Taiwan Plus One Strategy Promotes Supply Chain Diversification

The Taiwan Plus One Strategy aims to reduce economic risks and supply chain problems by advising Taiwanese companies to incorporate an additional country, focusing on Southeast Asia, India, and other areas. The Philippines is seen as an attractive choice for investment hub because of the Taiwan Plus One Strategy and New Southbound Policy. 

"With our bigger landmass, natural and human resources, the Philippines is an ideal alternative site for Taiwanese companies which are into domestic and export manufacturing," PEZA Director General Tereso Panga said. "We can very well facilitate the investments, and support the growth of Taiwanese and other global investors, since the Philippines is regarded as one of the best performing economies in the region." 

According to the chief of the Philippine Economic Zone Authority (PEZA), the Philippines stands to benefit further from Taiwan's ongoing efforts to shift its manufacturing market away from China. Launched in 2016, the New Southbound Policy aims to position Taiwan as a key player in strengthening economic collaboration, trade, investments, and cultural interactions with Southeast Asia, Australia, and New Zealand. Taiwanese companies have been implementing these two business strategies.

"We need to capture as well those [multinational corporations] that relocate their export-manufacturing facilities from China to Asean (Association of Southeast Asian Nations)," Panga said, adding that Taiwan not only wants to enhance trade and investment ties, but also to leverage Asea's growing economy.

Citing a recent study, Panga said Asean is the fifth largest economy globally and has become a vital connector in the shifting trade dynamics between the United States and China.

Thus, Panga pointed out, PEZA and other investment promotion agencies can make a bid for their ecozones that can provide a strategic location, effective business ecosystem, and fiscal incentives for investors, especially in light of the Create More law.