DOMESTIC manufacturers will come together to make a strong pitch to the government to help the sector in attracting companies from Japan and China that are looking for alternative production sites in Southeast Asia.
Jesus Arranza, chairman of the Federation of Philippine Industries (FPI), said the group would convene representatives from manufacturers and producers nationwide, the academe, labor, concerned government agencies and other stakeholders on November 24 at the Hotel InterContinental in Makati for the Philippine Manufacturers and Producers Summit.
“We will make the government understand that manufacturing in the Philippines is not a dying sector and we need support to take advantage of the opportunities that lie ahead,” Arranza told the BusinessMirror.
Bob Batungbacal, FPI director and chairman of the summit, said manufacturing has been in a problematic situation for a long time now due to the apparent neglect of the government.
He said their constant appeals for tariff protection to give local industries a better chance of competing against cheaper imported goods have fallen on deaf ears.
“We want to raise the awareness among policy-makers how strategic manufacturing is, and that it is more important than the services sector when it comes to employment generation and economic impact,” Batungbacal said.
He said if the Philippines will put in place the right policies, the country could play host to Japanese companies that are looking for alternative manufacturing sites in the region, as well as the rush of firms that are leaving the coastal towns of China due to rising labor and production costs.
Batungbacal said if the Philippines will miss this tipping point, the country would have to wait for decades again to have this kind of opportunity of rekindling the luster of the manufacturing sector.
“Our appeal is for the government and private sector collaboration and teamwork to create a diversified range of manufactured products, aggressively attract manufacturing FDI, and encourage linkages between FDI and local manufacturers to enable technology transfer and innovation in our local industries,” he said.
He noted that even advanced countries, such as Switzerland, Singapore, the United States and the United Kingdom, have always prioritized manufacturing as their main engine for growth, which is why they constantly promote and defend their manufacturing sector.
“The US and UK are now focusing again on manufacturing because this sector has the strongest impact to unemployment by providing long-term productive jobs. It has the highest multiplier effect to the economy and it spurs innovation,” Batungbacal said.
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By: Max V. de Leon
Source: Business Mirror, Oct. 2, 2011
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