The Philippine Economic Zone Authority (PEZA) said the government is currently negotiating electricity rates with Samsung Electronics, which will help determine whether South Korean multinationals make more than $1 billion in investments in the Philippines.
“What they want to ensure is the power rate; that's fixed. But the fiscal incentives have been phased out.”
He added: “They have proposed universal tax rates in Vietnam, China and South Korea, and these interest rates will be used as benchmarks. We can estimate the prices we can give based on these benchmarks.”
Asked about the lows of Samsung’s hope for power rates, he said: “They are reasonable; that’s what I can say, we have the ability to provide it.”
He said another government agency was involved in the rate negotiations.
He added: “Their other requirements can be solved through administrative intervention (such as water); we did a problem from our end.”
According to Mr Panga, the new investment will expand Samsung's operations in Laguna's Calamba Premiere Industrial Parkway.
“They have been in Peza since then. They will still produce multi-layer ceramic capacitors (MLCCs).”
He added that the expansion involves multi-story facilities.
The incentives for business recovery and tax incentives dominate the business to maximize the use of business tax incentives to revitalize the economic law (create more), while incentives can be tailored to a P50 billion investment.
By law, Ferdinand R.
According to Mr. Panga, a lot of investments from the United States, South Korea and China have entered the country due to geopolitical events.
Mr Panga noted that Chinese investors' activities surpassed those in Japan in the first four months.
In the four months ended April, PEZA approved investment approvals worth 63.523 billion p6.523 billion shares, an increase of 112.06% over the same period last year.
South Korea was the highest source of investment in the first four months, accounting for 10.45 billion pesos, followed by the United States (2.53 billion Philippine pesos), China (2.17 billion Philippine pesos), Japan (1.66 billion Philippine pesos), Hong Kong (P1.14 billion Philippine pesos) and Singapore (P11.1 billion Philippine pesos).
“We’ve seen this momentum early this year and we want to keep it going,” he said. – Justine Irish D. Table
