DTI to European firms: Invest in PHL electronics and IT-BPM
MAY 4, 20212 MINUTE READ
The Philippines is seeking investments from European firms in electronics and information technology-business process management (IT-BPM), the Department of Trade and Industry (DTI) said.
In a recent virtual investment roadshow, DTI Undersecretary Ceferino Rodolfo urged European investors to venture on said investment areas given their potential business opportunities.
Rodolfo noted that electronics accounted for the bulk or 62 percent of the exports, or $39.7 billion last year.
The Philippines has about 500 semiconductor and electronics firms, which have capacities in electronics manufacturing services and original design manufacturing, among others, he noted.
“As for IT-BPM, we are first in the world in voice-related services, second in non-voice services with 13 percent of the global market share,” Rodolfo said.
The DTI official stressed the country also has become an “alternative destination for low-cost services” in finance and accounting, human resources, IT and software development, engineering services outsourcing, data analytics, procurement and supply chain management.
Trade Secretary Ramon Lopez said it was still a “good time” to invest in the Philippines despite the pandemic, especially with the recent enactment of a measure that lowered corporate income tax (CIT).
The Corporate Recovery and Tax Incentives for Enterprises Act, which was signed into law in March, reduced the CIT to 20 percent from 30 percent for domestic corporations with net taxable income of P5 million and below and have total assets of P100 million and below effective July 1, 2020. All other local firms and resident foreign companies are imposed with 25-percent income tax.
“There is still much room for growth considering the level of consumer demand from respective markets and the supply chains that can be developed from complementary industries … [T]he nature and quality of investments from European companies and business partnerships formed with our companies have helped move the Philippines up the value chain,” Lopez said.
DTI noted that European companies invested P23.4 billion in the Philippines last year. The top European investors include the United Kingdom, the Netherlands and France. Bilateral trade between the Philippines and Europe, meanwhile, reached $13.8 billion last year. Europe is the country’s fifth largest trading partner with exports and imports amounting to $7.3 billion and $6.5 billion, respectively.