Korean firms led by Phoenix Semiconductor Philippines Corp. (PSPC), a subsidiary of Korean firm SFA Semicon Co. Ltd., is seen pouring an initial $100 million to expand its semiconductor facility in Clark Special Economic Zone that will create more than 1,000 jobs until 2018.
Trade and Industry Secretary Ramon M. Lopez held a business roundtable discussion with some 30 big Korean companies such as Samsung, Hyundai and KEPCO to boost their confidence. The CEO roundtable also complemented the successful investment forum that the Philippine Trade and Investment Center in Korea organized in cooperation with the ASEAN Korean Center.
PSPC, a publicly-listed company at the Philippine Stock Exchange and started operations in Clark in 2011, supplies major electronics products to Samsung Electronics of Korea.
“Their productivity in the Philippines, 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.
According to Lopez PSPC did not want to make public its additional investments but said “My estimate is they will initially add $100 million.”
Other Korean CEOs and high level officials of major Korean companies also mentioned interest to expand existing operations in the Philippines and/or looking for more projects.
The sectors include renewable energy, infrastructure and Public Private Partnership projects, retail and financing, tourism and real estate development, finance and insurance, food/agribusiness.
During the roundtable discussion, Lopez explained the strategic direction of the current Duterte administration and how this will impact on their business plans. He highlighted the trade and industry policy direction and the 10 socio-economic agenda of the government.
Discussions covered trade and industry programs, investment policies, regional development, agriculture and micro small and medium enterprises.
Lopez also answered specific questions on competition and tax reforms, sugar tax, employment policies like contractualization, among others.
“Major Korean companies 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,” he said.
10 December 2016
By Bernie Cahiles-Magkilat
