Phl needs structural transformation to achieve inclusive economic growth

CEBU, Philippines - The Philippines needs to undergo structural transformation to fully realize the potential of regional integration and achieve inclusive economic growth, an official from Department of Trade and Industry said.

DTI Regional Operations Group undersecretary Zenaida Maglaya said the government and private sector have to collaborate in strengthening industries and raising the competitiveness of regional economy.

“[We need] to shift from agriculture-based and services-led economy to a more pervasive and sustainable development catalyzed through industrial upgrading,” Maglaya said during last week’s forum in Cebu on ASEAN integration which was attended by representatives from government and business sector.

The World Bank in the Philippines said the country’s rapid economic growth has failed to achieve inclusive growth yet because of the slowing agriculture and manufacturing sectors. Both sectors have slowed down in recent years.

Maglaya explained realizing industrial upgrade would need the linking of the two vital sectors.

“We are more than capable of moving up the value chain of agribusiness and food manufacturing and as well as compete in the global and regional markets of our products and services,” the trade official cited.

Increased agricultural productivity will help develop the labor-intensive manufacturing industry as well as the services sector.

“Our task is to ensure that the gaps in agribusiness supply chain are securely filled in,” Maglaya said, adding industry policies must push players to be more productive and market-oriented.

“The coordination between the private and public sector is imperative,” the official continued. 

She also added the business sector should also link with the academe to fully undertake industrial upgrading.

The trade agency has conducted the Industry Roadmap Project to prepare Philippine industries for the ASEAN economic cooperation.

Maglaya noted at least 30 roadmaps of various sectors are already submitted by the private sector to the Board of Investments, a DTI-attached agency. She added 22 of these are already in various stages of development. (FREEMAN)