Intel was once regarded as a darling foreign investor in the Philippines. After decades of operation, the company had eventually left. Why do you think that happened? Let us know down below!
Intel Group, like many other Global Powerhouses that once Invested and Set Up Shop in the Philippines- only to Exit in the long run; LEFT because of a multitude of obvious reasons, only a few can be named: . The Marcoses are back in Malacañang- and they re-spell trouble to a continuously betroubled country stemming back from their Martial Lar Rule Era . Organized Corruption - both within Government and Corporate Sector . Support Infrastructure- Critical to Operations such as: - 24/7 Efficient and Reliable Public Transport Infrastructure - Powerplants (Both Renewables and Nuclear) Critical to power up their structures and operations 24/7 - Ease of Accessibility . The Availability, Amenability, Dedication, Enthusiasm, Reliability, and the Knowledgeable Know-how Filipino Workforce critical for Support Operations . Security and Defense from Internal and External Threats * PH- China Tensions . Availability of Raw Materials and Environmentally Safe Means to Source them out . Overall Global Trust on the Philippines as a whole😣
Based sa kwento ng classmate ko na nagtatrabaho sa Intel Philippines at napasama sa Paglipat sa Vietnam, Gusto ng Intel Philippines na huwag isarado ang factory nila sa Philippines. Yan ang unang desesyon ng mga kano at mga pinoy na nasa higher management. Ilang beses nila kinausap ang PEZA at gobyerno para pagbigyan sila at e extend ang mga tax holiday na binigay sa kanila ng pinas noong nagtayo sila ng planta sa pinas. Ilang beses sila nakiusap pero deny palagi ang request nila. Nabalitaan yun ng gobyerno ng Vietnam. Kaya kung ano ang hinihingi ng Intel na pabor sa gobyerno ng pinas, ibinigay yun ng Vietnam at Dinagdagan pa. Mas mahaba na tax holiday at tax deduction. Lahat ng mga equipment ng Intel na dadalhin sa Vietnam walang tariff. Gobyerno na rin ng Vietnam ang nag reserved ng lupa sa Intel at gobyerno din ang nagpatayo ng mga building ng Intel. Bale ang gagawin ng Intel ay dalhin na lng nila ang makina sa Vietnam at papatakbohin na lng. Nakiusap ang gobyerno ng pinas noong nalaman na aalis na ang intel kaso buo na talaga ang loob ng Intel at naka oo na ang intel na lilipat sila sa Vietnam kasi lahat nga hinihingi Intel binigay na ng Vietnam. Pumunta pa nga si gloria arroyo sa factory ng Intel para pakiusapan ang top management at ibibigay na ang hinihingi na mga request ng Intel pero umayaw na ang intel sa pinas. Hindi yan dahil sa taas ng kuryente kasi sobra2x ang kinikita ng intel. Approx 70million ang kuryente ng Intel every month at 46Bilyon ang tax na binibigay sa gobyerno ng pinas taon2x pero lagpas 20bilyon dollars naman kinikita nila. Yung ginawang rason na lng nila nun is dahil sa 2008 financial crisis at bumagsak stocks nila.
Because the US gov is using their US companies as a weapon to force the gov of these countries to dance to their tune n go against China..And if you don't, they will create problems for you like forcing theirvUS mfg to move out n thus creating huge unemployment so as to destabilise the country
I worked in Intel Philippines in the early 2000's. Higher management said that labor costs in Vietnam were cheaper than in the Philippines. The income tax holiday that was offered by General Trias City to foreign investors had also already expired, further increasing operating costs. Later, reports of shipments of finished products being hijacked/stolen while on the way to the Manila airport added to Intel's misery.
Tax holidays are the usual suspect. Only countries with tax and other incentives have semiconductor industries, hence the U.S. putting together the US Chips Act …
my father owns a trucking business that transports raw materials to his clients' warehouse and its true that theft is a huge problem in the Philippines.
The Philippines is a thievery country, I'm an American had items shipped from the USA to the Philippines via DHL, upon arrival in Manila it took 2 weeks for the product to arrive at my apartment, after opening the package I noticed some items missing, the document stated Philippine customs inspection, never trust Filipinos.
One of my colleague now who previously worked there told that there are too many corrupt employee practices. There are some employees that are stealing some intel products and that they are selling those stolen products in the black market
I heard from colleague also one Manager arrested by FBI due to fraud. The manager drives BMW and was arrested on her car. She collapsed while the arrest was made. 😢 I ask my colleague was the manager really corrupt and anwer me YES.
Kahit napakaraming corrupt kaya pa rin yun ng Intel. Kadalasan kasi na binebenta ng mga empleyado yung mga bagsak sa testing at quality pero gumagana pa. Dapat dun gigilingin na ang mag chips na yun at e dispose sa basurahan. Kaso hindi ginigiling ng mga ibang empleyado at binibenta sa May malapit sa cubao at iba pang mall. Katabing company lng nmin yan. Tatawid ka lng ng kalsada Intel na. Yung mga pasado ksi sa testing at quality na mga chips gwardyado yan. Computerize at nakaindividual barcode yan. Simula lumabas ng production area nakavideo yan. Paglumabas ng company mga chips may nakasunod na armored car sa harap at likod ta naka video yan hanggang sa airport.
Kasiraan ng Pilipino ay kasiraan nyo din. Kaya if you don't have anything good to say manahimik na lang. Lalo na sa social media........kaya kapag nag abroad ka nakatatatak din sa iyo yan dahil Pilipino kayo........lagi nyong tandaan yan.
I have a house in the Philippines and my wife was born there, corruption is a huge part. Pay off politicians and hire friends and family who don’t want to work is a large cost of doing business in the Philippines, plus they don’t think about tomorrow it is about what can I get today. I seen this when my father in law opened a business and relatives stole what they could as soon as the store started growing.
because when new power plants are established many so called protesters block the construction. we are taught is schools that constructing hydro power plants is bad
Yes, the 3 island-based nations have the highest electricity, Singapore being anything near Philippines' electricity costs is insanity, considering how tiny it is, and how few people live there to suck up those resources, and Japan has tons of US presence there to dampen the blow of any electricity costs they would have.
My wife use towork at INTEL Philippines. When Intel left the Philippines, she lost her job and becoz of her age, she can no longer get a well paid job. Til Now, she is still jobless. A huge impact to our family cause by intel pullout.
This is a structural issue. I would not even consider an investment in the Philippines. Unfortunately people are so poor that victimhood justifies corruption. Even votes are bought by the highest bidder How can you take seriously a democracy when the electorate will self harm their interest for a handful of peso??? Unfortunately, Philippines is a basket case confirmed by the eye watering number of overseas workers!!
2 things this happened, first is because of Filipino attitude at work. Filipinos when they became more complacent, got used at work or working for long in the company they become lazy or demanding, not to mention the mismanagements of Filipino managers. Second is the rampant underground operations such as stealing, pilferage, blackmarkettering and the worse is spilling company secrets. Not only foreign but even some local companies experience these in the Philippines.
I agree although not everyone. However, it only takes one bad tomato to spoil a basket of tomatoes. Unfortunately, the good ones don't have enough moral courage to speak up let alone do something to stop these bad employees ripping of the company. Eventually, the company has had enough and they either close or move to another country. As a result, everyone suffers. Both good and bad employees lose their jobs. The governments both national and local lose one source of tax revenues. The SSS loses contributions from laid-off employees to support the retirees. The businesses that support this company, suppliers, landlord, etc. lose business. Also, the small businesses such restaurants or carinderia that set-up shops around this company lose their business, too.
I worked with two U.S. companies supplying Intel plant in Makati and I've seen how the Makati plant grow. I also know personally the Filipino GM then. Intel problem started when they moved to Cavite, and if rumors are true about pilferages, that is probably one reason. Another I think is that foreign executives hates the daily commutes they are making to go in and out of Gen Trias. I know that Intel at their own expense even sent traffic enforcers of Gen M. Alvarez, and Gen Trias for training in Cebu by CITOM.
I guess the location was also a factor. Gen Trias is really far from Makati. Laguna Technopark would have been the better location. But Intel can always move their equipment if they wanted to and transfer to Laguna Technopark. I worked at Intel Cavite before and the reason why Intel Philippines closed was because the tax holiday was expiring and the Philippine government doesn't want to extend the tax holiday. So Intel Philippines decided to just close their operation in the Philippines.
The Philippines is the poor boy who should have been rich. Here is a nation that has an established University before Harvard, the first national airlines in Asia, along with telecommunication company. Prior to the 1970's only Japan had a longer life expectancy, GDP in Asia, Although there has been some progress over the past 6 years it has fallen behind to Thailand, Vietnam and Malaysia. Some serious change needs to take place. Instead of sending workers abroad an effort to keep the brightest and most ambitious to stay should be looked into.
I have been living in the Philippines for a few years and find this video and the comments to be enlightening. Many corporations can be lured away with monetary incentives and some nations like China and Vietnam have the resources to do this.
