PHL on radar of Hong Kong businesses amid rising China costs
THE Hong Kong Trade Development Council (HKTDC) said rising operating costs and wages in China are prompting manufacturers to evaluate countries like the Philippines.
“We’re also looking at the Philippines as a relocation destination for the manufacturers. Factories in China are getting more expensive. So an alternative will be the Philippines,” said Vivienne Chee, a director with HKTDC’s Singapore office.
Ms. Chee said the Philippine’s viability as a manufacturing hub rests on its large English-speaking population of skilled workers and available land for economic zones offering incentives to locators.
Ms. Chee said HKTDC commissioned a study called “The Philippines: The Prospect for Manufacturing Relocation” which noted that upgrades to infrastructure planned by the Philippine government are making the country more viable .
However, the study also noted that wage levels may not be attractive to labor-intensive industries such as garments.
Manufacturing accounts for a quarter of Philippine GDP, led by semiconductors and electronic components.
Ms. Chee said HKTDC hopes to launch more trade exhibits to build more international partnerships for Hong Kong companies.
Last year, trade between Philippine and Hong Kong totaled $13.4 billion, up 23%. The Philippines is Hong Kong’s 12th largest trading partner and 19th largest export market.
HKTDC undertakes about 30 trade exhibitions annually. This year, the first eight covering lighting, electronics, ICT, houseware, home textiles and furnishings, gifts, printing and packaging, as well as medical industries will be held in April and May in Hong Kong. — Janina C. Lim