Taipei, May 15 (CNA) The head of the Philippine Economic Zone Authority (PEZA) urged Taiwanese businesses Monday to invest in Philippine economic zones and capitalize on their many advantages, including duty-free imports.
Speaking at the 2023 Taiwan-Philippines Investment Forum in Taipei, PEZA Director-General Tereso Panga appealed to Taiwanese companies, particularly exporters, to set up presences in Philippine economic zones, of which there are currently 422.
Noting that Taiwan and the Philippines are at the center of the Asia-Pacific region and separated by short two-hour flights, Panga said the Philippines provided a strategic location in Southeast Asia for Taiwanese businesses.
As many companies are pulling their production out of China, the zones offer expanding companies and investors viable alternatives, Panga said.
He also called on Taiwanese businesses in select industries designated by the Philippine Department of Finance to take advantage of the CREATE Act passed in March 2021 to counter the negative economic effects caused by COVID-19.
The act offers incentives such as income tax holidays of up to 40 years for investments of US$1 billion or more.
The incentives offered by the Philippines, its industrial profile, and its "highly trainable and skilled workforce" make for a strong argument for why Taiwanese businesses should invest there, Panga said.
The PEZA official highlighted recent and upcoming trips by businesspeople made between Taiwan and the Philippines as a sign of promise for future business ties.
Anthony Rivera, the director for commerical affairs at the Philippine Trade & Investment Center in Taipei, will soon accompany a delegation of Taiwanese businesses to the Philippines, which will be the second delegation of its kind from Taiwan since March 6, Panga said.
In October 2022, business groups from the Philippines visited Taiwan and generated investment pledges totaling US$65 million, Panga said, and described PEZA as "bullish" on the future for Taiwanese investments.
Some promising sectors in the Philippines that Taiwanese investors might consider include electric vehicles (EVs), electronics, agro-processing, medical devices, and pharmaceuticals, Panga said.
The Philippines is poised to promote EVs as it has developed a complete ecosystem for EV manufacturing that covers metallurgy, CPUs, sensors, tires, and batteries, he said.
On agro-processing, a robust sector in Taiwan, Panga invited Taiwanese companies to take advantage of the Philippines' rich natural resources, something he said that Taiwan's rubber, plastics and paper products companies could tap into.
Rivera believed the opportunities for Taiwanese investors in the zone would also benefit the Philippines.
"We are confident that the presence of Taiwan companies will not only add to the manufacturing ecosystem of the country, but more so accelerate the science, technology and innovation-driven development of competitive and innovative industries," he said at the event.
