Businessmen find haven in central RP amid rising costs

They might want to listen to some of their fellow entrepreneurs who have invested in the Mactan Economic Zone (MEZ) in the central Philippines.

As with any location, problems exist, but to hear Taiwanese investors tell it, Filipino workers are obedient, loyal and easy to communicate with, and companies benefit from tax breaks, freedom from political interference and a pristine natural environment.

The MEZ, established on Jan. 15, 1979, is one of four government-owned zones under the administration of the Philippine Economic Zone Authority (PEZA). Covering a land area of 150 hectares, it is only 500 meters away from the international airport and 14 kilometers away from a port.

The zone,which began with two tenants in 1980 —TMX Philippines, Inc. and Fairchild Semiconductor — was home to 108 companies employing 49,943 workers as of the end of December, 2007.

Among the 108 companies operating there, 54 percent are Japanese, 16 percent are Filipino and 12 percent are Taiwanese-owned businesses.

The Philippines often trails behind China, Vietnam, Indonesia and India as a “hot” destination for new manufacturing investments, in part because of concerns over labor quality and personal safety, but Taiwanese investors in the MEZ have found Filipino workers and the environment provided by the Philippine government to their liking.

“Filipino workers are optimistic and obey the the instructions of their employers,” said Rain Chien, director of the Corporate Service Division at Metro Wear Inc., in an interview with the Central News Agency last week.

Jacky Chen, general manager of Tong Fang International Limited that opened a factory in the MEZ in 1996 to produce wrist watch dials, also commended Filipino workers as “really loyal to their company.”

“They are also cute. As Taiwanese businessmen here in the Philippines, we always feel respected by them,” said Chen, whose factory had sales of US$4.5 million in 2007.

Echoing Chen, Peter Liao, president and CEO of Headway Caps International Co., Inc., said that Filipinos are not against people of Chinese ancestry.

“On the contrary, people of Chinese origin in the Philippines are respected with dignity,” Liao commented.

Chien, Chen, and Liao agreed that the English skills of Filipino workers was another key advantage compared to their counterparts in Vietnam, making communications between employers and employees much easier.

Ken Yu, a special assistant to the chairman (his father) at Paul-Yu Industrial Corp., a manufacturer and exporter of lamps, window blinds, screens, furniture, and home accessories, said that Filipinos are more open than Taiwanese and Chinese, resulting in more creative designs and products.

Also, “unlike in mainland China where everyone is eager to become a boss, workers in the Philippines are less ambitious,” Yu added.

Aside from the quality of the labor force, the relatively open political environment in the Philippines and the Mactan Economic Zone’s infrastructure have also proven attractive to foreign investors.

Noting that political interference from Chinese authorities has led to an “unstable” investment environment in the mainland, Chen said that investing in the Philippines is less complicated.

“Businesses don’t have to worry about the political issues behind the investment,” he said. “When I was working for our factory in China, I felt extremely uncomfortable when Chinese officials frequently visited my office.

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