5 Taiwanese firms infuse P432-M fresh investments in Subic

SUBIC BAY FREEPORT – Five Taiwanese locators have infused a total of P432 million in fresh investments in this economic zone, which is expected to entice more foreign investors with the setting up of the Subic-Taiwan Economic Corridor.

Taiwan’s Economic Minister Mei-Yueh Ho has forged a memorandum of agreement (MOA) with the Subic Bay Metropolitan Authority (SBMA) for the establishment of an economic corridor between the special economic zones of Subic Freeport and Kaohsiung County in Taiwan.

SBMA chairman Feliciano Salonga expressed strong confidence that the signing of the agreement would serve as the conduit towards a more active trade and economic alliance between the Philippines and Taiwan.

"Subic Freeport being an economic zone is expected to benefit from this agreement through fresh investment package from Taiwan which will be complemented with lower manufacturing costs of Subic-made products and better tariff arbitration," Salonga told The STAR.

The new investors are Taiwan’s leading producer of auto radiator tank Liankuann Enterprises, gas steamer manufacturer Gei Huan Corp., industrial steel brushes maker Lee Chia Brush, OEM electronic product manufacturer Gigatek Inc. and waste water treatment system maker Kintech Technology Co. Inc.

"The SBMA is looking forward to see the increase investments of Taiwanese firms engaged in manufacturing with the entry of cluster industries that will uplift export production and trading of goods and services in Subic Freeport," SBMA administrator Armand Arreza told The STAR in another interview.

The MOA will contribute to the full development of Subic and Clark as a manufacturing and logistics hub in the Asia-Pacific region.

Arreza disclosed that the five new Taiwanese investors have already signed contracts with SBMA for the building of various manufacturing plants.

He added that the Taiwanese companies would initially employ about 600 highly skilled workers inside the Subic Industrial Park.

The corridor is also envisioned to allow the free movement of goods, human resources and exports. The economic corridor is intended to allow automatic and parallel registration of locators in the special economic zones enjoying similar incentives and benefits.

The benefit of such an arrangement for the Philippines would be more investments from Taiwan, more employment and the transfer of manufacturing technology, specifically optho-electronic technology that involves the manufacture of liquid crystal displays, polymers and semiconductors.

At present, there are about $1.5 billion worth of registered Taiwanese investments in the Philippines.

However, at least two delicate issues would have to be resolved first such as the free movement of Filipino and Taiwanese workers between the special economic zones, and financial transactions.