Duterte US snub shocks as electronics firms lose millions
Still reeling from the jitters caused by President Duterte’s controversial remarks on the country’s “separation” from the US, semiconductor and electronics firms operating here have put on hold their investment and expansion plans.
According to the Semiconductor and Electronics Industries in the Philippines Inc. (Seipi), some US-linked companies have likewise suffered losses amounting to millions of dollars as an offshoot of the President’s remarks during his state visit in China last month.
Mr. Duterte’s Cabinet has long since clarified the President’s statement, saying it only meant pursuing an independent foreign policy. In several instances, Malacañang’s spokesperson had to decipher the President’s statements that have set off diplomatic alarm bells.
Seipi said Mr. Duterte’s rhetoric has already caused unnecessary apprehension among companies.
“Our industry was affected by our President’s statements in China. Some companies held investments. Others lost significant businesses in the millions of dollars. We are requesting to meet the President to ask for his help to assuage the concerns of US company members and customers,” Seipi president Dan Lachica said in an interview.
He said there would be no “shutdowns” for now, but “we would like to meet with the President so he hears the concerns first hand.”
He said he would request for a “written assurance” if possible, which members can send to their parent firms in the US.
The information technology and business process management (IT-BPM) industry also earlier asked for an audience with Malacañang to clarify its stance with respect to the country’s bilateral relations with the US.
Both industries—the electronics and the IT-BPM—are among the biggest contributors to the local economy. The outsourcing and offshoring industry alone is expected to generate a hefty $25 billion in revenues this year and employ a total of 1.3 million by yearend. By 2022, the industry is seen to contribute close to $40 billion in revenues, and employ a total of 1.8 million full time workers.
Electronic products remained the biggest driver of merchandise trade, accounting for the bulk of the country’s exports and imports in Sept. The semiconductor and electronics industry is expected to post 2 to 5 percent growth in terms of exports this year.
Trade Secretary Ramon M. Lopez earlier assured investors the current business environment remained stable.
“When it comes to economic policy, we are in sync with the US’ trade reform measures, and that’s why in terms of trade and industry, we don’t have any issues. But it’s different when it comes to other policies,” Lopez had said.