@@philmcleod111USA is NOT moving to India, thats all media fluff sponsored by US Gov. 3000 US companies just left India to go to China. US companies number outsource hub is Mexico due to shipping cost & tariffs. Im in business & manufacturing, the data speaks for themselves. The US media lies too much
I was deployed in the Philippines once and worked for 3 years in a private co., the corruption is not only in the government level but widely accepted in private companies... In a meeting, managers are casually discussing under the table deals as if it was some kind of badge honor to prove their loyalty to management. Small business owners are delayed with the payment of their services, and they couldn't sue the larger companies because they don't have money to get good lawyers. There was an independent service provider who lost her house because she loaned from the bank expecting the company would pay her on time. I just couldn't accept the way they run things, eventually I quit work and went home to JP.
one of the reasons is politicians and government employees is asking for money in exchange of of having a permission to put a business in their respective towns
my father worked for the general trias government for almost two decades, while he is not sure why Intel left but he said most likely there the rumors of organized crime of stealing expensive metals happening there.
To those saying it was because the company was in crisis during the recession, Intel wouldn't have built a new facility in Vietnam while pulling out of the Philippines if they were in trouble financially.
That is what I think still happened though - the recession! Even here there were a lot of companies doing a lot of layoffs! I think, Philippines simply became too expensive for them again. So Vietnam, became just more attractive for cost cutting as it's simply even more cheaper to have operations there than the Philippines..
@@gwapakaayobabe Don't you know that Vietnam's GDP per capita has surpassed The Philippines GDP per capita. Your argument is invalid. It's just more efficient to operate in Vietnam
As others have previously commented, worker/manager culture, pilferage and outright theft likely were an issue. The Navy base at Subic suffered constantly from theft and pilferage during its entire stay in the country. Receiving quality and timely contract work for ships was hit and miss - if palms were greased (cigarettes, coffee, booze) work was acceptable. Without the greased palms the work was incomplete, substandard or barely acceptable. Many were the times seeing a pickup loaded with pilfered or stolen items being chased by Base Police toward the main gate where the Filipino gate guards would wave the perpetrators on through out into Olongapo. The Japanese tried operating a large facility at the north end of Subic Bay in the late '70s to early '80s - they also left rather quickly due to these same problems.
The Philippines has a careless attitude towards foreigners and investors. Invest here and you have cheap labor but handouts and money here and there adds up. Also if they leave they will just let them and not care. US Military was 5% of gdp and the govt said bye
I have a friend who used to work there in Cavite. I went there occassionally and he disclosed that Intel can not stop syndicate operations . They forcibly get products to sell in the black market of course for a cheaper price. That loss was being added to the cost of production/operation and made it harder to compete with the black market.
I had been thinking about this for quite sometime. Intel moved to China, FedEx moved to China. China could have lured these companies with lots of benefits and Philippines is the victim! The Chinese knew that they can somehow acquire the expertise and build their own industry which happened!
Philippinos who work for Intel was corrupt. Also makes no difference if its China that acquire the industry. Both China and Philippine was corrupt. Now is this also not Intel's fault? Yes. Intel should have told the phillippine govt to crack down on the corruption. But then the govt itself is corrupt.
Soon they will regret it as china is just trying to get any infos etc they can get to US, no wonder why Trump cannot be fooled by these Greedy Demons and hated them.
I remember before going into the factory I had to wear the ESD suit, shoes, hair cap, gloves and goggles. Then there is a long walk and security check. When I was inside I realized that I forgot something in the cubicle and had to go back and do it all over again. Lost a good half hour. Hahaha.
It's electrical cost. Computer chips are produced by automated machines that use lots of electricity. Philippines needs to turn on the nuclear power plant in Bataan if they want to lower electricity cost.
Thats an old power plant. They now have fusion energy and it will cost billions of dollars not pesos to re-start. I work for utility in the US and we are closing nuclear power plants coz of limited place to store spent fuel and more renewables are coming online.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
@@bayareatanders Why, are Filipino scientists not sophisticated enough? Our businessmen should learn repeat customers. Most business are one deal only. I have not heard any study on Hydro electric power. Wind turbines and Solar panels. Many people are Brainwashed to love the leader, just like Mao, very few support a different idea.
I'm in the US. I can tell based on my experience with Philippines and Vietnamese that people from Vietnam work A LOT harder and would do more to improve themselves than those from Philippines. The same kind of tenants who rent my apartments, the Vietnamese tend to live frugally and ended up buying their homes way sooner than those from Philippines, who would stay for many years, buying many luxury cars, and just "be happy" about this. I love them as tenants as they are less likely to get every opportunity to save and make money and leave, but I wouldn't want to hire them as employees.
Oh but you can!!! In deed if you are investing then that's exactly what you do. The Philippines is not a fit country for foreign investment other than perhaps cheap labour, English speaking call centre and AI will be the end of that!!! Obviously there hard workers in the Philippines.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
@@jonteknu Companies in technoparks can have 100% foreign ownership ever since. Intel Philippines was a wholly owned company of Intel Corp. No Filipino partners needed.
The political instability and corruption must be the one of the end products of the presidential system. It should be shifted to a parliamentary one where it can easily wipe out corrupt people.
Just wondering why an image of the Malaysian Intel building (with car parking lots) is used instead....can see a stop sign with 'Berhenti' word (a malay word)... was there no available image for the factory in the Philippines?
But the current administration is serious in transforming the PH to upper middle income economy. A lot of massive multi billion dollars infrastucture constructions are going on nationwide. Everyone must support the gov't if we want change to happen.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles..
In the Philippines it takes a week just to get a paper clip due to very old process methods i can only imagine what a large company like Intel go through just to get the Philippines government to legally get things process. Probably months
Excuse me aren't all humans have these kind of characteristics? After all you have been given freewill by God and I doubt that your country is much better than us.
I remember that the 2008 financial crises are so severe that even the Japanese MNC where I work, which have never retrench any staff for the pass 40 years need to retrench 20% of the staff because the customer orders drop so rapidly. The Japanese MNC also need to close one of the production line building to save maintenance cost. Many other cost cutting measures need to implement immediately to reduce loss because the company is still in the red after so many cost cutting measures. Therefore, I am not surprise that Intel close down the Philippines factories since there are so many better alternative location and the main objective is to cut cost to save the company bottom line.
The labor force was getting old and costly while in Vietnam was young and cheap. The other reason is the stealing practice of some of the employees. I've worked also in a Semiconductor company in the Quality/Reliability area. Some of the units (chips) used in the Reliability testing could be very tempting for others to steal if there were black market available like Intel products.
Wrong. The very reason today why investors are not coming in is simply because a Marcos is again the president. The entire international community simply DO NOT trust the Marcoses for very obvious reasons
@@guestonearth1274wanna argue this but its so true... Filipinos always complain about corrupt politicians but they do it themselves everyday in their jobs and even towards their friends and family members. They use kindness and so called filipino hospitality as a facade for their opportunistic and greedy practices.
Tapos ung mga kababayan (asa sa ayuda) natin puru sisi sa gobyerno, e tayo tayo lang din nmn naghalal ng polpolitiko nayan. Wala na sa gobyerno ang mali, nasa mga mamamayan na mismo. Masaket pero totoo
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
Company like this enjoys tax free set up for 10 years or more.. just tax the workers and voila after 10 years of operation they are subject to tax.. so find someplace who offer same practice..
Not possible to pass. Our Constitution itself needs to be changed for it to pass. Consti says that no domestic corporation can be owned by more than 40% foreign nationals (60-40 rule)
I think one is the high cost of electricity, two custom corruption, three political stability and three people there who are working robbing the gold used in production of chips.. even though it's one of the very strict and secured plant i have ever entered to..
I worked at Intel Philippines before. They closed because the government doesn't want to extend the tax holiday given to Intel Philippines. Such a bad decision by the government.
Don't you think it could be the rampant and widely known Gov't corruption in the Phils. that caused Intel to leave and moved on to other Asian countries? The Philippines could have been very successful and progressive and could have lifted all its citizens from poverty if only they have honest public officials throughout its Government - both on its local and national level.
@@TITOFROG1 Intel has been in the country for decades already. Besides, corruption is everywhere. China is a very corrupt country but the investors didn't really shy away from China. A lot of anecdotes from Japanese executives saying that you need a big amount of grease money to be able to open a business in China.
It was one of the big losses for the Philippines. A multinational ice cream company is about to leave the country by the end of the year, so it will be another casualty for the Philippine market. It may be because of certain issues like corruption, bureaucracy, economic restrictions situated in the 60/40 rule, and so on. Most of our people are in the lower class, so most can't afford that ice cream made by a multinational company because of high prices, so it makes sense to exit the country. The exodus of MNCs would bring losses of decent opportunities to our people and it would create "brain drain" to overseas which would bring detrimental results in the long run.
If you ever been to the Philippines then you know that brain drain has been happening for decades now if not centuries. The people you have left a morons and lazy. Not to mention corrupt and dishonest. That country has a lot of problems and most if not all of them lead back to the people. The government is corrupt and the people are dumb and lazy. Tough combination to beat.
They should start expanding into other areas of the Philippines away from the greater Metro Manila plus areas where vehicle traffic is constantly terrible. Naturally, manufacturing facilities age just as the workforce, and as many an entrepreneur knows, very often it's easier and more cost effective to build and start a new facility than upgrade and maintain a new one.
