Filipinos say government should support manufacturing sector

MANILA, Philippines — Majority of Filipinos believe that the government should support the country’s manufacturing sector, driven by its potential to drive economic growth, according to results of a recent Pulse Asia survey.

In a virtual forum yesterday Pulse Asia president Ronald Holmes presented the results of its survey commissioned by think tank Stratbase ADR Institute, which asked 1,200 respondents all over the country about their views on the manufacturing sector and how it affects the Philippine economy.

According to Holmes,   62 percent of the respondents said that the manufacturing sector contributes to economic growth and development the most through the creation of livelihood opportunities for local service businesses needed to support manufacturing operations, and by making goods more affordable and accessible to Filipino consumers (62 percent).

In addition, 50 percent of the respondents also believe that the manufacturing sector increases local and foreign investments that will create more quality jobs and employment opportunities, while 49 percent also noted that the sector produces more products for the local and export market.

Considering the economic benefits of the manufacturing sector, 61 percent of the respondents said there is a need to provide opportunities for training to workers to upgrade or learn new work skills.

Meanwhile, 50 percent believe that there is a need to provide more incentives that are competitive to other countries, while 45 percent believe there is a need to develop more economic zones.

Stratbase ADR Institute president Dindo Manhit said there is a need for investments in the manufacturing sector to meet the growing demands of consumers.

“If given more support by the government, the country’s manufacturing sector can help ensure the upward and stable growth of the economy,” Manhit said.

“Investments in the manufacturing sector will lead to a domino effect that will increase productivity, create high quality jobs, provide income and food security, enable the affordability of goods, and spur consumer spending. But then again, setting up a manufacturing operation requires a significant investment in infrastructure, workforce, and knowledge capital,” he said.

Manhit said that government support in policy development and incentives is strongly needed to enable an effective economic transition.

He explained that issues commonly faced by manufacturers in ease of doing business, trade facilitation, access to raw materials, and labor productivity should be addressed urgently.

“The government should take full advantage of the existing sweet spots enjoyed by the country in the areas of demographics, natural resources, geographical location, and language facility because these advantages power up the country’s position of strength,”Manhit said.

“With these inherent strengths, the Philippines will find it easy to build the momentum for long-term growth and development – provided that it focuses on getting its house in order through good governance and adherence to the rule of law,” he said.

During the virtual forum, Employers Confederation of the Philippines president and Philippine Exporters Confederation president Sergio Ortiz-Luis Jr. said that the next Philippine Export Development Plan 2023-2028 underscored the importance of diversifying the country’s export basket by attracting investments in four clusters including the manufacturing, industrial, transport and technology, and health and life science sectors, as identified by the Department of Trade and Industry.