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MANILA – The Semiconductor and Electronics Industries of the Philippines Inc (SEIPI) on Tuesday said it was concerned over how a shift to a federal form of government would impact their business. 

SEIPI Foundation president Dan Lachica said industry members want to know how multinational firms would deal with state governments if the shift to federalism, as pursued by President Rodrigo Duterte, pushes through. 

Duterte wants move to shift to federal to start this year

"How do we grapple with a situation for example, a multinational (firm) with sites in 3 different state governments with potentially different rules, different cycle times?" Lachica said in an interview with ANC's Market Edge. 

"How do you reconcile that and justify it to the central headquarters?"

He added that the role of the Philippine Economic Zone Authority (PEZA) also needs to be clarified in the federal setup. 

"Ninety-nine percent of our electronics firms are in PEZA zones. I don't understand yet how PEZA will fit into the federalism structure."

SEIPI called on the government to maintain PEZA as a one-stop shop for investors, instead of making electronics firms deal with multiple local government units under a federal setup. 

Echoing an earlier statement by an official of the Makati Business Club, Lachica said a federal system also posed the risk of introducing "more bureaucracy" for businessmen. 

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"We want to know if the DOF (Department of Finance), DBM (Department of Budget and Management), NEDA (National Economic and Development Authority) have really taken a comprehensive look at the budgetary and economic implications of such a change," Lachica said. 
 

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