Vol. XXI, No. 170 [ Business World Online ]
Tuesday, April 01, 2008 | MANILA, PHILIPPINES
TAIWANESE COMPANIES poured in close to $800 million in investments here last year, with manufacturing and mining companies comprising the bulk, the Manila Economic and Cultural Office (MECO) said yesterday.
It said the Philippines benefited from big-ticket investments totaling $782.3 million or P32.633 billion in 2007.
MECO did not provide figures for 2006 but previous reports said Taiwanese investments reached about $1.3 billion in 2005.
"These investments further boost our economy and help generate more jobs locally," MECO Managing Director and Resident Representative Antonio Basilio said.
Topping the list of investors was Formosa Heavy Industries in Cebu, which committed to pour in $700 million for the 246-megawatt coal-fired plant in Toledo, Cebu and the 140-MW coal-fired plant in La Paz, Iloilo under a joint venture agreement with Global Business Power Corp.
Other major investors include Multi-Tek Fasteners & Parts Manufacturer Corp., which poured in $5 million in initial investments and created about 300 jobs at the Clark Free Port Zone.
The company plans to invest a total of $30 million and generate 800-1,000 jobs over the next five years.
Mega-Tsung Mining Corp., for its part, committed to invest about $6 million to $12 million in Paracale, Camarines Sur, followed by Fwu Kuang Enterprises Co., Ltd. at the Clark Free Port Zone with commitments of about $5 million to $10 million.
Rounding up the list are Tong Lung Metal Industry Corp., which expanded its existing manufacturing plant in Subic with fresh investments of $12 million; Mei Tail Luggage, Inc. with $3.55 million; Taiwan Resibon Abrasive Products Co. Ltd. with fresh investments of $2 million; health care firm Eva Care Group, which set up a $2 million, 100-seat call center in the country to handle hospital administration, customer service and human resource management; RayShine Photonics Co. with $2 million; Medtecs International Corp. Ltd. with $2 million; and South Forest Co. Ltd. with another $2 million.
Philippine Chamber of Commerce and Industry Vice-President George Siy earlier said the Philippines can get a bigger slice of the yearly $100 billion in foreign direct investments from Taiwan to Southeast Asia. The Philippines normally gets Taiwanese investments of only about $1 billion a year, he noted, in contrast to $7 billion for Vietnam.
Government data showed total Taiwanese investments in the Subic Freeport Zone reached $225 million in 2006.
Taiwan is the country’s fifth largest trading partner, with two-way trade amounting to $7.2 billion in 2006. It is also the Philippines’ seventh largest source of foreign investors and fifth largest source of tourists.
Taiwanese businessmen late last year expressed interest in investing in the information and communications technology, energy, construction and tourism industries. Taiwan Economic Affairs Minister Steve Ruey-Long Chen said investors are particularly considering the free ports in Subic and Clark. — Bernardette S. Sto. Domingo
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