MANILA – The Department of Trade and Industry (DTI) said that they are open to providing additional incentives for businesses that will establish their research and development (R&D) centers in the country to improve the local manufacturing and services sectors.
Incentives will be beneficial especially for the country’s semiconductor and electronics industry.
The agency welcomes any proposal from the private sector with regard to the incentives that should be included in the IPP to further uphold R&D in the country, according to Trade Secretary Gregory L. Domingo.
“For the semiconductor and electronics industry, which is a major growth driver of the economy, it is important that it not only survive but continue to thrive in a highly competitive market. The industry must pursue and manage the shift from legacy products, which currently account for 80 percent of output, to new generation products,” Domingo said during the 13th CEO Forum of the Semiconductor and Electronics Industries in the Philippines Inc. (Seipi).
He added, “To spur innovation or the shift to high value manufacturing, the Board of Investments is focusing investments by affirming fiscal and nonfiscal incentives for R&D including the establishment of research and testing laboratories, centers of excellence and technical, vocational and educational training institutions.”
Meanwhile, Seipi president Dan Lachica said that R&D is critical for various companies in the semiconductor and electronics films.
“The downtrend may continue unless we move up the value chain, and develop new products and technologies that make us better in terms of increasing export levels,” he explained.