LIPA CITY, Batangas, Philippines – President Aquino assured yesterday the government has been exploring measures to cushion the effects of the global economic slowdown to the Philippine semi-conductor and electronics industry.
The industry, a major income generator, has been hardly hit by the global slowdown brought about by uncertainties in major markets such as the United States, Europe and Japan.
In his speech before the officials and employees of Epson Precision Philippines Inc during the inauguration of its new pro.duction facility, the President said he was aware of the recent global crisis hurting export-oriented companies like the semiconductor and electronics producers.
“So, in this light, we have been working overtime to come up with strategies to strengthen exports, including those in the electronics industry. We’ve been diversifying access points to manage risks in export sales. We’ve been studying prospects in North and South America, in North Asia, and in some ASEAN (Association of Southeast Asian Nations) partner countries as well,” he said.
The President said the government was also conducting export promotional activities such as fairs and outbound and inbound missions to attract investors and find new markets.
“We are continuously monitoring the situation; and we are doing what we can so that the environment you operate in remains conducive to growth,” he added.
The President said the government was also closely collaborating with the semiconductor and electronics industries in the Philippines, like the Electronics Industries Association of the Philippines and the Philippine Appliance Industry Association to make sure that industry concerns were addressed.
He said his administration was continuously trying to improve the investment climate for companies in the electronics industry. Philippine Economic Zone Authority (PEZA)-registered enterprises receive a number of fiscal incentives—from income tax holidays, to exemption from export taxes, to duty-free importation of equipment.
Aquino said the government was also providing significant fiscal and non-fiscal incentives under the Omnibus Investments Code for companies registered with the Board of Investments.
In addition, he said the BOI had also been working closely with the Advanced Research Center for Development and the Congressional Commission on Science and Technology, to improve science, engineering and technology research and development systems in the country.
“We all know the challenges facing the global economy at this time. Your continued confidence in my country signifies a shared mindset: stability does not simply mean letting things be. When something doesn’t work, you have to move to fix it — even if it means ruffling a few feathers, and even if it means taking some risks. Otherwise, strategic goals will never be met,” Aquino said.
“The strength of any corporation, any institution, any government, lies in the integrity upon which its ideals too are upheld. Passivity means erosion. By expressing their confidence in my country, Epson has shown that they recognize this — that they believe our principles in governance will have concrete, long-term benefits for our country,” he said.