Phl Emerging as 'Friendshoring' Hub

For US Global Investors - HSBC

- By KEISHA TA-ASAN

The Philippines is emerging as a promising destination for US and global investors looking to diversify supply chains away from China, according to HSBC Global Research.

"Though currently paused, we think low reciprocal tariffs from the US and amicable Philippine-US relations offer global investors a potential opportunity to diversify," HSBC ASEAN economist Aris Dacanay said in a report released yesterday.

"We think the Philippines may be a budding friendshoring destination for the US as well as a destination for the China+1+1 strategy for investors elsewhere. Time to turn the tides," he said.

With ongoing tensions in global trade and the restructuring of semiconductor supply chains, Dacanay said the Philippines could carve out a bigger role in the tech manufacturing space, especially in assembly, testing and packaging of electronic components.