The Philippines failed to secure investments to the electronic sector amounting to over $3.6 billion (approx. ₱188.9 billion).
According to the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), five companies that manufacture electronics products opted to go to their sites in China, Thailand and Vietnam for their projects worth $3.6 billion.
SEIPI President Dan Lachica said the Philippines could have had these investment opportunities, along with an estimated 25,000 jobs it would have created were it not for several concerns about government policies.
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In order of priority, Lachica mentioned the incentives rationalization of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law as the primary cause of what he deemed a capital flight.
Lachica also noted how the Fiscal Incentives Review Board has essentially weakened the effectiveness of the Philippine Economic Zone Authority (PEZA). He also enumerated issues on BIR audits, work-from-home policies, and perceptions of corruption that drove investors away.
He said the SEIPI would bring up legislative proposals to address industry concerns.