MANILA, Philippines — Revival of domestic manufacturing is in the offing as the Philippines is back into the “sweet spot” in terms of cost competitiveness as government pushes for more support in terms of research and development and quality enhancement.
According to Trade and Industry Secretary Gregory L. Domingo that domestic manufacturing has to concentrate first on the light and medium sector because the heavy manufacturing would still require more time.
“The Philippines is back into that sweet spot in terms of competitive cost of labor, production and can compete regionally but just need to retool and government is providing support for research and development so they can move on in the production of competitive and quality products,” he told reporters covering the 1st Philippine Manufacturers and Producers Summit organized by the Federation of Philippine Industries.
He said that a focus on agriculture manufacturing and tourism development are twin programs of the government to create more employment in the countryside and fulfill the Aquino administration’s vision of “inclusive growth”.
“We support domestic manufacturing industry,” Domingo assured the FPI, which is the umbrella organization of various domestic manufacturing sectors.
He even urged domestic manufacturers to try exporting because they are now very competitive as barriers have gone down and the country is now becoming cost competitive in terms of labor cost, production and availability of resources.
With Asia becoming the center of growth due to the crisis in Europe and US and the flooding in Thailand, growth is gravitating towards the emerging markets that include the Philippines.
He said that some manufacturing firms are coming back into the country, particularly garments.
“We are seeing some movements of other corporations like garments and others and I think they will continue to do so,” he said.
“Manufacturers should strive more to exports because you are basically serving the domestic market,” he said.
He said that DTI is extending all out support for exports because there is no other way to go but exports in the same way that the government cannot prevent imports from coming in.
“So, you really have to try to export your products because trade barriers are down,” he added. “With resources there is no problem, we just have to change our mindset and try to compete globally,” he said.
In terms of quality, he said, the government is now putting more focus on quality control because that would make local products competitive in the global market.
He also supported the FPI’s call for the crafting of a domestic manufacturing industry roadmap.
FPI chairman Jesus L. Arranza has also called for the establishment of an industry clustering program and establish R & D centers to harness the value of local industries. “The backbone of the economy is manufacturing,” he said.
The FPI has pushed for the strengthening of domestic manufacturing with agriculture as its anchor.
==============================================================================
By: Bernie Cahiles-Magkilat
Source: Manila Bulletin, Nov. 26, 2011
To view the original article, click here.
Subscribe to the Arangkada NewsRoom via RSS
Comment here