05 May 2011

Taiwan investors relocating to RP – MECO

MANILA – Following the resolution of the Taiwan diplomatic row with the Philippines, Taiwanese businessmen, who have been turned off by the stringent labor requirements in China, are seriously considering relocating here their manufacturing facilities from mainland China, the Manila Economic Cultural Office (MECO) said.

MECO chairman Amadeo R. Perez Jr. told reporters Taiwanese businesses engaged in industrial plastics manufacturing with estimated investments of at least $120 million are considering of relocating their factories from China to Subic and Clark Freeport zones for their export-oriented investments.

Perez said that these Taiwanese firms have existing operations in China but engaged in industrial plastics manufacturing and one bed frame and mattresses manufacturer have existing plants in China but are eager to get out of there because of some stringent labor requirements.

Perez said that five four plastics products manufacturers have visited Subic and Clark earlier and one is coming over to visit Batangas and Clark. Another company engaged in bed frames and mattresses production has found a suitable warehouse in Clark that can be converted for his business.

“One project alone can command at least $20 million in investments,” Perez said. For the six projects that would translate to an estimated $120 million worth of prospective investments.

According to Perez, several Taiwanese investors in the mainland have been getting turned off by policy changes in the labor sector.

“Some of the Taiwanese have already gone to Vietnam and Indonesia as these countries are not very choosy because of their high unemployment situation,” he said.

The bed frame and mattresses manufacturer is exporting its products to the EU, Asia and the US while the plastics products manufacturers are producing industrial products for packaging applications and are exporting all over the world.

“They came here to see prospective site. Their requirement is proximity of their operation to international seaport and airport,” he said. Thus, MECO has suggested to the Taiwanese businessmen to consider Subic, Clark, Batangas and Cebu for these areas have access to international ports.

Following the successful resolution of the bilateral issue early this year, Perez said that MECO is implementing a major campaign to attract more Taiwanese investors into the country.

“Our only problem is our high cost of electricity,” Perez said noting that Vietnam and Indonesia could beat the Philippines on this single factor alone. (BCM, Manila Bulletin)