It's sad to hear this. As I recall, my uncle's startup power business back in the 70's, Intel was one of the few customers that were keeping them alive. No matter what the reason is, it's a big loss to the country for they stayed through thick and thin.
To setup and operate advance semi conductor industry, computer electronic plant, febricate need a low rate power cost, lower wage cost and efficiency of power supply. And important also to good quality of water supply
Not POLITICAL instability........It's the recession that hits the U.S. in 2008. When they entered the Philippines there's already political instability.
But the current administration is serious in transforming the PH to upper middle income economy. A lot of massive multi billion dollars infrastucture constructions are going on nationwide. Everyone must support the gov't if we want change to happen.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles..
Not just INTEL but a lot of foreign investors left and moved to vietnam and china. Its because of our high cost of labor compared to some other countries, and also we have a lot of national and local holidays which could delay productions.
@@reynaldodizon6563you don't need to merge with Malaysia to have Chinese to move to the Philippines. They will move themselves, especially from China, to conquer your country, just waiting for the right time 😂
China's labor cost was rising fast but Intel didn't close their plants in China. So labor cost is not the issue. The real reason was the tax holiday of Intel Philippines was expiring and the Philippine government didn't want to extend the tax holiday.
Many reasons. Corruption. No more incentives. Traffic. Electricity cost. Etc. But at the end of the day, the Philippines did not see that Intel was contributing a significant value add to the local economy. While Intel export revenue was indeed high, imported materials accounted for over 95% of the exported value so there was really not much value added. The Pentium was made abroad and all that was done in the Philippines was installing the Pentium in the processor package. So there was no real economic reason for the Philippines to fight to keep Intel in the country. In the end, Intel was not really missed. Slightly before and long after Intel left, the Philippines experienced a long period of consistent strong economic growth that was only broken by the pandemic. During the post Intel period, the Philippines had one of the longest periods of high growth rates in Southeast Asia. It still is growing. So in the end, Intel left because they could not sell the benefits of staying to the Philippine government. And so Intel could not get enough concessions to mitigate all the negative factors.
I seem to think that Western companies ignore the moral hazards of investing in countries like China that don’t share their democratic ideals, and think only of the profits and returns to shareholders (thus, lower costs like low wages and electricity costs). Why not invest in countries like the Philippines whose people share Western ideals?
Corruption is so high, the workers are not educated, lazy and incompetent. High costs of doing business. Not worth the money and hassle when you got countries like Vietnam and Thailand making huge strides in their economy.
@KKK Revolution the difference is the Chinese are highly educated and very motivated. They don’t stand around all day talking crap and doing nothing like Filipinos do. They also don’t wasted their time with nonsense jobs like in the Philippines. If Filipinos focused on what it takes to actually get stuff instead of sitting around gossiping all day then they would quite literally rule the world.
Reasons why Hitech companies do not enter PH, heard this from a friend who is well versed in the electronics industry in PH prior to covid. Foreign investors for this sector require a certain ratio of PHD graduates in Sciences in relation to population and PH is falling way back compared to other countries. To remedy this the govt thru the DOST is offering Masterals and PHD education to anybody interested (scholarship) the only requirement is that the student can not leave the Philippines for 2 years ( I think) after graduation.
If they close other overseas ventures, that would be logical if they bring global crisis as a reason. But if they close one venture, and start building in their neighboring country, then it must be something else.,, opening new venture in new country will cost them more, if they really in the crisis, they will not gonna do that..,
All foreign investments in any countries cannot depend on these investors to stay due to sentimental values or due to historical relationships. They only go to the cheapest places. In order to stay competitive, countries need to start preparing to go up the industry "food chain" to e.g. make chips or design chips. But this is very challenging and needs long term strategy and government support. It's not just the Philippines, many countries are stuck in this middle income dilemma.
I was an Electrical Engineer from the Philippines. Now Registered Nurse here in Canada. It was my pride that made me chose Engineering over Nursing but regret it deeply. If you are student and want to succeed, take Nursing instead and the future is brighter.
Another reason if you agree with me or not is because of the restriction of the ownership of FDI or foreign direct investment in the Philippines as according to the current constitution that only 40% of their ownership and the rest of 60% should have a Filipino ownership for multinational companies like Intel and the company couldn't expand their market here due to the said restriction. And no wonder my country is one of the lowest FDI market in Asia.
They have to invest in Indonesia if they want to survive, but we won't do it, there are still many semiconductor companies that will invest in Indonesia, I hope Intel doesn't lose its market in microcomputer chips too. that's the only reason they are because of electricity, because many high-tech factories in Indonesia, Thailand, Malaysia & vietnam😅
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles...
1. In the beginning God created the heaven and the earth. 2. And the earth was without form, and void; and darkness was upon the face of the deep. And the Spirit of God moved upon the face of the waters. 3. And God said, Let there be light: and there was light.
It's all about money, these companies go to countries where they can make more money. If it is not, why will Intel build factories overseas instead of USA? Most of the manufacturing & fabrication was transferred to China and Vietnam, where there are no labour laws, where the govt assures smooth operation no matter what. It's all about money!!
It's about location as well. Why pay millions for shipping per year when it's cheaper to produce the item locally for its customers. That's the reason why China is so popular because it's a huge market
In My opinion,n, they close the plant bcoz of high labor cost not the recession, in fact, that year, Intel bought an animation company in the UK for 1 biliion dollars.
Its not true that ph had political instability. The fact ph is the most stable politics in the region , constantly at the hand of oligarch. Who ever the president, their high politician governor etc come from same families.
@@alice_agogo many countries have oligarch, but are they blocking the poor to advancing. Ph politics systemically make people stay poor and exploited. Thats why NPA stay alive right, because they have desperated people gave them supports , same as latin america.
It was just an assembly and packaging place, not a wafer fab, which is the heart of semiconductor manufacturing. Nowadays a wafer fab is a $10 billion investment.
Extremely difficult to start business in Philippines, due to so much unnecessary rubbish nonsense useless paper work, and even for filipinos trying to go overseas to work, there are so much unnecessary rubbish nonsense useless paper work eg POEA , created by POLO and Philippines gov , making it extremely hard for Philippines people to find jobs overseas
That's the definition of excessive bureaucracy, which is one of the long-standing ongoing issues in the Philippines. About going overseas, that sounds like the aspiring workers are almost depriving of finding and landing better opportunities elsewhere, so the Pinoys are trying to escape that "ProudToBePinoy" craphole.
Sana kung may business na ganun huwag sana nakawin mga materials as I read the comments below. Naniniwala ako na may ninanakaw dahil may kaibigan akong nag audit sa isang business at silay nag inventory meron daw itinatago ng mga incharge ng stocks na hindi alam ng manager owner. Sana honest ang mga employees.
Many of the comments here are very sensible and mostly likely correct, too. But a 'national' self-recrimination is only self-defeating afterall, companies will leave and relocate for whatever gives them the most return regardless of a host country's favors and dedication. Sometimes it's just plain business decisions. And if there are lessons to be learned, then just do better from now on.
To understand why, you have to look at the situation from Intels point of view and not from a filipino point of view. Of course losing a major high tech employer sucked for the Philippines and its people, no question. But a company runs on margins, and those margins can become very slim pretty fast when multiple issues arise. If the financial crisis didn't happen, Intel would probably have stayed at least longer in the country. But in the long run it's not economically viable for a tech giant to stay in the country with the highest electricity cost in southeast asia. And maybe the most important factor is the political instability. I'm not talking about the Philippines being a banana republic that changes dictators every year, that's obviously not the case. But politics in the Philippines has created a huge amount of redundant bureaucracy creating more cost and delays in production. While a domestic company does not face the same amount of bureaucracy and also is prepared to endure those delays, a global conglomerate is not. Global supply chains are highly responsive to delays, as the shortage of goods in many areas during Covid proved. In the long run that means unbearable cost for a global player, even if the local labor is educated and comparatively cheap. Politics and their bureaucracy is the foreign investment killer number 1 in the Philippines and many other countries around the globe.
THIEVES INSIDE!! Corruption to the fullest..i remember working there and notice all their workStation pc were padlock coz thieves inside stealing the cpu chips and employees stealing laptops and sell outside syndicates
I work in a competing company in Cavite. I have heard news then of corruption both of management and employees, politics, etc. plus stealing of shipments while on travel. I believe these are part of it. It could have stayed I think if only of these issues is not present. Even if the China impact, high cost of electricity and labor are big factors.
see it was President Marcos in those days that invited the US Texas Instruments and Intel to put up a Manufacturing Plant in The Philippines in 1974.. Electricity and water are not yet that too expensive during those times.It was during the Cory Admin when we experience rotational Brown outs and Power and Water Shortage that added to their Cost in maintaining the Plant.
The main reason I see why most of the big companies invested in our country is because politics here is so great that even companies are being politicized plus we can not discount the fact that corruption was also great.
@@underworldringside big NO there is always a leader who can curb and solve all these problems we have, this had been caused by previous administration for their personal interests and not for our country and its people.
European and western countries want to shift nuclear to renewable energy. The common problem is the same in other countries, is hazard waste.. the only way to dispose hazardous waste is to dig underground. No other option. Thats the problem of nuclear plant.. even USA have many place to dump the waste still many people dont want nuclear plant..
