The Semiconductor and Electronics Industries of the Philippines Foundation Inc. (SEIPI) has raised before the Department of Trade and Industry (DTI) the challenges faced by the sector: a looming wage increase, additional tax, as well as high logistics costs.
Dan Lachica, SEIPI president, in a text message on Sunday said DTI Secretary Cristina Roque expressed during a meeting on March 20 the department’s strong commitment to growth of the semiconductor and electronics industry in the Philippines, emphasizing the sector’s crucial role in the nation’s economic development said during the meeting, SEIPI also shared the group’s exports outlook.
He said the group expects flat growth this year due to the slow recovery of demand in the global market.
That would mean a recovery from the 6.7 percent decline experienced in 2024 when exports of electronics and semiconductors reached $39.08 billion from $41.91 billion in 2023, based on data from the Philippine Statistics Authority.
The Philippine Exporters Confederation Inc., of which SEIPI is a member, in a February 3 statement opposed a bill passed by the House of Representatives mandating a P200 daily across-the-board wage increase for private sector workers, saying this would be a burden to employers.
Lachica said SEIPI is also concerned over the provision in the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act allowing local government units (LGUs) to pass an ordinance imposing an registered business enterprise (RBE) local tax (RBELT).
The RBELT, based on CREATE MORE, applies to RBEs that enjoy income tax holiday and enhanced deduction at a rate of not more than 2 percent of the RBE‘s gross income. The 2 percent RBELT shall be in lieu of local fees and charges that the LGU imposes, the law said.
Lachica said SEIPI during the meeting with Roque also raised the high cost of logistics.
Exporters like SEIPI members have been pushing for the exemption from the Bureau of Customs’ (BOC) Electronic Tracking of Containerized Cargo (E-TRACC) system which was implemented way back 2020 due to what they say is additional cost for the industry.
The BOC’s website showed E-TRACC enables the real-time monitoring of inland movements of containerized goods using an Information and Communications Technology-enabled system such as the GPS-enabled tracking device to secure its transport to the intended destination.
According to Lachica, Roque during the meeting, echoed the message of President Ferdinand Marcos Jr. that the semiconductor and electronics industry is a national priority.
“DTI is committed to creating a business-friendly environment that attracts high-value investments and fosters innovation. By working closely with SEIPI and industry leaders, we can drive growth, enhance competitiveness, and solidify the Philippines as a prime destination for semiconductor and electronics manufacturing,” Roque said in a Facebook post on March 22.
Roque cited during the meeting with SEIPI’s Board, the Semiconductor and Electronics Roadmap, for which the DTI has commissioned McKinsey as a consultant.
“Our dialogue underscored the need for strategic policies, infrastructure support, and strengthened collaboration to position the Philippines as a premier investment hub for semiconductor and electronics manufacturing,” Roque said in her post.
