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3/F, Grand Ballroom, Section II

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Title: 3/F, Grand Ballroom, Section II


1
(No Transcript)
2
OPPORTUNITIES FOR TAIWANESE INVESTORS IN
PHILIPPINE ECONOMIC ZONES
A Presentation for the
PHILIPPINE INVESTMENT SEMINAR by DR. LILIA B.
DE LIMA PEZA Director General and Undersecretary,
Department of Trade and Industry
3/F, Grand Ballroom, Section II Grand Hyatt
Taipei, Taipei, Taiwan 900 AM, March 27, 2015
3
Philippine Economic Zone Authority (PEZA)
  • Attached to the Department of Trade and Industry
  • Promotes Investments
  • Creates Employment
  • Generates Exports

4
317 Economic Zones Nationwide
68 Industrial and Export Processing Zones
43 IT Parks 166 IT Centers 19 Tourism
Ecozones 2 Medical Tourism Parks 19
Agro-Industrial Parks
As of Jan 2015
5
LOCATOR INVESTMENTS BY NATIONALITY ( 1995 2014 )
22.78 Filipino
15.87 American
29.71 Japanese
10.29 Dutch
7.98 British
3.39 Korean
3.07 Singaporean
1.60 German
0.96 Swiss
4.35 Others
6
LOCATOR INVESTMENTS BY PRODUCT SECTOR ( 1995
2014 )
Information Technology Services
9.78
Metals/Fabricated Metal Products
9.29
Tourism
8.94
Transport (Shipbuilding, Car Parts, Equipment)
6.00
37.45 Electronics / Semiconductors
Electrical Machinery and Apparatus
4.58
Medical, Precision and Optical Instruments
2.43
Medical Tourism
1.31
Rubber and Plastic Products
1.43
Other Manufactures
18.79
7
WHY PHILIPPINES
8
PHILIPPINE STRENGTHS
  • 6.1 GDP Growth, 2nd Highest in Asia in 2014
  • 100 Million Population as of July 27, 2014

9
PHILIPPINE STRENGTHS
Investment Grade Credit Rating
10
PHILIPPINE STRENGTHS
Investment Grade Credit Rating
11
PHILIPPINE STRENGTHS
Investment Grade Credit Rating
12
PHILIPPINE STRENGTHS
Investment Grade Credit Rating
Rating and Investment Information, Inc.
13
PHILIPPINE STRENGTHS
Investment Grade Credit Rating
14
The Filipino Work Force
  • High literacy rate of 94.6
  • English speaking

15
The Filipino Work Force
  • Easy to train
  • Hardworking

16
The Filipino Work Force
  • Very friendly

17
In the I.T. Sector
Filipino Workers are considered Global Knowledge
Workers because they are intelligent and able to
compete at the highest levels among the best in
the world.
18
The Filipino Work Force
1 million Filipinos reach working age every year,
and half of them are college graduates.
19
Foreign Investor-Friendly Policies
  • Basic rights of Investors are guaranteed
  • Right to remit profits
  • Right to pay foreign obligations
  • Right to repatriate investments
  • 100 Foreign ownership of companies

20
STRATEGIC LOCATION
Russia
Canada
Germany
United Kingdom
EUROPE
United States of America
France
Korea
Japan
China
Middle East
Taiwan
Atlantic Ocean
Philippines
Hong Kong
Africa
India
Thailand
Malaysia
South America
Pacific Ocean
Singapore
Indonesia
Australia
New Zealand
21
HOSPITABLE and COMFORTABLE SECOND HOME
Very friendly attitude of Filipinos
(Result of a survey conducted on expatriates in
Asia)
22
Housing at very reasonable rates
(Result of a survey conducted on expatriates in
Asia)
23
International schools for expatriates' children
(Result of a survey conducted on expatriates in
Asia)
24
Best sporting and recreational facilities
(Result of a survey conducted on expatriates in
Asia)
25
World class health services
(Result of a survey conducted on expatriates in
Asia)
26
WHY PEZA
27
Incentives
  • Income Tax Holiday (ITH)
  • 6 to 8 years for pioneer project
  • 4 to 6 years for non-pioneer project
  • After the ITH - Special 5 tax on gross income
    less allowable deductions in lieu of all
    national and local taxes

28
Incentives
  • 3. Tax and duty free importation of capital
    equipment, spare parts, supplies and raw
    materials
  • 4. Domestic sales allowance of up to 30 of
    total sales

29
Incentives
  • Zero Value Added Tax (VAT) Rate on all local
    purchases to include telecommunications, power
    and water bills
  • Exemption from payment of local government taxes
    and fees

30
Incentives
  • Employment of foreign nationals
  • Special visa for foreign investors and immediate
    family members
  • 9. Unequalled service by PEZA

