in high-value, skilled labor type of businesses wherein the cost of labor and power are not the main considerations.