The Philippines is trying to lure Hong Kong’s toy manufacturers with tax cuts, seeking to boost an industry that has attracted companies from the U.S. and Japan.
Hong Kong’s toy manufacturers “are seriously considering” relocating and expanding in the Philippines due to rising production costs, the trade department said in a statement.
They can benefit from a plan to lower corporate income tax rate from 30% from 25%, broader production network, and wider access to markets such as Japan and Europe, said Trade Undersecretary Ceferino Rodolfo.
MORE ECONOMY EXPLAINED:
4 Million Filipinos Jobless, Work Hours Get Shorter as Pandemic Rages
Inflation Soars to Highest in 2 Years, Here's What It Means
Inflation Kills Your Savings, Don't Ghost That Financial Adviser Just Yet
Last month, the Southeast Asian nation’s investment board met with the 250-member Toys Manufacturers’ Association of Hong Kong.
The Philippines hosts 125 toy manufacturers, including production sites of Mattel Inc., Bandai Namco Holdings Inc. and Dunlop International Co. Ltd. It exported $176.1 million in toys and games in 2019.
MORE MONEY EXPLAINED:
How to Save Money by Going All Out on Online Banking
How to File an Income Tax Return in the Philippines
©2021 Bloomberg L.P.