FPIP Highlights Value of Supplier Networks at ASEAN Forum
Supplier networks are becoming an increasingly important consideration for companies looking beyond land and utilities when choosing where to locate.
Speaking at the Consultative Forum on FDI and Intangibles Development in ASEAN held on May 6 to 7 in Kuala Lumpur, Malaysia, First Philippine Industrial Park (FPIP) Senior Vice President and Head of Industrial Business Group Yutaro Kuryu said these networks are playing a bigger role in investment decisions.
Kuryu shared that manufacturers in aerospace, semiconductor, electronics, and precision manufacturing operate alongside suppliers and specialized service providers at FPIP, creating an ecosystem that supports both their operational efficiency and long-term growth.
In some cases, the presence of these suppliers has become a key factor in attracting larger technology and manufacturing investments.
“In most industrial strategies, the anchor locator comes first and the suppliers follow. In our experience, we saw the reverse,” Kuryu said. “For instance, a semiconductor manufacturer chose to locate at FPIP after several of its key suppliers had already established operations there.”
“Locating close to suppliers, customers, and support services can help reduce costs, shorten development timelines, and strengthen supply chains,” he added.
Apart from supplier networks, companies are also placing greater emphasis on workforce readiness, sustainability, and infrastructure reliability. To support these requirements, FPIP has invested in workforce development, renewable energy access, power reliability, and water sustainability initiatives.
However, attracting investments related to research, engineering, and technology will also require stronger support systems and policies that promote innovation. Closer collaboration with the Philippine government, educational institutions, as well as the private sector is essential in building these capabilities.
“The transition from an ‘assembly hub’ to a ‘design and engineering heart’ is not an overnight event. It is a deliberate engineering project,” Kuryu said.
The two-day invitation-only regional forum was organized by the United Nations Conference on Trade and Development (UNCTAD) and the ASEAN Secretariat, with support from the Australia for ASEAN Futures Initiative.
