Multinational corporations (MNCs) with a presence in the Philippines are likely to further rationalize their operations due to global economic slowdown and the serious threat of the COVID-19.
This was the forecast of Trade and Industry Secretary Ramon M. Lopez, who saw the trend following the closing by Japanese manufacturer Honda of its production facilities in various countries, including the Philippines. Wells Fargo also announced earlier that it will reduce its IT business in the Philippines.
Lopez said the Philippines, being a small player, should expect a lot of rationalization if firms’ global headquarters are handling the allocation of resources. Companies will maintain production hubs where they are cost-competitive, he added.