Yu, whose company has already opened five factories in the MEZ since starting up in the Philippines in 2001 and intends to expand further in the near future, said that the infrastructure in Mactan “is really favorable to businesses.”

He especially praised the zone’s convenient location since it is in close proximity to an airport and port.

“I still feel that my decision to invest in the MEZ was correct,” Yu emphasized without hesitation.

The financial incentives offered by the Philippine authorities also play a crucial role in luring not only Taiwanese businesses but also other foreign investors to open plants in the Philippines.

According to PEZA regulations, investors are given tax-exempt status for the first five years of their investment and also receive help in maintaining workforce stability.

“The Philippine government reduces our tax burden, which is really helpful to us and highly appreciated by investors, “ said Chien, whose factory produces about 200,000 clothing items a month.

The PEZA guarantees that employees in the economic zones will not strike as long as the employers abide by local regulations, including paying the workers the nationally mandated minimum wage, which stands at approximately the equivalent of NT$200 for an eight hour day.

“There are many strikes in Vietnam, but within the economic zones in the Philippines, strikes will never occur if we follow PEZA regulations,” Liao said.

While Chien, Chen, Liao and Yu all praised the MEZ’s business environment, the four entrepreneurs, who have all lived and worked in China, were particularly enthusiastic about the high quality of life in the area, with its pleasant climate, natural beauty and lack of pollution.

“The sky in China is always gray from the heavy pollution, but in Cebu where Mactan is located, you quickly discover that the sky is always blue with plenty of sunshine,” Yu said. “In the Philippines I spend more time on water sports, which is really good for my health.” Liao said that his Taiwanese plant manager, Anson Wu, enjoyed life in the Philippines so much that he married a Filipino woman.

As with any location, the MEZ has idiosyncrasies that businessmen are forced to cope with if they want to be successful, and the entrepreneurs had some suggestions for those thinking about setting up a factory in the country.

Filipino workers are optimistic and cooperative, the four businessmen agreed, but they also noted that employers have to push the workers because they are really “passive.”

“You have to supervise them even though you have given them instructions,” Chen said. “Also, you cannot scold local workers in front of others because they are highly concerned about face.”

Employers also need to organize social activities, such as birthday parties and outings, for the workers because these events are important to them, Chien and Liao suggested.

Another challenge is the rising Philippine Peso, and the Taiwanese businessmen hoped the government would pay more attention to controlling currency fluctuations and help local companies safeguard their revenues. On balance, however, the investors are happy to have located their factories in the central Philippines and hope to be there for a while.

“I sincerely hope that our investment in the Philippines is a long-term business,” Chen said.

Subscribe to The China Post and save.  Click hereSharePrintEmail

Write a Comment

Enter your comments - 800 characters max

Receive China Post promos

Respond to this email