Two senators suggested that economic managers should direct American businesses leaving China to consider relocating to the Philippines.
According to Senator Panfilo Lacson Sr., many American and European businesses are leaving China, and it is expected that another Asian country would be their next location. The senator cited that Indonesia was the first to benefit from this, estimating that 27 U.S. factories based in China would transfer to Indonesia.
“This should be the opportunity that we must be grabbing because this is a big company. What a missed opportunity,” Lacson lamented.
Senator Imee Marcos has also previously suggested the same, saying that U.S. businesses transferring a number of its China-based factories to Indonesia confirms a growing economic trend favoring Southeast Asian countries as alternative sites for manufacturing.
The senator and chairperson of the Senate Committee on Economic Affairs is currently pushing for a cut on the Philippines’ 30 per cent corporate income tax to be more competitive with the 20 per cent rate in Vietnam, Thailand, and Indonesia by next year.