Certain foreign electronics companies are investing in the country in phases as they continue to weigh the impact of the U.S. tariff and to ensure their agility once tariff negotiations have been completed and implemented with more certainty.
Ferdinand Ferrer, Philippine Chamber of Commerce and Industry (PCCI) science, technology and innovation committee, told reporters covering the 51st Philippine Business Conference that the U.S. tariff weighs more to some of the electronic investors than the evolving corruption scandal hounding the Philippines.
“The investments now, you know, for example, they will invest… I won’t say a number, but there’s a match,” said Ferrer. He said these firms are investing half instead of their full investment plan as bilateral negotiation with the U.S. is still ongoing.
“They will not give 100 percent, they only give 50 percent, let’s wait for whatever happens. Because there’s so much discussions, tariff-related, not corruption-related. So we have to see what happens in Q1,” he said.
Ferrer expressed confidence that electronics assembly firms are still very interested in the Philippines. “They just have to weigh what is the next move of the U.S. tariff because everybody’s discussing it there, not only our country,” he said.
While the U.S. tariff is more deterrent than corruption for foreign investments to come in, Ferrer, also warned that the balance tips when the Philippine corruption scandal is added in comparison to other countries in the choice of investment location.
“Why would I put here? So now, if we nip the corruption in the bud, if we have actions, believable actions, then it goes back to tariff. That’s why it’s very dynamic, all this happening,” he said.
