MANILA, Philippines - The Philippines’ manufacturing revival will be in full swing this year as the Board of Investments (BOI) expects the share of manufacturing projects in the agency’s total approved investments to double.
The BOI is projecting the share of registered manufacturing projects to jump to at least 22 percent this year from last year’s 11 percent, signaling the government’s dream of bringing back to life the country’s manufacturing industry.
“Our manufacturing is dead that is why we are reviving it,” BOI managing head Ceferino Rodolfo said.
“We will double the share of manufacturing to total invesment pledges this year,” Rodolfo said.
In 2016, investment projects approved by the BOI reached P441.8 billion, in which manufacturing projects accounted for P49 billion, or 11.09 percent, of the total. Power projects had the lion’s share at P209.9 billion, followed by real estate projects at P65.8 billion.
This year, the BOI sees total project approvals hitting their highest level in nearly two decades, growing at least 13 percent to breach the P500-billion mark.
Various programs being undertaken by the current administration are expected to support the projected growth in incoming investments.
Rodolfo said the expected influx of manufacturing projects have already been taken into account for this year’s P500 billion target.
He said the surge in manufacturing projects alone would be fueled by the growing interest of Chinese firms in the country following the renewed relationship between the Philippines and China.
“We are now seeing an increasing number of Chinese enterprises going into the Philippines,” Rodolfo said.
Just last week, the BOI received letters of intent from five Chinese firms signifying their interest in exploring business opportunities in the country’s aviation, oil downstream, renewable energy, iron and steel, and shipbuilding/ship repair industries.
These projects are likely to bring in $10 billion worth of investments and generate 15,500 jobs to the country.
Rodolfo said a number of multinational cement manufacturers have likewise expressed interest to put up plants in the country.
“For us, we’d like to have more of the construction related materials manufactured here to create jobs here that would go hand in hand with the increase in infrastructure spending of the government. Since we will be spending a huge amount for our infrastructure, the more local content and the more jobs generated out of these – not just in the construction itself but in the inputs of these construction services – the better for us,” he said.
Rodolfo said broadening the scope of manufacturing activities entitled for incentives under the 2017 to 2019 Investment Priorities Plan of the government is also in support of boosting the local manufacturing industry.