DTI: Manufacturing related investments to rise in 2012

CEBU, Philippines - While massive floods have greatly affected the economy of Thailand, the Philippines on the other hand expects to benefit from it as the incident could pave way for manufacturing investments to transfer to the country.

Department of Trade and Industry (DTI-7) regional director Asteria Caberte said that Cebu in particular has to prepare for the influx of manufacturing related investments by next year, that would bring in more employment opportunities, and further boost the economy.

“Thailand for now, can never be an option, and the Philippines is a better option for investors,” said Caberte.

According to Caberte, although the Philippines still has to catch up in competing with other attractive investment destinations in manufacturing such as Vietnam, among others, “we still have an edge over other countries.”

The good business environment, the streamlining of business processes—which makes it easy for businessmen to transact business in the Philippines, is one of the advantages that the Philippines can take advantage with to re-gain the manufacturing investments, which was dominated by the Philippines years ago.

Aside from manufacturing investments which is expected to flow in the Philippines by next year, Caberte said tourism is also one of the direct beneficiaries of Thailand’s problem now, while more tourists will re-consider their choice of destination, and again—the Philippines is the closest alternative.

Garments, gifts, toys, and housewares, and other sectors in th manufacturing sector are expected to register good growth by next year, Caberte said.

Earlier, economist Bernardo M. Villegas, of the University of Asia & the Pacific (UA&P) said that Cebu will gain further economic strength in these identified industries cuahs Business Process Outsourcing (BPO), tourism, manufacturing, agri-business , creative industries, logistics, among others.

“You are very lucky because you have a good mix of sunrise industries,” said Villegas referring to the good position of Cebu to thrive economically, amid fragile economic condition.

He said Cebu will leverage much on these four “Fs”. Tourism is largely link with entertainment and food and the province has these competitive edges.

Exports on the other hand, which used to be one of the regions, specifically Cebu’s “bread-winners” is still going to face challenging future at least within this year.

“Exports will be very difficult, that is why most exporters are now shifting or diversifying into real estate,’ Villegas said.

He said the region’s growth is seen to hit the “above average’” level by the end of this year, that will hover within the nine to 10 percent.

Villegas added that the threat of power shortage with the robust growth in investments in the next couple of years, is something that is expected to be solved immediately.

The reality now, he said is a lot of companies and businesses are going out from Metro Manila, and consider in transferring elsewhere. One of the most attractive sites is Cebu.

Significantly, he said Cebu should also maximize on its advantage in drawing the world’s medical tourists, as it has good hospitals, and environment is perfect of this particular market. (FREEMAN)