Being “burdensome” as the main reason why Taiwanese firms and investors will likely to choose Vietnam and Indonesia or even Thailand over the Philippines as those markets are more attractive to investors as labor cost on those nation are far more competitive reported by Business Mirror.
Investors find the regulations of the Philippines to be onerous according to an official at Taipei Economic and Cultural Office (TECO) in the Philippines. TECO are the one discussing all advantage and disadvantages of investing to the Philippines by the Taiwanese investors.
The minimum wage in the Philippines remains too high for Taiwanese investors compared to the other mentioned regional economies making other Southeast Asian nations far more competitive for its labor cost. Currently, Metro Manila minimum wage board is at P512 where Vietnam and Indonesia have much lower labor cost.
With several young labor force and high competence in English proficiency this still a very positive sign for Filipino workers, there are still new businesses and other investors entering the country that gives opportunity for local employment.
Taiwanese investments in the Philippines have dropped to P4.2 billion from P10.83 biliion (61% down). Decline of investment include several factors like proposed tax incentives for businesses operating at economic zones. Officials from TECO urged the Philippine government to take advantage of the current Southbound policy of Taiwan.
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