According to James Lee, director of the economic division of the Taipei Economic and Cultural Office, Taiwanese investments to the Philippines will be booming" this year with the current global economic upturn.
Last year, Lee admitted, investments from Taiwan dropped to $50 million from a high of $234.57 million 2002.
Even with the lower investments of $50 million last year, Lee stressed, Taiwan was still the Philippines’ third biggest investor.
"The decline in Taiwanese investments to the Philippines was due to the overall global economic decline as well as the SARS crisis," Lee stressed.
However, trade between the two countries remained healthy, even posting a trade surplus in favor of the Philippines last year, Lee pointed out.
Bilateral trade between Taiwan and the Philippines amounted to $5.4 billion in 2003 with Taiwan exports to the Philippines reaching only $2.3 billion as against Taiwan imports from the Philippines amounting to a much bigger $3.1 billion.
Taiwan emerged as the Philippines fifth biggest trading partner.
Lee said the Philippines must work on improving its infrastructure, lowering utility costs and providing more fiscal incentives, to attract more Taiwanese investments. TECO representative Ambassador Hsin-hsing Wu had earlier revealed that the Philippines only manages to get about two percent of total Taiwanese investments in the ASEAN region including China.
Wu expressed the view that more Taiwanese investments would go to the Philippines if the government is able to solve its peace and order problem, specifically kidnapping.
Likewise, Wu said, government has to improve its infrastructure citing as an example that lack of a high-speed or dedicated highway between Manila and the Subic Freeport where there are some 38 Taiwanese companies operating which account for almost 89 percent of exports emanating from Subic.
Taiwanese businessmen, Wu said, like the Philippines because of its friendly, hospitable and skilled workforce and the similarity in culture and food.