The Philippines is trying to lure Hong Kong’s toy manufacturers with tax cuts, seeking to boost an industry that has attracted companies from the US and Japan.
Hong Kong’s toy manufacturers “are seriously considering” relocating and expanding in the Philippines due to rising production costs, the trade department said in a statement on Wednesday.
They can benefit from a plan to lower corporate income tax rate from 30% from 25%, broader production network, and wider access to markets such as Japan and Europe, said Trade Undersecretary Ceferino Rodolfo. Last month, the Southeast Asian nation’s investment board met with the 250-member Toys Manufacturers’ Association of Hong Kong.
The Philippines hosts 125 toy manufacturers, including production sites of Mattel Inc, Bandai Namco Holdings Inc and Dunlop International Co Ltd. It exported $176.1 million in toys and games in 2019.