31
THE PEZA BRAND OF SERVICE
32
1. PEZA is a One-Stop Shop
  • Building and Occupancy Permits
  • Import and Export Permits
  • Online Import and Export Procedures and E-Payment
    System

33
  • Special multiple-entry non-immigrant Visa
  • Environment Clearance Certificate
  • Exemption from Local Government Permits and Fees
  • Simplified registration process forms can be
    downloaded from website

34
2. PEZA is a Non-Stop Shop
  • Provides 24 hours a day, 7 days a week of
    continuous service
  • The Director General and other top officials are
    on call 24 hours a day, 7 days a week

35
3. In PEZA, there is
NO RED TAPE
36
3. In PEZA, there is
ONLY RED CARPET TREATMENT
37
4. In PEZA, there is
NO GRAFT NO CORRUPTION
38
PEZA is ISO 90012008 Certified
For all processes, at all levels, in all
offices, nationwide.
39
IFC World Bank cited only PEZA for Best
Practice among Economic Zones worldwide
Under PEZA, the Philippines has shown dramatic
improvements in Investment Climate. End Result
PEZA is a shining example of successful
regulatory reform improving overall investment
climate in the country.
40
Reformist Government
  • Under President Aquinos Daang Matuwid
  • (Straight Path) Policy
  • Good Governance
  • Transparency
  • No Corruption

41
Appreciation of Investment Environments (December
2014) JETRO 2014 Survey of Japanese-Affiliated
Firms in Asia and Oceana
42
Less Linguistic/Communication Problems
()
Source 2014 Survey of Japanese-Affiliated Firms
in Asia and Oceania, JETRO
43
Easy to hire local staff (General
worker/staff/clerk)
()
Source 2014 Survey of Japanese-Affiliated Firms
in Asia and Oceania, JETRO
44
High Quality of Employees (General worker)
()
Source 2014 Survey of Japanese-Affiliated Firms
in Asia and Oceania, JETRO
45
High Employee Retention Rates
()
Source 2014 Survey of Japanese-Affiliated Firms
in Asia and Oceania, JETRO
46
Tax Incentives (Corporate Tax Holidays etc.)
()
Source 2014 Survey of Japanese-Affiliated Firms
in Asia and Oceania, JETRO
47
Number of Strikes/Lockouts
(Unit Number)
Country 2010 2011 2012 2013
China 90 185 382 656
Indonesia 192 196 51 239
Philippines 8 2 2 1
Thailand 3 14 12 11
Vietnam 423 981 468 327
Source China China Labour Bulletin Indonesia
Ministry of Manpower and Transmigration Philippine
s National Conciliation and Mediation
Board Thailand Department of Labour Protection
and Welfare Vietnam Vietnam General
Confederation of Labor
48
TOP CHIPMAKER
8 OUT OF THE WORLDS TOP 20 CHIPMAKERS ARE
OPERATING IN THE PHILIPPINES
Source SEIPI
49
TOP HDD PRODUCER
FOUR OF THE LARGEST HDD PRODUCERS IN THE WORLD
ARE IN THE PHILIPPINES
NEC
Toshiba
Fujitsu
Hitachi
Source SEIPI
50
THE WORLDS TOP ELECTRONICS FIRMS
  • CEBU MITSUMI manufactures
  • computer peripherals and components such
  • as CD-R, CD-RW, optical pick up
  • AMKOR manufactures IC packaging with 400
  • formats, from leadframe to BGA solutions
  • EPSON one of the top 3 terminal printer
    production
  • base of global Epson group, producing its 10
    millionth
  • printer
  • LEXMARK produces 40 million printheads/year
  • CONTINENTAL produces ABS, sensors
  • SUNPOWER produces solar panels

