TT: Is there anything you would like to highlight in terms of investment and trade?
Basilio: We’ve just barely scratched the surface of the opportunities for Taiwanese businesses in the Philippines.
One area that we are trying to develop now is in agriculture and fisheries. We have vast tracts of land, and we have people who can work the land. Our own domestic market is substantial. Of course, the attraction is also serving the Taiwanese market and markets in the region.
So we’re looking at fish culture, we’re looking at fruits and vegetables — Taiwan is helping us now develop suitable varieties of hybrid corn to service our own domestic market, but also at some point in time to service the Taiwanese market, because now transport costs have become an important factor. In most cases, they account for a significant part of the added costs of the product itself.
So we think that is one area that is quite promising, especially as fewer people are staying to work the land here in Taiwan.
TT: Do you have a specific example of an investment project or cooperation between a Taiwanese and a Philippine company that stands out in your mind as an example of the opportunities that exist for both countries?
Basilio: I think the most significant investment, in dollar terms, in the last couple of years is Formosa Heavy Industries’ (台朔重工) participation in the power generation sector. They’re working with a Philippine company that specializes in that area, for the central part of the Philippines.
TT: So they’re actually building power plants?
Basilio: Yes, they’re building power plants, and the distribution and operation will be the responsibility of the Philippine partner. Formosa will construct and maintain the power plant.
TT: So how much is that investment worth?
Basilio: The initial investment is about US$700 million.
TT: When did that begin?
Basilio: The agreement was signed last year, and the groundbreaking was this year. We’re looking at another one in Subic, Taiwan Cogen [Taiwan Cogeneration Corp, 台汽電], also working with a Philippine partner, which is a subsidiary of Taipower. Their major customer base there would be the locators in Subic and Hanjin, the shipbuilding yard in Subic.
So we’re inviting more and more Taiwanese companies to participate in the infrastructure, because we want to expose Taiwan to the Philippines and build consciousness. So we’re looking for some flagship project that can be linked to Taiwan.
TT: Are there any upcoming infrastructure projects that you might want to direct Taiwanese companies’ attention towards?
Basilio: There are three areas to look at: shipping ports, operation of airports and also telecoms.
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