The Pursuance Of Trabaho Bill Threatens Electronics Industry In The Philippines
TRABAHO BILL – The proposed Trabaho Bill could cause the gradual disappearance of electronics manufacturers in the country.
In a separate report, A formal trade investigation was launched by US into China recently.
Last Thursday, a briefing was held participated by the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi), where they stated their reservations on the 2nd tax reform package.
Danilo Lachica – President of Seipi – revealed the electronics industry had been noticing a “pinch” amid the trade war between US and China. This created a different perspective, from the previous times when they thought the industry cannot be affected by conflicts brought by the trae war.
The current pressure and the constant decline in worldwide demands are the primary concerns of Seipi in the short run.
Meanwhile, Lachica and the rest of the industry worries about the negative results of the impact of the proposed Tax Reform for Attracting Better and High-quality Opportunities or “Trabaho Bill”.
Despite the Bills failure to pass during the 17th Congress’ session, Lachica revealed that some firms decided to divert allotted amount for expansion plans worth $1 billion to something more practical due to the recent tax package.
Lachica also revealed that they are looking for plausible solutions while also watching out for the worst that could happen in his statement:
“I’m not predicting gloom and doom because we’re continuing to talk with our partners in the government to come up with a reasonable solution… But we’re looking at the worst case scenario.”
This is according to an article from Inquirer.
In addition to his statement, he also revealed the possibility of the tech industry in the Philippines falling apart and eventually disappearing if there is no reasonable solution presented.
“If we don’t get a reasonable solution to the Trabaho bill…the biggest industry we have today will dwindle and eventually disappear. That’s the long-term [referring to the impact],” he said.
That is all there is to it, at least for now. We’ll post updates as soon as we got them.