PEZA urges firms to hike local sourcing of raw materials

These six new economic zones include five information technology (IT) parks and centers and one horizontal economic zone in Negros region. (Photo By Philippine Economic Zone Authority – http://www.peza.gov.ph/, Public Domain)

MANILA — The Philippine Economic Zone Authority (PEZA) has urged its registered firms to increase local sourcing of their raw materials.

PEZA Director General Charito Plaza said the agency eyes for a “reverse trade fair” this year, where importation of PEZA-registered companies would be displayed for local suppliers to offer their products to these PEZA firms.

“We will display all the importations of our industries for local suppliers to know that these importations are actually available in the country,” said Plaza.

“What’s the goal of PEZA? To minimize the import dependence of our industries and to encourage new industries or complimentary industries that would manufacture or process these available raw materials with us,” she added.

PEZA Promotions and Public Relations Group Manager Elmer San Pascual said that only 20 to 25 percent of raw materials used by PEZA-registered companies are being sourced in the Philippines while the rest are imported.

Plaza further said this trade show targets to expand business capability of local industries by supplying to multinational companies in PEZA.

She added that this would also help PEZA-registered firms to lower their production costs as they would hike local sourcing of raw materials.

“PEZA-registered companies have access to cheaper labor here as well as tax- and duty-free importation. So now, we want to improve the supply chain capability of the country,” Plaza said in Filipino.