Source SEIPI
51
WITH HOMEGROWN SMS EMS FIRMS
and a cluster of homegrown ODMs time recorder,
AVR, power supplies, alarm systems,
electronic ballasts, testers, GPS tracking,
automated toll collection, others
Notes SMS Semiconductor Manufacturing
Services EMS Electronics Manufacturing
Services ODM Original Design Manufacturing AVR
Automatic Voltage Regulator GPS Global
Positioning System
Source SEIPI
52
Top Economic Zone Investors
TI (Philippines), Inc. Electronics
American/Dutch Taganito HPal Nickel Corp.
Basic Metals Japanese Toshiba Information
Electronics Japanese Tiger Resort
Tourism American/Japan Sunpow
er Philippines Solar Cells
American/Cayman Travellers International
Tourism Filipino Ibiden Philippines
Electronics Japanese Coral Bay Nickel
Corp. Basic Metals Japanese Amkor
Technology Electronics
Singapore/US NXP Semiconductors Electronics
Dutch Canon Business Machines
Electronics Japanese
53
Top Economic Zone Investors
MCE Leisure Corporation Tourism British
Virgin Isl. Epson Precision Electronics
Japanese PASAR Basic Metals
Filipino Rohm Electronics Electronics
Singapore/Jap HGST Philippines Electronics
Dutch/Japanese Samsung Electro-Mech
Electronics Korean Toyota Autoparts
Automotive Japanese St. Lukes Medical
Center Medical Tourism Filipino Tsuneishi
Heavy Ind Shipbuilding Japanese STMicroelec
tronics, Inc. Electronics Swiss
Integrated Micro Electronics British
54
Top Economic Zone Investors
Convergys IT American Panasonic
Precision Electronics
Dutch/Japanese Sureste Properties Tourism
Filipino American Power Electrical Mach
American TDK Philippines Electronics
Japanese Taiyo Yuden Electronics
Japanese Lufthansa Technik Air Transport
German Pilipinas Kao, Inc. Chemical
Products Japanese Terumo Phil Medical
Instrmt Japanese Nidec Philippines
Electronics Japanese Continental Temic
Electronics German
55
Top Economic Zone Investors
Atlantic Gulf Pacific Fabricated
Metal Filipino On Semiconductor Phils.
Electronics American Accenture,
Inc. IT
Dutch Analog Devices
Electronics Dutch Green
Future Innovations Agro-Industrial
Japanese JP Morgan Chase Bank IT
American Teletech IT
American Brother Industries
Electronics Japanese Schweitzer-Ma
udit Agro
American Xerox Business Services IT
Dutch Convergys Phils.
Inc. IT
Dutch House Technology
Electronics Singaporean/Japanese
56
66 Taiwanese Companies in PEZA Economic
Zones (As of Jan 2015)
57
ELECTRONICS AND SEMICON
COMPANIES Tong Hsing Electronics (Philippines),
Inc. Dyna Image Corporation Philippines Kinpo
Electronics (Philippines), Inc. Orient
Semiconductor Electronics Philippines, Inc. Acbel
Polytech Philippines, Inc. Leader Electronics
(Philippine Branch), Inc. MEC Electronics
Philippines Corporation Lakepower Converter,
Inc. High Well Electronics Mfg.
Corporation Ultra-Pak Philippines
Corporation Linksphere Technologies,
Corp FABRICATED METAL PRODUCTS COMPANIES Taihan
Precision Technology (Philippines) Co., Inc. Hor
Sin Metal Corp Vinox Corporation Asam Industries
Inc. Rosario Fasteners Corporation Philake Metal
Corporation SK 10 Corporation


58
MEDICAL, PRECISION AND OPTICAL INSTRUMENTS
COMPANIES Bioteque Medical Phil., Inc. Tong Fang
International, Inc. Asia Scorpio Optics Co., Inc.

WEARING APPAREL, GARMENTS, TEXTILE
COMPANIES Mactan Apparels, Inc. Global Wear
Manufacturing, Inc. Metro Wear Inc. Feeder
Apparel Corporation Pan-Phil Sportswear,
Inc. Palmphil Garments Philippine
Corporation Formosagarment Printing, Inc. Chi
Hsing Hats Caps, Inc. Good Enterprise
Corporation Excellent Texscreeners,
Inc. Philippine Unionlite Industrial
Corporation Better Phils. Apparel, Inc. Mactan
Diamond Embroidery, Inc. Classic Computer
Embroidery, Inc.
59
LEATHER, LUGGAGE, HANDBAGS, FOOTWEAR
COMPANIES Probag Cebu Exports, Inc. St. Jane
International, Inc. Sports Royal, Inc. Headway
Caps International Co., Inc. Bagtrends
International Corporation

RUBBER, PLASTIC, AND PAPER PRODUCTS
COMPANIES Shing Hung Plastics Company,
Inc. Tsuchiya Kogyo (Phils.), Inc. Foxcolor
Tech., Inc. Polaris Mold Fabrication
Corporation Faith Achieve Plastics
Corporation Philbook Consumer Products Inc. Paul
Deco Industrial Corporation FURNITURE AND WOOD
PRODUCTS COMPANIES Apollo Sun Corporation Greenwoo
d Home Décor, Inc. Paul Yu Philippines
Corporation
60
LOGISTICS, FACILITIES, UTILITIES,
RECYCLING COMPANIES Tansunco Properties,
Inc. Globalwear Manufacturing Inc. Formosawide
Industries, Inc. Asia Pacific Energy
Corporation OTKM Services Phils., Inc. TMC Metal
Philippines, Inc. V-Tech Trading Logistics and
Services Corp. Alicia Ann International, Inc.

ELECTRICAL MACHINERY, CHEMICAL PRODUCTS
COMPANIES CSB Battery Co., Ltd. (Philippine
Branch) East Stacker Philippines
Corporation Barys Industrial Corporation J.I.T.
Injection Machinery Philippines Corp. I.T.
COMPANY Xuenn Incorporated
61
AWAITING
YOUR
INVESTMENTS !
62
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