MANILA, Philippines – Major Korean investors are keen on making their foray into the country or to expand their existing operations, citing the increasingly favorable Philippine business climate, the country’s Trade chief said.
Among these plans include Shinhan Bank Group’s diversification outside banking and SFA Semicon Co. Ltd.’s multi-million dollar expansion in Clark, Trade Secretary Ramon Lopez said.
“We just recently concluded the investors’ conference followed by investors’ roadshow in Korea to further boost confidence from major Korean companies such as Samsung, Hyundai, Kepco. We highlighted trade and industry policy directions and the socio-economic agenda of the Duterte administration, including the boost in infrastructure development and tax reform initiatives,” he said.
Lopez said the conference gathered over 200 participants from major Korean companies, all of whom expressed interest in investing or expanding their operations in the Philippines.
He said these firms expressed “confidence in the political will of the Duterte leadership in bringing back peace and security, discipline, infrastructure and human capital development, developing innovative and inclusive industries and MSMEs, that will build and protect investments in the Philippines.”
“On the investment forum, participants were mainly from the manufacturing industry in Korea, with special focus on auto parts, electronics, and agribusiness and food processing. Attendance was oversubscribed from the original target of 80 persons,” the trade chief said.
Lopez said he also had a business roundtable with big Korean companies to complement the investment forum.
He said the meeting was attended by around 30 CEOs and high-level officials of major Korean companies.
“They mentioned interest to expand existing operations in Philippines and/or are looking for more projects. The sectors included energy, including renewable energy, infrastructure and private-public partnerships, retail and fast moving consumer goods, tourism and real estate development, finance and insurance, and food and agribusiness,” Lopez said.
“They appreciated the chance to learn more about the strategic direction of the current Duterte administration and how this will impact their business plans. Discussions covered trade and industry programs, investment policies, regional development, agriculture and MSMEs including specific questions on competition and tax reforms, sugar tax, employment policies like contractualization, among others,” he added.
Lopez said Shinhan Bank Group, South Korea’s biggest bank, is considering expanding operations in the Philippines beyond banking “given the strong growth of the Philippine economy and consumer sector.”
Shinhan Bank Manila branch was given the green light by the Bangko Sentral ng Pilipinas to set up shop in the Philippines last year. It commenced operations on Oct. 19, 2015.
The trade chief said he also met with officials of Phoenix Semiconductors Philippines Corp. (PSPC), the local unit of SFA.
“Their productivity in Philippines and better security and economic environment under the Duterte administration encouraged them to consider expanding their Clark operations in a big way that will generate more than 1,000 new jobs from now until 2018,” Lopez said.
Lopez said PSPC did not disclose the investment cost of its planned expansion, but said he reckons the firm will pour in about $100 million for the project.
PSPC, a listed firm in the Philippine Stock Exchange, started operations in Clark in 2011. It supplies electronic products to a major Korean electronics company.
Aside from meeting investors, Lopez said a meeting with his Korean counterpart was also part of the trip.
“On meeting with Korean Minister of Trade Industry and Energy Joo Hyunghwan, we talked of better cooperation in market access for Philippines especially for agriculture products like duck meat, fruits such as mango and banana and vegetables like okra, and also assistance for Philippines in manufacturing development including electric vehicle development,” he said.
“We also discussed various trade negotiations like ASEAN Regional Comprehensive Economic Partnership, Asia-Pacific Economic Cooperation, and changed prospects of Trans-Pacific Partnership,” Lopez added.
Lopez is bound for Japan next week where he has been invited to be a speaker in a Bank of Tokyo event. He is also expected to meet with two to three potential Japanese investors.
10 December 2016
By Richmond Mercurio
