By Janina C. Lim, Reporter
TAIWAN-BASED electronics firm New Kinpo Group (NKG) is eyeing to boost its investment in the Philippines to up to $250 million in the next three years.
NKG Chief Executive Officer Simon Shen said the company has currently invested $175 million into the two plants that have been completed and will be operational this year.
“We expect to grow more investment up to like $250 million in the next three years,” Mr. Shen said in an earlier interview with BusinessWorld in Pasay City.
Although the Philippine arm of the multinational firm only accounts for less than a tenth of its global operations, NKG is looking at expanding its share to 11% to 12% this year.
Revenues of its main local unit, the Cal-Comp Technology (Philippines), Inc., stood at $210 million last year. Mr. Shen said the firm is looking to grow the figures to $500 million this year and $700 million in 2019.
Revenue growth is expected to be driven by NKG’s new manufacturing plants.
“We continue to build new factories. We just finished two factories. We continue to build another factory in Lipa. Hopefully, we’ll be able to finish next year, September,” Mr. Shen said.
The firm has not decided which products the plant in Lipa, Batangas will produce once it operates next year.
Aside from Cal-Comp Technology, NKG’s local business includes Kinpo Electronics, Cal-Comp Electronics, and XYZprinting.
NKG manufactures external hard disk drives, network-attached storages, TVs, set-top-boxes, all-in-one PCs, laser printers, electronic keyboards and floor-sweeping robotics, smart home appliances and power supplies.
However, Mr. Shen said the company continues to bring in more products in the country.
Some of the new products the NKG will be introducing in the country are artificial intelligence-engineered robots which are manufactured in Taiwan. The robots can serve as an information-providing assistant that can be installed in hotels, hospitals and malls, among others.
Mr. Shen said that he had talks with the local operator of 7-Eleven and mall giant SM Group, who are both looking at testing these robots in their stores this year.
NKG also creates new technologies and its own product brands such as 3D printers, innovative smart beauty mirrors, artificial intelligence products, design system-on-chips (SOC), and integrated circuits for cloud computing, etc.
The Philippines’ rapidly growing economy, its close proximity to Taiwan, the firm’s headquarters, and its friendly and English-fluent work force, makes the country a viable location to boost business, according to Mr. Shen.
“In 20 years, the Philippines will be very big… as well as the government, politically stable, the Philippines will continue to grow in a fast pace,” he added.
Asked to comment on the proposed second phase of the tax reform package, Mr. Shen said the impact would be quite minimal on NKG, noting that its current incentive package runs through 2024.
“What the Philippines wants to do is they want to be a competitive market. I believe the Philippine government will do smart things for the investors. But even if they change, we will try to do something to continue our business here,” Mr. Shen said.