@@alice_agogo Regarding Indonesia's nuclear number 1 in Asean, do you realize... where do you come from, how come you don't know... humans from planet mars know?🤣🤣🤣
Intel is owned by a Jewish businessman. He's the type who seeks the cheapest place to do business according to former union employees of their plant in the US who were involved in a strike and were laid-off when operations were transferred to the Philippines and elsewhere in Asia. Semiconductor assembly is a very labor intensive undertaking and quite naturally one shouldn't be surprised at all if eventually they also move in the future if wage growth becomes too fast in Vietnam. Something similar is happening in China where it's engineers are training their Indian & Vietnamese counterparts to transfer production knowhow for Apple's decision to move I-Phone production lines to those countries. But this is not to discount other factors such as pressure from US stockholders, the high power cost, labor unrest etc. prevailing in the Philippines at the time.
I live in the Philippines and the electricity cost here is so astronomically high not to mention a very poor instrastructure and a very corrupt government.
The electricity is no higher than any other neighboring island nation, there is actually only 1, that is Singapore, and their electricity is more expensive than Philippines'. Island locations will more than likely, always have a higher electricity cost, renewable energy on island nations is a challenge.What do you exactly mean by, "high labor costs?" The minimum wage in the country is low for a lot of the population honestly, so the Intel sweatshops were all of a sudden requiring higher pay for employees?
New Intel factory in Dalian, China much lower cost than the General Trias factory. The Makati plant was also very old with no room to expand further. There was also apparently poor local management. High electricity costs would be fine, if returns and possibility for expansion are guaranteed in a location. But that's still on the lower rung of likely causes.
In the PI there are up to 17 national holidays each year, along with a 13 month salary where in December of each year workers are paid an extra months pay. This is not merit based it is just the law of the land.
Actually the Philippines has a higher electricity cost than Singapore The Philippines is 2nd next to japan with higher electricity cost in Asia.. this is one of the reasons why the Philippines skip the manufacturing industry and choose the outsourcing services...if only it can have it both. It would be great.
I was there on the ground when intel plant relocated to gen.tri. and when it closed down, we had to deal with uneasy contentment with corrupt lgu with their promotion family values as well as their family members who wreak havoc on site. incompetent logistics partners and expiring tax holiday that was vaguely resemble as guidelines rather than an actual rule. but the good thing that came out of intels case was an improvement for future electronic investment and curbing the nepotism and greed of lgu in the future.
No, leftist communist ideology is the problem of the Philippines. Has been since Cory’s time. Filipinos will keep going backwards. All the capitalists are fleeing the socialist democratic system - even foreign banks are going faster than they are coming.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles...
Intel exited because of the clause that associated in the Philippine constitution that states foreign investments that has a manufacturing plant cannot be owned 100% by any foreigners. It should be 60/40... And it's product will not be allowed to be sold in the local market... Thank you 1987 cory constitution for this
Seems I kicked the hornets nest. The point I was trying to make was that at one time, long ago the PI was one of the "better off" nations in SE Asia. Over time it has failed to keep pace with it's neighbors and if you have traveled to those nations it is apparent. Infrastructure, manufacturing exports of goods. The PI main export is people, who by sending back remittances provides nearly 20% of the nations income. The leadership, education and a ruling class is for some reason is. holding the nation back. Over the holidays the city where I live here in Mindanao is inundated with women and children on the streets looking for handouts. I am sure one can argue this is a global occurrence these days
More pronounced in Phil. Agree with the government doing little to invest in education. Foreign nvestment in labor will not happen in Phillipinnes with it's current labor laws and over regulation in addition to challenges with supply chain given it's proximity to other countries.
@@meowco69 u r right . I’m a foreigner I feel that also . Firstly high cost of electric . And some workers use of labor law be weapons and blackmailing companies ….
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly public on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around. Sectors covered by the bill: Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
I wonder how the employees got paid. Also so wonder how much profit Intel was making off the employees. If the pay was not great but the talent of the employees was high that could lead to problems. What I observed is that when you pay Filipinos well they won’t screw you. However when I see companies pay Filipinos poorly and treat them like trash they get trash results. Every Filipino I have ever paid treated me well and never screwed me over. I’m not saying corruption isnt bad here but from a business perspective if you treat them well usually good results come from that. The only time I have been ripped off is when doing business with other Filipino companies. However for hire an employee I never got screwed but I pay them very well.
This makes sense. The pinoys are just as honorable as other people. But when you are very poor, survival is more important, so it is tempting to steal.
It was a political move. The Cavite location actually had lower direct cost than China and Malaysia. China required an in country plant to sell products in China so expansion had to move there.
Intel was once regarded as a darling foreign investor in the Philippines. After decades of operation, the company had eventually left. Why do you think that happened? Let us know down below!
This is really sad
Intel Group, like many other Global Powerhouses that once Invested and Set Up Shop in the Philippines- only to Exit in the long run; LEFT because of a multitude of obvious reasons, only a few can be named:
. The Marcoses are back in Malacañang- and they re-spell trouble to a continuously betroubled country stemming back from their Martial Lar Rule Era
. Organized Corruption - both within Government and Corporate Sector
. Support Infrastructure- Critical to Operations such as:
- 24/7 Efficient and Reliable Public Transport Infrastructure
- Powerplants (Both Renewables and Nuclear) Critical to power up their structures and operations 24/7
- Ease of Accessibility
. The Availability, Amenability, Dedication, Enthusiasm, Reliability, and the Knowledgeable Know-how Filipino Workforce critical for Support Operations
. Security and Defense from Internal and External Threats
* PH- China Tensions
. Availability of Raw Materials and Environmentally Safe Means to Source them out
. Overall Global Trust on the Philippines as a whole😣
@@agronomist98 yes it is.
Based sa kwento ng classmate ko na nagtatrabaho sa Intel Philippines at napasama sa Paglipat sa Vietnam, Gusto ng Intel Philippines na huwag isarado ang factory nila sa Philippines. Yan ang unang desesyon ng mga kano at mga pinoy na nasa higher management. Ilang beses nila kinausap ang PEZA at gobyerno para pagbigyan sila at e extend ang mga tax holiday na binigay sa kanila ng pinas noong nagtayo sila ng planta sa pinas. Ilang beses sila nakiusap pero deny palagi ang request nila. Nabalitaan yun ng gobyerno ng Vietnam. Kaya kung ano ang hinihingi ng Intel na pabor sa gobyerno ng pinas, ibinigay yun ng Vietnam at Dinagdagan pa. Mas mahaba na tax holiday at tax deduction. Lahat ng mga equipment ng Intel na dadalhin sa Vietnam walang tariff. Gobyerno na rin ng Vietnam ang nag reserved ng lupa sa Intel at gobyerno din ang nagpatayo ng mga building ng Intel. Bale ang gagawin ng Intel ay dalhin na lng nila ang makina sa Vietnam at papatakbohin na lng. Nakiusap ang gobyerno ng pinas noong nalaman na aalis na ang intel kaso buo na talaga ang loob ng Intel at naka oo na ang intel na lilipat sila sa Vietnam kasi lahat nga hinihingi Intel binigay na ng Vietnam. Pumunta pa nga si gloria arroyo sa factory ng Intel para pakiusapan ang top management at ibibigay na ang hinihingi na mga request ng Intel pero umayaw na ang intel sa pinas. Hindi yan dahil sa taas ng kuryente kasi sobra2x ang kinikita ng intel. Approx 70million ang kuryente ng Intel every month at 46Bilyon ang tax na binibigay sa gobyerno ng pinas taon2x pero lagpas 20bilyon dollars naman kinikita nila. Yung ginawang rason na lng nila nun is dahil sa 2008 financial crisis at bumagsak stocks nila.
Because the US gov is using their US companies as a weapon to force the gov of these countries to dance to their tune n go against China..And if you don't, they will create problems for you like forcing theirvUS mfg to move out n thus creating huge unemployment so as to destabilise the country
I worked in Intel Philippines in the early 2000's. Higher management said that labor costs in Vietnam were cheaper than in the Philippines. The income tax holiday that was offered by General Trias City to foreign investors had also already expired, further increasing operating costs. Later, reports of shipments of finished products being hijacked/stolen while on the way to the Manila airport added to Intel's misery.
Tax holidays are the usual suspect. Only countries with tax and other incentives have semiconductor industries, hence the U.S. putting together the US Chips Act …
Theft was a big problem. I like how you gloss over that little tidbit of information.
my father owns a trucking business that transports raw materials to his clients' warehouse and its true that theft is a huge problem in the Philippines.
The Philippines is a thievery country, I'm an American had items shipped from the USA to the Philippines via DHL, upon arrival in Manila it took 2 weeks for the product to arrive at my apartment, after opening the package I noticed some items missing, the document stated Philippine customs inspection, never trust Filipinos.
@@btsmochimi7924why Philippines have so many theft? Because we don't have death penalty.
One of my colleague now who previously worked there told that there are too many corrupt employee practices. There are some employees that are stealing some intel products and that they are selling those stolen products in the black market
Can confirm this same story was the problem.
The same way I think.
