A STRATEGY is being readied to help big firms as well as small- and medium-scale enterprises (SME) thrive amid challenging market conditions, the government’s Trade chief said yesterday at the start of the three-day 37th Philippine Business Conference and Expo at the Manila Hotel.
The event, themed: “One. Global. Filipino. Driving partnerships, sharpening our competitive edge,” is expected to end on Friday with a set of recommendations from participants, to be submitted to President Benigno S. C. Aquino III, aimed at enhancing effectiveness of government policies and programs to increase investments.
The blueprint for the industrial strategy has three components, Trade Secretary Gregory L. Domingo said in his speech at the event, which is spearheaded by the Philippine Chamber of Commerce and Industry (PCCI).
First, the government will continue to push key industry “winners” identified in the Philippine Development Plan 2011-2016 and the Philippine Export Development Plan 2011-2013, particularly: electronics manufacturing; shipbuilding, ship repair, steel fabrication, mining, information and communications technology and business process outsourcing (BPO), especially the contact center industry.
Second, the government will revitalize the tourism industry by developing more destinations. This thrust also aims to encourage more micro, small and medium enterprises to provide products and services for this industry and, thus, generate more jobs for people in rural areas.
“These two components of our industrial strategy go hand in hand, since the first component addresses big business, which will generate urban employment, while the second component primarily focuses on SMEs, which are critical to providing employment in rural areas,” Mr. Domingo said, stressing that the latter will be instrumental to ensuring that economic growth from here on would benefit more of the poor.
Finally, the government will also dedicate efforts to develop sectors which are “not yet ripe for the picking” but need special assistance given their huge potential, including car manufacturing, as well as palm oil and rubber production and processing.
Sought for comment, David O. Chua, Philippine Steelmakers Association president and chairman of this year’s conference, said: “We’re optimistic that these are very achievable targets. But definitely, we should attract local capital to invest more in industry and foreign investors to help us develop the BPO sector to help us generate the employment needed to keep the local market vibrant.”
Francis C. Chua, PCCI president, commended the focus on developing tourism, saying, “Tourism has a multiplier effect, and that multiplier effect will surely benefit trade.”
In his speech, Vice-President Jejomar C. Binay said the government is committed to finding ways to helping businesses weather current difficulties. “We live in interesting times… businesses need all the help they can get from government because, despite the crisis, they still have to make a profit and compete,” Mr. Binay said.
He added that government should seek more funds locally than from foreign creditors in its move to support development projects. “I think the government should give priority right now to using our very large dollar reserves and use that, instead, for its development projects,” Mr. Binay said in his speech. “There is really no need to borrow outside and increase our debt.”
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By: E. J. Diaz
Source: Business World, October 26, 2011
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