THE Philippine Economic Zone Authority (PEZA) said that it is hoping to increase electronics manufacturing services and semiconductor manufacturing services (EMS-SMS) investments in economic zones (ecozones).
In a statement on Thursday, PEZA Director General Tereso O. Panga said the investment promotion agency (IPA) plans to increase the share of EMS-SMS, information technology and business process management (IT-BPM), and American registered business enterprises (RBEs) within its ecozones.
“Undoubtedly, the Philippine economy and electronics industry are on the rise with sustained growth momentum. Even the global electronics industry is projecting 7.5% growth this year, indicating a rosier outlook from its sluggish performance for the past two years,” Mr. Panga said.
“PEZA endeavors to increase further the 32% share of EMS-SMS, the 12% share of IT-BPM, and the 317 American RBEs in total ecozone investments — banking especially on the stronger US-Philippine cooperation and economic ties under the Trump administration,” he added.
He cited the need to seize the opportunities presented by the new US government’s trade policy.
“I highly doubt that a reversal in US policy as regards the Philippines in terms of trade will occur under a Trump administration,” he said, citing the country’s performance, renewed ties between the US and the Philippines, and a looming US-China trade war.
He said improving ease of doing business and the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will make the Philippines a viable for US businesses.
“PEZA will continue to engage, promote, and entice US companies to invest in the country. And for US companies that have made PEZA their home in the Philippines, encourage their expansion in this part of the world,” he said.
“I believe that our long-standing alliance have mutual benefits for both countries, especially in business and trade in the long term,” he added.
In a mission to Las Vegas and San Francisco, PEZA met with IPC (International Association for Electronics Manufacturing), Applied Materials, ASML, Suba Technology, and their suppliers.
PEZA also briefed ON Semicon, Winstron NeWeb Corp., Quintel Technology, Enphase Energy, Inc., Logoline, Valmiz, and LJ1D Consulting on opportunities in the Philippines.
Mr. Panga highlighted the need to address the potential impact of the planned US tariff hikes on the EMS-SMS industry.
These include how the policy will affect Philippine EMS-SMS exports, how the Philippines will benefit from the increased import tariffs on EMS-SMS products from China, Mexico, and Vietnam, and whether US policy will erode the Philippines’ ability to attract more US investment.
“Alternatively, the government can counter the planned import tariff hikes by forging a bilateral free trade agreement with the US and reviving the Generalized System of Preferences Program to allow for greater market access for our commodity exports to the US,” he added.
PEZA hosts 482 EMS-SMS companies that provide critical back-end support to their principal clients in the US. — Justine Irish D. Tabile