I heard from colleague also one Manager arrested by FBI due to fraud. The manager drives BMW and was arrested on her car. She collapsed while the arrest was made. 😢
I ask my colleague was the manager really corrupt and anwer me YES.
Kahit napakaraming corrupt kaya pa rin yun ng Intel. Kadalasan kasi na binebenta ng mga empleyado yung mga bagsak sa testing at quality pero gumagana pa. Dapat dun gigilingin na ang mag chips na yun at e dispose sa basurahan. Kaso hindi ginigiling ng mga ibang empleyado at binibenta sa May malapit sa cubao at iba pang mall. Katabing company lng nmin yan. Tatawid ka lng ng kalsada Intel na. Yung mga pasado ksi sa testing at quality na mga chips gwardyado yan. Computerize at nakaindividual barcode yan. Simula lumabas ng production area nakavideo yan. Paglumabas ng company mga chips may nakasunod na armored car sa harap at likod ta naka video yan hanggang sa airport.
Kasiraan ng Pilipino ay kasiraan nyo din. Kaya if you don't have anything good to say manahimik na lang. Lalo na sa social media........kaya kapag nag abroad ka nakatatatak din sa iyo yan dahil Pilipino kayo........lagi nyong tandaan yan.
I have a house in the Philippines and my wife was born there, corruption is a huge part. Pay off politicians and hire friends and family who don’t want to work is a large cost of doing business in the Philippines, plus they don’t think about tomorrow it is about what can I get today. I seen this when my father in law opened a business and relatives stole what they could as soon as the store started growing.
Corruption is everywhere
@@dantesalazar7805yes but not like here. The country claims to be christians but they are just catholics.
Same experience here!
Corruption was the reason why intel left the Phil.
I also think that corruption is one reason.
Electricity cost in the Philippines is actually the HIGHEST in South East Asia.
because when new power plants are established many so called protesters block the construction. we are taught is schools that constructing hydro power plants is bad
during 2000's???
@@markpaulpangan7618 since time immemorial
Yes, the 3 island-based nations have the highest electricity, Singapore being anything near Philippines' electricity costs is insanity, considering how tiny it is, and how few people live there to suck up those resources, and Japan has tons of US presence there to dampen the blow of any electricity costs they would have.
@@jaredgalvin
Since Cory.
My wife use towork at INTEL Philippines. When Intel left the Philippines, she lost her job and becoz of her age, she can no longer get a well paid job. Til Now, she is still jobless. A huge impact to our family cause by intel pullout.
Sympathies to you.
Many people here who want to work could be put to work, but the ageism in the job sector prevents that.
Blame the corrupt Philippine government.
1 year later since you're comment I hope you and your wife are doing okay. 🙏
This is a structural issue. I would not even consider an investment in the Philippines. Unfortunately people are so poor that victimhood justifies corruption. Even votes are bought by the highest bidder How can you take seriously a democracy when the electorate will self harm their interest for a handful of peso??? Unfortunately, Philippines is a basket case confirmed by the eye watering number of overseas workers!!
2 things this happened, first is because of Filipino attitude at work. Filipinos when they became more complacent, got used at work or working for long in the company they become lazy or demanding, not to mention the mismanagements of Filipino managers. Second is the rampant underground operations such as stealing, pilferage, blackmarkettering and the worse is spilling company secrets. Not only foreign but even some local companies experience these in the Philippines.
yes your statement is true, it hurts but it's real
Im a Filipino and I totally agree. Disgusting lowly mentality of the majority. There’s a 3rd reason though, the unappetizing government policies.
So correct! They are like criminals no discipline, no honor and their mindset is insane.
I agree although not everyone. However, it only takes one bad tomato to spoil a basket of tomatoes. Unfortunately, the good ones don't have enough moral courage to speak up let alone do something to stop these bad employees ripping of the company. Eventually, the company has had enough and they either close or move to another country. As a result, everyone suffers. Both good and bad employees lose their jobs. The governments both national and local lose one source of tax revenues. The SSS loses contributions from laid-off employees to support the retirees. The businesses that support this company, suppliers, landlord, etc. lose business. Also, the small businesses such restaurants or carinderia that set-up shops around this company lose their business, too.
My dear, we industrialized from workers to Service Providers. And intel can not compete with Taiwan and Samsung
We lost a lot of investments to Vietnam. As hardworking as we are known abroad. We are also known to be theives and opportunists. So much so here. 😁
Typical.
true. thieves and opportunists. kakalungkot.
Yes, many pinays maids steal from their masters.
People learn from Politicians 😑
In South East Asia, Philippines has the most thieves and scammers..
I worked with two U.S. companies supplying Intel plant in Makati and I've seen how the Makati plant grow. I also know personally the Filipino GM then. Intel problem started when they moved to Cavite, and if rumors are true about pilferages, that is probably one reason. Another I think is that foreign executives hates the daily commutes they are making to go in and out of Gen Trias. I know that Intel at their own expense even sent traffic enforcers of Gen M. Alvarez, and Gen Trias for training in Cebu by CITOM.
I guess the location was also a factor. Gen Trias is really far from Makati. Laguna Technopark would have been the better location. But Intel can always move their equipment if they wanted to and transfer to Laguna Technopark. I worked at Intel Cavite before and the reason why Intel Philippines closed was because the tax holiday was expiring and the Philippine government doesn't want to extend the tax holiday. So Intel Philippines decided to just close their operation in the Philippines.
Intel was overtaken by TSMC, Samsung and others. Intel's move has little to do with the Philippines.
@@petercabauatan767in short, there's TOO MANY factors that lead to it.
The Philippines is the poor boy who should have been rich. Here is a nation that has an established University before Harvard, the first national airlines in Asia, along with telecommunication company.
Prior to the 1970's only Japan had a longer life expectancy, GDP in Asia, Although there has been some progress over the past 6 years it has fallen behind to Thailand, Vietnam and Malaysia. Some serious change needs to take place. Instead of sending workers abroad an effort to keep the brightest and most ambitious to stay should be looked into.
hard to cure corruption
1960 GDP Japan 🇯🇵 🗾 $45 billion PH 🇵🇭 $7 billion UK 🇬🇧 $75 billion. USA 🇺🇸 $542 billion
The Philippines is rotten to the core, specially the politicians.
Never mind we all die after no need to be rich just go ahead and leave happily coz we don't know our time comes
Sing this broken tune to the corrupt leaders and politicians of the Philippines.
I have been living in the Philippines for a few years and find this video and the comments to be enlightening. Many corporations can be lured away with monetary incentives and some nations like China and Vietnam have the resources to do this.
Any business built only on tax incentives and not built on enduring and self reinforcing advantages will eventually move to the next cheap bidder …..
@@alesh2275 I agree , why is the US moving to India,
@@philmcleod111USA is NOT moving to India, thats all media fluff sponsored by US Gov. 3000 US companies just left India to go to China. US companies number outsource hub is Mexico due to shipping cost & tariffs. Im in business & manufacturing, the data speaks for themselves. The US media lies too much
Because the Philippines is a basket case. They don't even respect themselves. So it's difficult to sympathise.
I was deployed in the Philippines once and worked for 3 years in a private co., the corruption is not only in the government level but widely accepted in private companies... In a meeting, managers are casually discussing under the table deals as if it was some kind of badge honor to prove their loyalty to management. Small business owners are delayed with the payment of their services, and they couldn't sue the larger companies because they don't have money to get good lawyers. There was an independent service provider who lost her house because she loaned from the bank expecting the company would pay her on time. I just couldn't accept the way they run things, eventually I quit work and went home to JP.
Intel's factory here in the Philippines is just next to our town. It was a big company back then in 90's here in Cavite until it closed down later on.
China business flourishing in Cavite...
@@gemmalee3032 druga baby drugs even the barangay s are involved /protector specially near or around paliparan cavite
one of the reasons is politicians and government employees is asking for money in exchange of of having a permission to put a business in their respective towns
di ui. ang totoo diyan yong planta ng intel na misplaced ng mga empleyado sa bahay nila.
my father worked for the general trias government for almost two decades, while he is not sure why Intel left but he said most likely there the rumors of organized crime of stealing expensive metals happening there.
To those saying it was because the company was in crisis during the recession, Intel wouldn't have built a new facility in Vietnam while pulling out of the Philippines if they were in trouble financially.
Vietnamese more organized.
@@gemmalee3032 not more organized, just less corrupt. Phillippinos were more organized....in organized crimes.
That is what I think still happened though - the recession! Even here there were a lot of companies doing a lot of layoffs! I think, Philippines simply became too expensive for them again. So Vietnam, became just more attractive for cost cutting as it's simply even more cheaper to have operations there than the Philippines..
@@zlonewolf 🤣
@@gwapakaayobabe Don't you know that Vietnam's GDP per capita has surpassed The Philippines GDP per capita. Your argument is invalid. It's just more efficient to operate in Vietnam
People, human resources, open economic policies, convenient location, working culture, Vietnam has all the factors to attract Intel.
Tax, land , electricity. Vietnam has it all.
