The current Taiwanese government’s Southbound policy greatly coincides and matches with the current Philippine government’s foreign policy of friendlier and closer economic cooperation with its Asian neighbours.
Last October 28, 2016, Anvil Business Club participated in the 23rd Joint Meeting of the Chinese-Philippine Business Council (CPBC) and the Philippine-Chinese Business Council (PCBC) in Taipei, Taiwan. The joint meeting included the participation of various business organisations namely: Philippine Chamber of Commerce and Industry (PCCI), Chinese International Economic Cooperation Association (CIECA), Makati Business Club (MBC), Taiwan Economic Cultural Office (TECO), Chinese Filipino Business Club (CFBC), New Taipei City Industrial Association, Ministry of Economic Affairs and Taiwan Chamber of Commerce & Industry in the Philippines, Inc.
The meeting was the climax of the four day event which featured visits and plenary sessions on renewable energy, E-commerce and new energy technology. Leading the way was CPBC and CIECA Chairman, Clement Yang, Ambassador Dr. Gary Song-Huannn Lin, Philippines’ Trade Secretary Ramon Lopez, PCBC Chairman George Siy and PCCI President George Barcelon. The momentous event was aimed at promoting more active economic cooperation between Taiwan and the Philippines. Numerous companies from both countries arrived and attended the event, mostly from the small and medium enterprises (SME) sector.
Taiwan’s New Southbound Policy
Taiwanese President Tsai Ing-wen’s push to pivot to south was aimed at expanding its investment opportunities to its Asian neighbours. Visa application to several ASEAN countries has been simplified, requirements and fees have been waived, encouraging more tourists to explore Taiwan. The trade ministry of Taiwan has encouraged trade associations to actively organise joint meetings with its ASEAN neighbours particularly the Philippines.
Taiwan’s E Commerce and Energy Technology
Taiwan’s strength lies in its advancement in technology in information, agriculture and renewable energy particularly for the SME sector. The plenary sessions featured extensive discussions on the development of E-commerce, new energy saving technology adopted by Sharp Solar Solution, technology sophistication in agriculture and fishery by Grobest Group.
The Philippines as Investment Destination
The Philippines on the other hand, led by DTI Secretary Ramon Lopez and PCCI President George Barcelon, showcased why investors should consider the Philippines. With an average GDP growth of 5.5 to 6.6% for the past 8 years, the rising tiger in Southeast Asia is just about to enter its golden age of infrastructure development. The Duterte administration is firmly resolved in restoring peace and order in the country, increase spending on infrastructures and streamline the cost and process of doing business in the country.
Infrastructure, Tourism and Investment Incentives
The Duterte government is set on increasing the budget for infrastructure spending from 5% to 7% of GDP or about 7 trillion for the next 6 years. Railroads, bridges, airport upgrades and major roads will be developed all over the country that will alleviate the worsening traffic situation and speed up transport of goods and services. The implementation and completion of the projects will encourage tourism development nationwide.
Aside from the focus on eradicating criminality and developing infrastructure, the government has taken bold steps in improving investment climate by reducing corporate income tax and streamlining bureaucracy in business processing for investors. The Philippines can become a solid alternative for industrial locators.
The joint meeting of business councils from both nations provided opportunities for SMEs of both nations to consider expanding trade relations and business partnership with companies in their neighbouring country.
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