DTI urges European companies to invest in Philippine electronics and IT-BPM

In a recent virtual investment roadshow, the Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo urged European investors to venture into Philippine electronics and Information Technology-Business Process Management (IT-BPM), noting that electronics accounted for the bulk or 62% of our exports and amounted to $39.7 billion last year.

The Philippines has about 500 semiconductor and electronics firms that have capacities in electronics manufacturing services and original design manufacturing, among others.

“As for IT-BPM, we are first in the world in voice-related services and second in non-voice services with 13% of the global market share,” said Rodolfo.

Rodolfo stressed that 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 has also recommended investing in the Philippines despite the pandemic, citing the recent enactment of a measure that lowered corporate income tax (CIT).

The Corporate Recovery and Tax Incentives for Enterprises Act, signed into law in March, reduced the CIT to 20% from 30% for domestic corporations that have a net taxable income of ₱5 million and below and total assets of ₱100 million and below effective July 1, 2020. All other local firms and resident foreign companies are imposed with a 25% 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… The nature and quality of investments from European companies and business partnerships formed with our companies have helped move the Philippines up the value chain,” said Lopez.

The DTI added that European companies invested ₱23.4 billion in the Philippines last year and that bilateral trade between the Philippines and Europe reached $13.8 billion last year.

SOURCE: Business World