As others have previously commented, worker/manager culture, pilferage and outright theft likely were an issue. The Navy base at Subic suffered constantly from theft and pilferage during its entire stay in the country. Receiving quality and timely contract work for ships was hit and miss - if palms were greased (cigarettes, coffee, booze) work was acceptable. Without the greased palms the work was incomplete, substandard or barely acceptable. Many were the times seeing a pickup loaded with pilfered or stolen items being chased by Base Police toward the main gate where the Filipino gate guards would wave the perpetrators on through out into Olongapo. The Japanese tried operating a large facility at the north end of Subic Bay in the late '70s to early '80s - they also left rather quickly due to these same problems.
The photo used to represent the Intel Philippines, is the Malaysia Kulim Intel plant in actual 🤣
At which minute?
Diam diam jelah
Shhh diam diam jer
While Intel , Apple and Telsa is investing in Malaysia
The Philippines has a careless attitude towards foreigners and investors. Invest here and you have cheap labor but handouts and money here and there adds up. Also if they leave they will just let them and not care. US Military was 5% of gdp and the govt said bye
I have a friend who used to work there in Cavite. I went there occassionally and he disclosed that Intel can not stop syndicate operations . They forcibly get products to sell in the black market of course for a cheaper price. That loss was being added to the cost of production/operation and made it harder to compete with the black market.
yeah this aswell
The philippines has a lot of thieves, despite being a christian country.
I known gangs memeber that would hijack truck delivery in Austin Texas in mid 1990s.
I had been thinking about this for quite sometime. Intel moved to China, FedEx moved to China.
China could have lured these companies with lots of benefits and Philippines is the victim!
The Chinese knew that they can somehow acquire the expertise and build their own industry which happened!
Philippinos who work for Intel was corrupt. Also makes no difference if its China that acquire the industry. Both China and Philippine was corrupt. Now is this also not Intel's fault? Yes. Intel should have told the phillippine govt to crack down on the corruption. But then the govt itself is corrupt.
You got it..
Soon they will regret it as china is just trying to get any infos etc they can get to US, no wonder why Trump cannot be fooled by these Greedy Demons and hated them.
They are slowly moving out of China.
@@ntabile that doesn't matter anymore china already gained all the experience to make semi conductors.
I remember before going into the factory I had to wear the ESD suit, shoes, hair cap, gloves and goggles. Then there is a long walk and security check. When I was inside I realized that I forgot something in the cubicle and had to go back and do it all over again. Lost a good half hour. Hahaha.
It's electrical cost. Computer chips are produced by automated machines that use lots of electricity. Philippines needs to turn on the nuclear power plant in Bataan if they want to lower electricity cost.
Thats an old power plant. They now have fusion energy and it will cost billions of dollars not pesos to re-start. I work for utility in the US and we are closing nuclear power plants coz of limited place to store spent fuel and more renewables are coming online.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
@@bayareatanders Why, are Filipino scientists not sophisticated enough? Our businessmen should learn repeat customers. Most business are one deal only. I have not heard any study on Hydro electric power. Wind turbines and Solar panels. Many people are Brainwashed to love the leader, just like Mao, very few support a different idea.
I'm in the US. I can tell based on my experience with Philippines and Vietnamese that people from Vietnam work A LOT harder and would do more to improve themselves than those from Philippines. The same kind of tenants who rent my apartments, the Vietnamese tend to live frugally and ended up buying their homes way sooner than those from Philippines, who would stay for many years, buying many luxury cars, and just "be happy" about this. I love them as tenants as they are less likely to get every opportunity to save and make money and leave, but I wouldn't want to hire them as employees.
True but you can’t generalize
Oh but you can!!! In deed if you are investing then that's exactly what you do. The Philippines is not a fit country for foreign investment other than perhaps cheap labour, English speaking call centre and AI will be the end of that!!! Obviously there hard workers in the Philippines.
intel's entrance was a sign of economic progress, but the instability of the government, corruption, and recession, it was closed down.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
Maybe, Intel loves authoritarian governments.
@@jonteknu Companies in technoparks can have 100% foreign ownership ever since. Intel Philippines was a wholly owned company of Intel Corp. No Filipino partners needed.
The political instability and corruption must be the one of the end products of the presidential system. It should be shifted to a parliamentary one where it can easily wipe out corrupt people.
@@jonteknubarely not enough to attract investors,unless it's those already trading in Philippines or connected to the oligarchs.
Worked in Intel since the 1984!!. We lost INtel because of greed of LGU's!!!
Taxes are very high in the philippines. Plus B.I.R. abuse of audit and L.A. forced a lot of companies to close.
BIR abuse of audit … Correct
Just wondering why an image of the Malaysian Intel building (with car parking lots) is used instead....can see a stop sign with 'Berhenti' word (a malay word)... was there no available image for the factory in the Philippines?
This video was after the chose down. So they could not photograph any factory with "Intel" sign any more in the Philippines.
I agree polital instability. Most politician are only after the money that will made their bank account to a higher number of digits.
Short term VS long term mind
Corrupt, incompetent government.
Absolutely correct
Don’t just limit that statement to the government. The level of incompetence you will have to endure in the Philippines is overwhelming at times.
But the current administration is serious in transforming the PH to upper middle income economy. A lot of massive multi billion dollars infrastucture constructions are going on nationwide. Everyone must support the gov't if we want change to happen.
Greedy politics lalo na ng mawala sa gobyerno si macoy kaya nagsilayas mga yan
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles..
In the Philippines it takes a week just to get a paper clip due to very old process methods i can only imagine what a large company like Intel go through just to get the Philippines government to legally get things process. Probably months
Need pa maglagay sa customs at LGUs.
Intel promoted a Filipino plant manager to a superstar status sometime during the early years. He turned out to be dishonest, a huge disappointment.
Stealing and dishonesty are entrenched in filipino culture, and are hard to change.
Excuse me aren't all humans have these kind of characteristics? After all you have been given freewill by God and I doubt that your country is much better than us.
it is due to the competitive mindset of the nation
High energy cost is the real problem in the Philippines until now.
I remember that the 2008 financial crises are so severe that even the Japanese MNC where I work, which have never retrench any staff for the pass 40 years need to retrench 20% of the staff because the customer orders drop so rapidly. The Japanese MNC also need to close one of the production line building to save maintenance cost. Many other cost cutting measures need to implement immediately to reduce loss because the company is still in the red after so many cost cutting measures. Therefore, I am not surprise that Intel close down the Philippines factories since there are so many better alternative location and the main objective is to cut cost to save the company bottom line.
The labor force was getting old and costly while in Vietnam was young and cheap. The other reason is the stealing practice of some of the employees. I've worked also in a Semiconductor company in the Quality/Reliability area. Some of the units (chips) used in the Reliability testing could be very tempting for others to steal if there were black market available like Intel products.
I've not seen numbers but I suspect Philippines has a very high birth rate and low mean age.
The Philippines, no matter how much PBBM work to attract investors, will not succeed if Filipinos do not change from within themselves first.
Wrong. The very reason today why investors are not coming in is simply because a Marcos is again the president. The entire international community simply DO NOT trust the Marcoses for very obvious reasons
it's really hard transforming from monkey to human being
@@guestonearth1274wanna argue this but its so true... Filipinos always complain about corrupt politicians but they do it themselves everyday in their jobs and even towards their friends and family members. They use kindness and so called filipino hospitality as a facade for their opportunistic and greedy practices.
So so true po
Tapos ung mga kababayan (asa sa ayuda) natin puru sisi sa gobyerno, e tayo tayo lang din nmn naghalal ng polpolitiko nayan. Wala na sa gobyerno ang mali, nasa mga mamamayan na mismo. Masaket pero totoo
Im a former employee and the yields of the Manila plant was always one of the highest in the Asia region.
Kapit bahay lng kita. Analog ako. Tsaka may mga kilala din ako sa intel dati. Yung iba service ng Epson
Grabe kc corruption jan.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
Company like this enjoys tax free set up for 10 years or more.. just tax the workers and voila after 10 years of operation they are subject to tax.. so find someplace who offer same practice..
Not possible to pass. Our Constitution itself needs to be changed for it to pass. Consti says that no domestic corporation can be owned by more than 40% foreign nationals (60-40 rule)
Damn, I used to drive past that facility in General Trias many years ago.
Brgy Javalera
I think one is the high cost of electricity, two custom corruption, three political stability and three people there who are working robbing the gold used in production of chips.. even though it's one of the very strict and secured plant i have ever entered to..
I worked at Intel Philippines before. They closed because the government doesn't want to extend the tax holiday given to Intel Philippines. Such a bad decision by the government.
Don't you think it could be the rampant and widely known Gov't corruption in the Phils. that caused Intel to leave and moved on to other Asian countries? The Philippines could have been very successful and progressive and could have lifted all its citizens from poverty if only they have honest public officials throughout its Government - both on its local and national level.
@@TITOFROG1 Intel has been in the country for decades already. Besides, corruption is everywhere. China is a very corrupt country but the investors didn't really shy away from China. A lot of anecdotes from Japanese executives saying that you need a big amount of grease money to be able to open a business in China.
It was one of the big losses for the Philippines. A multinational ice cream company is about to leave the country by the end of the year, so it will be another casualty for the Philippine market. It may be because of certain issues like corruption, bureaucracy, economic restrictions situated in the 60/40 rule, and so on. Most of our people are in the lower class, so most can't afford that ice cream made by a multinational company because of high prices, so it makes sense to exit the country. The exodus of MNCs would bring losses of decent opportunities to our people and it would create "brain drain" to overseas which would bring detrimental results in the long run.
