Philippines Revamps FDI Strategy to Attract Tech Titans

The Philippines is intensifying its efforts to attract foreign direct investment in their technology sector, targeting electronics manufacturing service firms (EMS) and semiconductor manufacturing service companies (SMSCs) from the United States and Japan. 

"Part of our preparations is to aggressively reach out to EMS and SMSC companies from the US and Japan for sustained economic expansion," declared Tereso O. Panga, Director General of the Philippine Economic Zone Authority (PEZA), during an interview with ABS-CBN news channel. 

Peza records showed the US was the country’s third largest source of investments, accounting for 14.82 percent of total investments in economic hubs. 

Highlighting the importance of industry-specific engagement, Panga emphasized the Philippines' participation in the Consumer Electronics Show (CES) 2024 in Las Vegas, Nevada. Showcasing the latest innovations and attracting influential players in the global tech landscape, provided an ideal platform for the Philippines to connect with potential investors. 

"Our sights are set on advanced manufacturing, electric vehicles, and especially AI-driven initiatives, as they hold vast potential for Philippine manufacturing." 

While acknowledging the projected flat growth for electronic exports in 2024, Panga expressed optimism for a rebound in 2025. He emphasized PEZA's ambitious target of P200 billion to P250 billion in investment approvals for 2024, aiming to build on the 25% growth achieved in 2023. 

This strategic focus reflects a shift in the Philippines' FDI strategy. Instead of simply courting generic investments, PEZA is actively targeting high-potential sectors with initiatives like CES 2024 participation. By proactively engaging with industry leaders and showcasing its strengths in these growth areas, the Philippines aims to secure its position as a future-oriented tech hub.