Gov’t plans to hike contribution of mfg to economy
MANILA, Philippines - The government is aiming to increase the share of the manufacturing sector total economic output to 30 percent by 2020 from the current level of 22 percent under the Comprehensive National Industrial Strategy (CNIS).
Trade Assistant Secretary Rafaelita Aldaba told reporters that under the CNIS which serves as the country’s blueprint of overall industrial development, the government wants to increase the manufacturing sector’s contribution to total economic output.
“Our target is for manufacturing to hit 30 percent of our GDP (gross domestic product)…We want to achieve this by 2020,†she said.
The government also wants to raise the manufacturing sector’s contribution to total employment to 15 percent by 2020 from its current nine percent share.
Aldaba said the country can hit the targets if more firms, both domestic and foreign, will pour in funds for manufacturing operations.
“We hope we can see more substantial investments from local companies that go into manufacturing and from multinationals that locate in the Philippines,†she said.
She said the government would also want more companies to choose the country as their manufacturing hub in the Southeast Asian region.
“Based on what I hear and see and the conversations with economic attaches of our main investors, primarily Japan, they have strong vote for the Philippines,†she added.
In attracting more investments in manufacturing, the government would want to promote sectors that are not power intensive such as furniture, automotive, as well as chemicals.
Among the binding constraints to achieving the goals set under the CNIS are the high costs of power as well as smuggling.
The government is pushing for the development of the manufacturing sector as this is seen to help create more jobs.
Apart from manufacturing, the government also wants to develop the agricultural and services sectors under the CNIS.
Aldaba said the government however, has yet to set growth targets for the agricultural and services sectors.
Through the CNIS, the government would want to be able generate more jobs, achieve inclusive growth and prepare for the upcoming Association of Southeast Asian Nations (ASEAN) regional integration.
The ASEAN Economic Community, to be established in December 2015, will transform Southeast Asia into a region with free flow of goods, services, skilled labor, investments and capital.
Aldaba said putting in place measures to transform the country’s industries will be necessary to achieve growth and improve competitiveness.
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