Incentives for electronics sector will stay - PGMA
Manila (17 October) -- Citing their enormous contribution to her administration's jobs creation program and to the government's coffers, President Gloria Macapagal-Arroyo assured today leaders of the country's electronics and semiconductor industry of government's "undiminished incentives" in a move to push the Philippines as the hub of electronics manufacturing in the world.
"I assure you that the incentives we give you will not be diminished. Even as government works harder in the domestic business, we have to make sure you have a level playing field in the world market," the President said in her statement at the 8th CEO Forum of the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) held at the Shangri-La Hotel in Makati.
These may not be all fiscal incentives but non-fiscal incentives as well such as infrastructure, power, technology, training and education of workers and the reduction of red tape which are essential for the electronics industry to be competitive in the world market, she added.
"I would like to let you know that we are here for you as you have been here for us and the people you employ," the President said.
The semiconductor and electronics industry in the Philippines has so far been the biggest contributor to the President's program of creating from six to 10 million new jobs by 2010, by providing around 400,000 direct jobs and thousands more of indirect jobs.
The President noted that with the 67 percent increase in investments in the electronics industry from January to July this year, at least 70,000 more new direct jobs will be created.
"Thank you again…," the Chief Executive said.
Investments in the electronics industry rose by 75 percent to $776 million in 2005 from the preceding year's $443 million.
The first electronics company in the country was set up 30 years ago. Today, the industry is composed of some 900 companies that capture 18 percent of electronics exports in the world market and accounts for 67 percent of the total exports of the Philippines.
To strengthen further the export of electronics components, the President has instructed the Department of Transportation and Communications (DOTC) to open the Lipa Airport in Batangas province as an "alternative airport for electronics cargo."
SEIPI president Art Tan said that with the full support of the Arroyo administration and the momentum the industry is experiencing now, the country's goal of $50 billion in exports for the year is possible.
The SEIPI, established in 1984, is the leading and largest organization of foreign and Filipino electronics companies in the country. (PIA-MMIO) [top]