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Technology Companies Favour Philippines Over China For Labour

It's no secret that Asia is home to many of the world's most booming technology companies, as well as the destination for cost-effective labour - but with China's labour costs on the rise, it looks like their sights will now be set on the Philippines.

Since the announcement of Foxconn's plans to increase the pay packet of their factory workers, it seems that this decision has forced several electronic firms in China to weigh up their accounts and relocate to the nearby Philippines.

According to The Washington Post, Philippine trade secretary Gregory Domingo claimed a number of Japanese electronics, steel and ship building companies had shown "very strong interest" in setting up shop in Philippine export processing zones.

Domingo expressed in a government economic briefing that to date the Philippines is seeing “the most we’ve ever seen” of investor fact finding missions from foreign firms. China’s five-year plan (ending in 2015) states that the minimum wage increase should hit the 13 per cent mark on average each year whilst Foxconn's main factory in Shenzhen, says the local government has increased pay by nearly 16 per cent to 1,500 yuan (£150) per month.

Although this may be good news to many Filipinos and bring about a much needed boost to their job market, their pay will never be on par with the rest of their worldly counterparts - a fact that is unfortunately sad but true.