IT investments pouring into RP

THERE may be a slump in manufacturing investments in the country but foreign investors are looking at the Philippines as their research and development hub. This is on top of the business process outsourcing and IT-related projects which are flocking into the country.
Artemio A. Del Rosario, chairman of the SEIPI (Semiconductor and Electronics Industries in the Philippines Inc.) committee on human resources, said that multinational corporations try to shy away from the high cost of maintaining R&D facilities in highly developed countries.
Del Rosario, who is human resource manager of automotive systems firm Temic Automotive (Philippines) Inc., a local unit of Continental AG of Germany, said the company has expanded in the past year to increase its production capacity.
This time around, Del Rosario said, the company is improving its R&D capability in the country.
Continental has two plants located in Taguig and Calamba, Laguna, all producing automotive electronics products.
Its R&D facility, which is located at its Taguig plant, is already undertaking body electronics, comfort body and security electronics. The improvement in its R&D facility in Taguig is intended to build its capability to handle more sophisticated product development.
“Companies are relocating their R&D into the country because of the high cost of doing this activity in highly developed economies,” Del Rosario said.
Dr. Martin Wadewitz, general manager of Temic Automotive (Philippines) Inc., has confirmed a restructuring move of the German automotive electronics manufacturer.
Wadewitz said that with the global crisis, the company had to rationalize its local operations with the goal of lowering its cost base even as it jacked up its capacity with additional investments over the past year.
“Because of the crisis, we have rationalized our operations and lowered our cost base, making us more competitive for export to Europe and the United States,” said Wadewitz.
Wadewitz said the group has been rationalizing its global operations, relocating its production from high-cost countries to low-cost countries for manufacturing over the long term.