Electronics companies join clamor vs EPIRA changes

The Semiconductors and Electronics Industries in the Philippines Inc. (SEIPI), the largest organization of electronics companies operating in the country, has joined the growing opposition to the proposed changes in the power reform law.

The group said the proposed amendments to the Electric Power Industry Reform Act (EPIRA) will have a negative impact on the economy, particularly on investors’ sentiment.

“We would like to express our serious concerns over the negative consequences of amending EPIRA. We believe that changing the rules at this juncture when power reforms are gathering momentum will dampen the confidence of both local and foreign investors,” SEIPI chairman Arthur Young said in a letter to the House committee on energy chaired by Rep. Juan Miguel Arroyo.

SEIPI’s membership include leading foreign and Filipino global players like Intel, Texas Instruments, Hitachi, Fujitsu, Toshiba, NEC, Philips, Samsung, Analog Devices, Fairchild, Sunpower, Cypress, Lexmark, Amkor Technologies, IMI, Ionics and Psi Technologies.

The electronics industry accounts for over $31 billion or two-thirds of the total Philippine exports of merchandise goods last year; invests an average of over $1 billion annually; directly employs over 450,000 engineers, technicians and operators; and provides the transfer of best global practices on high technology manufacturing to Filipino workers

SEIPI said it shares the sentiment of other foreign groups and businessmen on the adverse repercussion of the proposed amendments to the EPIRA.

“We again write to you, however, in light of the growing concern expressed by the Joint Foreign Chambers in the Philippines, the Philippine Independent Power Producers Association Inc. (PIPPA) and the Private Electric Power Operators Association Inc. (PEPOA) over the proposed amendments to the Electric Power Industry Reform Act of 2001 (EPIRA),” Young stressed.

According to the SEIPI official, the recent successes in PSALM’s privatization program could come to a halt and put the credibility of the Philippine power sector reforms at risk.