If you ever been to the Philippines then you know that brain drain has been happening for decades now if not centuries. The people you have left a morons and lazy. Not to mention corrupt and dishonest. That country has a lot of problems and most if not all of them lead back to the people. The government is corrupt and the people are dumb and lazy. Tough combination to beat.
They should start expanding into other areas of the Philippines away from the greater Metro Manila plus areas where vehicle traffic is constantly terrible. Naturally, manufacturing facilities age just as the workforce, and as many an entrepreneur knows, very often it's easier and more cost effective to build and start a new facility than upgrade and maintain a new one.
Access to ports and the airport is important to manufacturers.
It's sad to hear this. As I recall, my uncle's startup power business back in the 70's, Intel was one of the few customers that were keeping them alive. No matter what the reason is, it's a big loss to the country for they stayed through thick and thin.
That is very unfortunate indeed
To setup and operate advance semi conductor industry, computer electronic plant, febricate need a low rate power cost, lower wage cost and efficiency of power supply. And important also to good quality of water supply
Not POLITICAL instability........It's the recession that hits the U.S. in 2008. When they entered the Philippines there's already political instability.
Just because of this comment now I'll definitely think it was because of political instability lol
But the current administration is serious in transforming the PH to upper middle income economy. A lot of massive multi billion dollars infrastucture constructions are going on nationwide. Everyone must support the gov't if we want change to happen.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
@@guanciale8815 I wish he is right though but I agree with you.
The pic you use 1:15 is actually an Intel Malaysia plant..
shhhhhhh keep underrated ok✌️
Political instability, high cost of electricity, and labor cost compare to other Asian countries why Intel exited the Philippines.
I work at INTEL 1997 May- 2008 ,i was assign at CV1 TESTING DEPARTMENT .
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles..
Not just INTEL but a lot of foreign investors left and moved to vietnam and china. Its because of our high cost of labor compared to some other countries, and also we have a lot of national and local holidays which could delay productions.
I would appreciated if malaysia and phillipines merge to be one country one day.
So that we can share the wealth of FDI and grow together.
Malaysia is now own by the Chinese and you want Philippines to loss its identity if you want more Chinese to move in the Philippines.
Malaysia worst rhan Philipines
@@reynaldodizon6563you don't need to merge with Malaysia to have Chinese to move to the Philippines. They will move themselves, especially from China, to conquer your country, just waiting for the right time 😂
@@rizabalinashow worst is that? I checked the world corruption ranking, Malaysia at number 61, while Philippines at number 116. 😂😂😂
@@gkdijeiwhheuheyhwygwyhgst5308 you forgot the big scandal of Malaysia about funds
I do NOT blame this company. Filipino workers are known to be corrupt. It'll be very hard for a foreigner like Intel go to the Philippines.
Labor cost. Easier to manage plants in close to neighboring countries and keep cost down especially during that time.
China's labor cost was rising fast but Intel didn't close their plants in China. So labor cost is not the issue. The real reason was the tax holiday of Intel Philippines was expiring and the Philippine government didn't want to extend the tax holiday.
Many reasons. Corruption. No more incentives. Traffic. Electricity cost. Etc.
But at the end of the day, the Philippines did not see that Intel was contributing a significant value add to the local economy. While Intel export revenue was indeed high, imported materials accounted for over 95% of the exported value so there was really not much value added. The Pentium was made abroad and all that was done in the Philippines was installing the Pentium in the processor package.
So there was no real economic reason for the Philippines to fight to keep Intel in the country. In the end, Intel was not really missed.
Slightly before and long after Intel left, the Philippines experienced a long period of consistent strong economic growth that was only broken by the pandemic. During the post Intel period, the Philippines had one of the longest periods of high growth rates in Southeast Asia. It still is growing.
So in the end, Intel left because they could not sell the benefits of staying to the Philippine government. And so Intel could not get enough concessions to mitigate all the negative factors.
I seem to think that Western companies ignore the moral hazards of investing in countries like China that don’t share their democratic ideals, and think only of the profits and returns to shareholders (thus, lower costs like low wages and electricity costs). Why not invest in countries like the Philippines whose people share Western ideals?
Political instability and corruption is the biggest reason.
Corporations are for profit only as they have corporate legal duties to their stockholders.
Corruption is so high, the workers are not educated, lazy and incompetent. High costs of doing business. Not worth the money and hassle when you got countries like Vietnam and Thailand making huge strides in their economy.
@TonyP they did and Phillippinos slap Intel in the face with corruption and theft.
@KKK Revolution the difference is the Chinese are highly educated and very motivated. They don’t stand around all day talking crap and doing nothing like Filipinos do. They also don’t wasted their time with nonsense jobs like in the Philippines. If Filipinos focused on what it takes to actually get stuff instead of sitting around gossiping all day then they would quite literally rule the world.
Reasons why Hitech companies do not enter PH, heard this from a friend who is well versed in the electronics industry in PH prior to covid. Foreign investors for this sector require a certain ratio of PHD graduates in Sciences in relation to population and PH is falling way back compared to other countries. To remedy this the govt thru the DOST is offering Masterals and PHD education to anybody interested (scholarship) the only requirement is that the student can not leave the Philippines for 2 years ( I think) after graduation.
If they close other overseas ventures, that would be logical if they bring global crisis as a reason.
But if they close one venture, and start building in their neighboring country, then it must be something else.,, opening new venture in new country will cost them more, if they really in the crisis, they will not gonna do that..,
All foreign investments in any countries cannot depend on these investors to stay due to sentimental values or due to historical relationships. They only go to the cheapest places. In order to stay competitive, countries need to start preparing to go up the industry "food chain" to e.g. make chips or design chips. But this is very challenging and needs long term strategy and government support. It's not just the Philippines, many countries are stuck in this middle income dilemma.
I was an Electrical Engineer from the Philippines. Now Registered Nurse here in Canada. It was my pride that made me chose Engineering over Nursing but regret it deeply. If you are student and want to succeed, take Nursing instead and the future is brighter.
Cold Fusion has a video of Intel's long slow decline. It may as well be one of many reasons why they closed.
Another reason if you agree with me or not is because of the restriction of the ownership of FDI or foreign direct investment in the Philippines as according to the current constitution that only 40% of their ownership and the rest of 60% should have a Filipino ownership for multinational companies like Intel and the company couldn't expand their market here due to the said restriction. And no wonder my country is one of the lowest FDI market in Asia.
Damn you'd be expecting to find an answer with that title. Now that's some 10 mins of my life I won't be able to get back.
Once you go to confession, everything is fine.
Typical pinoy belief
Minute 6.32 was Kulim Intel in Malaysia. Still operate until now
They have to invest in Indonesia if they want to survive, but we won't do it, there are still many semiconductor companies that will invest in Indonesia, I hope Intel doesn't lose its market in microcomputer chips too.
that's the only reason they are because of electricity, because many high-tech factories in Indonesia, Thailand, Malaysia & vietnam😅
They already are. th-cam.com/video/MIurVNBajqI/w-d-xo.html
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles...
1. In the beginning God created the heaven and the earth.
2. And the earth was without form, and void; and darkness was upon the face of the deep. And the Spirit of God moved upon the face of the waters.
3. And God said, Let there be light: and there was light.
It's all about money, these companies go to countries where they can make more money. If it is not, why will Intel build factories overseas instead of USA? Most of the manufacturing & fabrication was transferred to China and Vietnam, where there are no labour laws, where the govt assures smooth operation no matter what. It's all about money!!
It's about location as well. Why pay millions for shipping per year when it's cheaper to produce the item locally for its customers. That's the reason why China is so popular because it's a huge market
No labor laws?🤣
In My opinion,n, they close the plant bcoz of high labor cost not the recession, in fact, that year, Intel bought an animation company in the UK for 1 biliion dollars.
Its not true that ph had political instability. The fact ph is the most stable politics in the region , constantly at the hand of oligarch. Who ever the president, their high politician governor etc come from same families.
South Korea has oligarchs, too but it's wealthy
@@alice_agogo many countries have oligarch, but are they blocking the poor to advancing. Ph politics systemically make people stay poor and exploited.
Thats why NPA stay alive right, because they have desperated people gave them supports , same as latin america.
And now Filipino vote in another Marcos. No hope!
@@alice_agogo It is also tiny, and US interests are there, with tons of bases, there is tons of US money there bolstering the South Korean economy.
It was just an assembly and packaging place, not a wafer fab, which is the heart of semiconductor manufacturing. Nowadays a wafer fab is a $10 billion investment.
Extremely difficult to start business in Philippines,
due to so much unnecessary rubbish nonsense useless paper work,
and even for filipinos trying to go overseas to work,
there are so much unnecessary rubbish nonsense useless paper work eg POEA ,
created by POLO and Philippines gov ,
making it extremely hard for Philippines people to find jobs overseas
That's the definition of excessive bureaucracy, which is one of the long-standing ongoing issues in the Philippines. About going overseas, that sounds like the aspiring workers are almost depriving of finding and landing better opportunities elsewhere, so the Pinoys are trying to escape that "ProudToBePinoy" craphole.
