MANILA, Philippines - More foreign investors are pouring in money into the Philippine electronics and semiconductor sector, encouraged by lower costs and favorable investment climate in the country.
Francisco Ferrer, Philexport trustee representing the sector, said investors are mostly Japanese companies, with some larger ones already starting construction of their manufacturing firms here.
He said there are a dozen of small Japanese and Korean firms who are also coming. More huge investors are likewise inquiring about possible locations in the country.
“Many have already invested. In fact, lots (for business locations) are already running out in CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon),†said Ferrer, also a board member of the Philippine Economic Zone Authority (PEZA).
He said larger companies could shell out about $300 million, while investments of small ones range from $5 million to $10 million.
“Some of them immediately started (operations). While others, if they want to construct their own buildings, then it will take at least eight months,†he added.
Ferrer said these new investments are expected to generate 200,000 new jobs for this year. Of this total, already 50,000 jobs have been created.
“(Also,) some European countries have started having interests in the Philippines. That’s a good sign they are coming here to put up (businesses). The same with the United States, their investments are not only into electronics but also in other fields like tourism,†he further said.
Ferrer attributed the increasing interest of foreign companies in the country to numerous investment promotion programs undertaken by the government.
He said the better investment climate here, the rising cost in China and the increasing wages in Thailand make the Philippines a competitive investment destination.