Toy industry seeks gov’t incentives

MANILA, Philippines—The local toy industry is seeking additional incentives from the government, saying the sector has the potential to provide between 300,000 and 400,000 jobs, given the right support environment.

In an interview with reporters on Tuesday, Hansa Toy International Inc. managing director and chief executive Hans Axthelm said that the local toy industry has long been neglected by the government, causing the sector to lag extremely far behind neighbors in the region.

“We need to reorganize and we need government support. We’re lagging behind because we don’t seem to have the initiative (to improve),” he said.

Axthelm noted that in other countries, governments provided a host of fiscal perks to toy manufacturers, including tax breaks for research and development activities and tax deductions for participation in international trade fairs.

Here in the Philippines, however, he said no such perks have been available. The only incentives given to toy makers were those provided by the Philippine Economic Zone Authority, if they happened to be located within ecozones.

If more local players were encouraged to enter the industry and more foreign manufacturers were convinced to come here, he said the local toy industry could have generated already at least 300,000 to 400,000 jobs, most of which would cater to unskilled laborers.

“The Philippines is bilingual and has the most artistic people in Asia. Those are exactly why Hansa decided to locate here. With Filipinos’ creativity and language skill, the Philippines has what it takes to be big in the global toy industry. We should capitalize on these strengths,” he said.

“The government should recognize that our industry can soak up the unemployed unskilled labor pool. The (Department of Trade and Industry) should be the one to lead government efforts,” Axthelm added.

Axthelm said the Philippines might be a fringe market now, but in 10 years it could be a major market. Before, Korea and Taiwan were also fringe markets, but these have become the bigger markets in the region.

Wilbert Novero, vice president for international events at Fairs & More Inc., related that the toy industry was one of the most resilient industries in the world, still chalking up huge revenues amid the global crisis.

He said parents would rather sacrifice than disappoint their children.