You're correct about the paperwork. We have a business here and it's really a problem.
Sana kung may business na ganun huwag sana nakawin mga materials as I read the comments below. Naniniwala ako na may ninanakaw dahil may kaibigan akong nag audit sa isang business at silay nag inventory meron daw itinatago ng mga incharge ng stocks na hindi alam ng manager owner. Sana honest ang mga employees.
Bottom-line, Never waste your time in University to finally become the slave of Corporates ...
Many of the comments here are very sensible and mostly likely correct, too. But a 'national' self-recrimination is only self-defeating afterall, companies will leave and relocate for whatever gives them the most return regardless of a host country's favors and dedication. Sometimes it's just plain business decisions. And if there are lessons to be learned, then just do better from now on.
To understand why, you have to look at the situation from Intels point of view and not from a filipino point of view. Of course losing a major high tech employer sucked for the Philippines and its people, no question. But a company runs on margins, and those margins can become very slim pretty fast when multiple issues arise. If the financial crisis didn't happen, Intel would probably have stayed at least longer in the country. But in the long run it's not economically viable for a tech giant to stay in the country with the highest electricity cost in southeast asia. And maybe the most important factor is the political instability. I'm not talking about the Philippines being a banana republic that changes dictators every year, that's obviously not the case. But politics in the Philippines has created a huge amount of redundant bureaucracy creating more cost and delays in production. While a domestic company does not face the same amount of bureaucracy and also is prepared to endure those delays, a global conglomerate is not. Global supply chains are highly responsive to delays, as the shortage of goods in many areas during Covid proved. In the long run that means unbearable cost for a global player, even if the local labor is educated and comparatively cheap. Politics and their bureaucracy is the foreign investment killer number 1 in the Philippines and many other countries around the globe.
“Educated local labor”is a sentence that will never be uttered about the Philippines.
Vietnam is the most favorable for aspirational technology companies like Intel
THIEVES INSIDE!! Corruption to the fullest..i remember working there and notice all their workStation pc were padlock coz thieves inside stealing the cpu chips and employees stealing laptops and sell outside syndicates
Unfortunately, but true
What the heck?really?
Wowww that is quite something
Corruption mentality by some employees and management. It happened also in our company there. It then affects everybody.
I try to do business here in Philippines. Corruption is real and very costly. I remember FedEx complaining as well as they left.
Fedex returned to the Philippines.
simple, corruption
I work in a competing company in Cavite. I have heard news then of corruption both of management and employees, politics, etc. plus stealing of shipments while on travel. I believe these are part of it. It could have stayed I think if only of these issues is not present. Even if the China impact, high cost of electricity and labor are big factors.
High energy costs
see it was President Marcos in those days that invited the US Texas Instruments and Intel to put up a Manufacturing Plant in The Philippines in 1974.. Electricity and water are not yet that too expensive during those times.It was during the Cory Admin when we experience rotational Brown outs and Power and Water Shortage that added to their Cost in maintaining the Plant.
The main reason I see why most of the big companies invested in our country is because politics here is so
great that even companies are being politicized plus we can not discount the fact that corruption was also great.
Your country needs to avoided at all costs
@@underworldringside big NO there is always a leader who can curb and solve all these problems we have, this had been caused by previous administration for their personal interests and not for our country and its people.
It's not about export value. It's value add that counts.
I agree in reopening the Bataan Nuclear Powerplant. The cost of electricity is just too much already
Not gonna happen. You need dozens of nuke plants. Only 1 would not make a difference.
European and western countries want to shift nuclear to renewable energy. The common problem is the same in other countries, is hazard waste.. the only way to dispose hazardous waste is to dig underground. No other option. Thats the problem of nuclear plant.. even USA have many place to dump the waste still many people dont want nuclear plant..
@@alice_agogo Regarding Indonesia's nuclear number 1 in Asean, do you realize... where do you come from, how come you don't know... humans from planet mars know?🤣🤣🤣
@@maumuapa4198 we don't cone from you, thank God 😀
@@alice_agogo during the time BNPP was built it would been enough, idk today
an intel employee said intel wanted more perks from the govt loke tax breaks,etc. it wasnt given so theywent to vietnam bec it was cheaper there
Implied an answer to the question, but didn't provide one.
Intel is owned by a Jewish businessman. He's the type who seeks the cheapest place to do business according to former union employees of their plant in the US who were involved in a strike and were laid-off when operations were transferred to the Philippines and elsewhere in Asia. Semiconductor assembly is a very labor intensive undertaking and quite naturally one shouldn't be surprised at all if eventually they also move in the future if wage growth becomes too fast in Vietnam. Something similar is happening in China where it's engineers are training their Indian & Vietnamese counterparts to transfer production knowhow for Apple's decision to move I-Phone production lines to those countries. But this is not to discount other factors such as pressure from US stockholders, the high power cost, labor unrest etc. prevailing in the Philippines at the time.
I live in the Philippines and the electricity cost here is so astronomically high not to mention a very poor instrastructure and a very corrupt government.
Intel closed down chips' facilities, one in Phillipines, one in Malaysia.. which one.?
The electricity is no higher than any other neighboring island nation, there is actually only 1, that is Singapore, and their electricity is more expensive than Philippines'. Island locations will more than likely, always have a higher electricity cost, renewable energy on island nations is a challenge.What do you exactly mean by, "high labor costs?" The minimum wage in the country is low for a lot of the population honestly, so the Intel sweatshops were all of a sudden requiring higher pay for employees?
New Intel factory in Dalian, China much lower cost than the General Trias factory. The Makati plant was also very old with no room to expand further. There was also apparently poor local management. High electricity costs would be fine, if returns and possibility for expansion are guaranteed in a location. But that's still on the lower rung of likely causes.
In the PI there are up to 17 national holidays each year, along with a 13 month salary where in December of each year workers are paid an extra months pay. This is not merit based it is just the law of the land.
Actually the Philippines has a higher electricity cost than Singapore The Philippines is 2nd next to japan with higher electricity cost in Asia.. this is one of the reasons why the Philippines skip the manufacturing industry and choose the outsourcing services...if only it can have it both. It would be great.
Electricity cost in the Philippines is actually the HIGHEST in South East Asia.
@@jaredgalvin in 2008??
I was there on the ground when intel plant relocated to gen.tri. and when it closed down, we had to deal with uneasy contentment with corrupt lgu with their promotion family values as well as their family members who wreak havoc on site. incompetent logistics partners and expiring tax holiday that was vaguely resemble as guidelines rather than an actual rule. but the good thing that came out of intels case was an improvement for future electronic investment and curbing the nepotism and greed of lgu in the future.
We have higher cost of electricity in the Philippines, that's the problem
No, leftist communist ideology is the problem of the Philippines. Has been since Cory’s time. Filipinos will keep going backwards. All the capitalists are fleeing the socialist democratic system - even foreign banks are going faster than they are coming.
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles...
Intel exited because of the clause that associated in the Philippine constitution that states foreign investments that has a manufacturing plant cannot be owned 100% by any foreigners. It should be 60/40... And it's product will not be allowed to be sold in the local market... Thank you 1987 cory constitution for this
Seems I kicked the hornets nest. The point I was trying to make was that at one time, long ago the PI was one of the "better off" nations in SE Asia. Over time it has failed to keep pace with it's neighbors and if you have traveled to those nations it is apparent. Infrastructure, manufacturing exports of goods. The PI main export is people, who by sending back remittances provides nearly 20% of the nations income. The leadership, education and a ruling class is for some reason is. holding the nation back. Over the holidays the city where I live here in Mindanao is inundated with women and children on the streets looking for handouts. I am sure one can argue this is a global occurrence these days
More pronounced in Phil. Agree with the government doing little to invest in education. Foreign nvestment in labor will not happen in Phillipinnes with it's current labor laws and over regulation in addition to challenges with supply chain given it's proximity to other countries.
@@meowco69 u r right . I’m a foreigner I feel that also . Firstly high cost of electric . And some workers use of labor law be weapons and blackmailing companies ….
There was a bill approved by senate early this year allowing 100% foreign ownership on some sectors (particularly public on public services & utilities). The picture of PH attractivenes to foreign investors may change this time around.
Sectors covered by the bill:
Telecommunications; Airlines; Domestic shipping; Railways; Railways; and Subways. Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles
Good, hope this will serve as a wake up call to the Philippine government.
I wonder how the employees got paid. Also so wonder how much profit Intel was making off the employees. If the pay was not great but the talent of the employees was high that could lead to problems. What I observed is that when you pay Filipinos well they won’t screw you. However when I see companies pay Filipinos poorly and treat them like trash they get trash results. Every Filipino I have ever paid treated me well and never screwed me over. I’m not saying corruption isnt bad here but from a business perspective if you treat them well usually good results come from that. The only time I have been ripped off is when doing business with other Filipino companies. However for hire an employee I never got screwed but I pay them very well.
This makes sense. The pinoys are just as honorable as other people. But when you are very poor, survival is more important, so it is tempting to steal.
It was a political move. The Cavite location actually had lower direct cost than China and Malaysia. China required an in country plant to sell products in China so expansion had to move there.