THE Philippine Economic Zone Authority (PEZA) said it has recorded seven investment pledges amounting to $65 million during its investment mission in Taiwan.
In a statement on Tuesday, PEZA said among the investment pledges are expansion projects from CHIMEI, which it said has proposed the development of Artificial Intelligence (AI)-based solutions and LCD monitors. Another company is Budget Energy Corp., which proposed the project expansion of Solar Energy Development in Hermosa and Subic.
PEZA also reported that YFC-BonEagle International, Inc. has a $40-million extension plan in the next two years.
The agency said some of the investment pledges come from AcBel Polytech Inc. and Yeng Hsing Philippine Branch.
Neotek and Accton Technology Corporation are also exploring investment opportunities in the Philippines through PEZA, with Neotek planning to invest $6 million to 8 million.
Meanwhile, the agency said various companies also expressed “serious interest” during the various business-to-business (B2B) meetings attended by PEZA during the business mission in Taiwan.
PEZA said this includes Asia Optical Co., Inc, a company that is into the scope of guns products. It wants to put up an agro-industrial park with a 5-hectare ecozone area requirement, and with an estimated initial cost of investment at P1 billion.
Meanwhile, the agency said Medtecs International Corporation Limited, a manufacturer of personal protective equipment (PPE), is looking for at least 100ha and other companies such as Cyberpower, a company into car batteries, power bank, UPS.
Haoyung International Co., LTD, a company into green energy; and Huang Lin Machinery Co., LTD, and Giyu Industrial Co., LTD, that are into vertical farming and hydroponics have also expressed “serious interest” in investing in the Philippines.
According to PEZA, the four-day investment mission was in collaboration with the Department of Trade and Industry (DTI)-Philippine Trade and Investment Center (PTIC), the Board of Investments (BOI), Manila Economic and Cultural Office (MECO), Taipei Economic and Cultural Office, and Taiwanese Business Chambers.
For his part, PEZA Officer-in-Charge Tereso O. Panga said, “Not only do we aim to learn from Taiwan, being the seventh biggest economy in Asia and the 20th largest purchasing power parity in the world; we also seek to bring to the country strategic and big-ticket investments that will be vital in our goal of economic growth and development post-pandemic.”
The current head of Peza said the agency aims to attract more investments in Taiwan, particularly in high-technology industries, noting that the Philippines can benefit from the technological advancements of Taiwan.
“We aim to attract more investments in high-technology industries as Taiwan’s economy is driven by a competitive manufacturing sector in the fields of electronics, machinery, petrochemicals, energy, and information and communications technology (ICT) products,” Panga said.
With the “positive” outcome of the investment mission in Taiwan, Panga said PEZA remains bullish on achieving its 6-7 percent investment growth target for the year, taking into account the “firm growth forecasts for 2022 of our
inner ecozone sectors at 10 to 15 percent for [IT and Business Process Association of the Philippines] IBPAP, and 10 percent for [Semiconductor and Electronics Industries in the Philippines Foundation, Inc.] SEIPI.”
As of July 2022, Panga said there are a total of 108 Taiwanese enterprises registered in PEZA, which contributed a total of P32.87 billion of investments, USD 535.527 million of exports, and 46,564 direct jobs.
Among the big-ticket PEZA-registered Taiwanese companies are Sunon Properties, Tong hsing Electronics, Kinpo Electronics and its affiliate company Acbel Polytech.
With the tax incentives in place under the Corporate Recovery and Tax Incentives for Enterprises Act, Panga expressed confidence that “PEZA shall attract and target strategic and high-tech industries from Taiwan that will provide for ecozone product sophistication, export diversification, labor-intensive and high-skilled jobs, knowledge transfer, enhanced local supply chain, and creation of industry clusters.”