Manufacturing sector to get fresh boost


Socioeconomic Planning Secretary Arsenio Balisacan. INQUIRER FILE PHOTO

MANILA, Philippines—Boosting the manufacturing sector will be a highlight of the government’s updated Philippine Development Plan (PDP), with economic officials having a consensus this strategy would address what critics describe as “jobless growth” the country is experiencing.

The Aquino administration’s economic team is in the process of updating the PDP for 2010 to 2016 with the aim of making the country’s robust growth meaningful—one that actually results in poverty reduction and does not benefit only the rich and the middle class.

Socioeconomic Planning Secretary Arsenio Balisacan said the government wants the updated PDP to be focused on generation of substantially more and higher quality jobs so that the still high poverty incidence will significantly be reduced.

“We want to see a revival of the country’s manufacturing sector. We want to focus the government’s development program on generating more employment opportunities and high quality jobs,” Baliscan said.

The government’s economic team is expected to release the updated PDP before the end of this year.

To boost the manufacturing sector, Baliscan said, the government will have to address problems in the bureaucracy that makes it difficult for investors to do business in the Philippines.

He also said the government intends to allocate more funds for infrastructure to complement the requirements of industries.

An increase in the budget for education and training also is expected to be part of the updated PDP so the country can meet the labor requirements of potential investors in the manufacturing sector.

The Philippines was one of the few countries that avoided contraction during the global recession in 2009. Also, it posted robust growth in 2012 and in the first quarter of this year at 6.8 and 7.8 percent, respectively, thus grabbing the spotlight amid a lackluster global economy.

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  • Elaine

    Yes! jobs in manufacturing … exactly compatible with the Filipino workforce motivation of reward …. an 8 to 5 daily & monday to saturday employment. at last! …a bright idea of govt on job generation that may just keep un/underemployment to tolerable levels … as opposed to making agri- business(wo)men out of agrarian reform beneficiaries (of average 1 hectare of agricultural landholding & mostly subsistence land cultivators). But as commentators here say … get the infrastructure right to support the industries! and get them out of metro manila to other urban centers. and more importantly! engage the LGUs to provide business friendly environment as well as consult them on their eco development plan & infra requirements. i observe national govt capital/road projects for improvement/rehabilitation identified & planned by national/regional-based engineers are not at strategic locations but some outlying areas! However, local governments lose their infra allocation should the proposed priority project be a national road that is a major urban access to neighboring municipaities. The govt’s Dept of public Works & highways should think strategic — connecting major urban centers as hubs for inter urban-rural transport linkages to promote production and service marketing needs both ways. This would also discourage informal settlers from mushrooming in urban areas as industries grow, considering work force can conveniently commute to their outlying rural residences.

  • Nic Legaspi

    They say the biggest hurdle in the manufacturing sector is the high power rates. We haven’t done anything about that yet…

    I do wish our local manufacturing industry diversifies into defense equipment. The government could be its biggest customer.

  • Pilipinas Blogger

    Ibaba muna ang presyo ng kuryente dito sa atin.

  • Booby Trapped

    Give it a deep thrust and a big boost. That’s how it should be done. Slowly and easily, it will all come to fruition.

  • kismaytami

    As in fresh electricity increases…

  • eight_log

    PUT IN PLACE A LEVEL PLAYING FIELD FOR ALL AS Pnoy promised … that is the very secret to progress in all sectors in the Philippines!!!!!

  • santosboi

    a 60/40 policy for local/foreign investor is good if only our local investor available. kaso halos wala naman maki tie-up sa mga incoming foreign investor kaya masyadong silang nahihirapan. maybe we had to review again some policies that prevent them to invest and for us to generate more secured jobs. then dapat we had to plan the impact of this on our power to sustain the immediate surge of investor kung sakaling dumami ang mga manufacturer. baka puro brownout lang abutin natin. then wag naman natin hayaang basta na lang aalis ng wala man lang tayong ginagawang alternative o solusyon. parang ok lang sa tin umalis sila kung gusto nila tulad ng goodyear at ford. tapos iiwan lang nila ang marketing. sa taxes lang tayo kikita dyan pero sa trabaho konti lang makikinabang.

  • PepingCo

    This PNoy administration still doesn’t get it. It continues to focus on the “small things” that investors are looking at as far as doing business in PH. In order for manufacturing and mining FDIs to come in, the govt should adopt long term actions in order for the investors’ business to be viable in the long term. You dont put up a factory and then move out after a year or two. Problems in power stabilty and power rates, infrastructure, support industries, tax holidays, land ownership, company ownership cap, etc are some of those that need solutions fast. There’s nothing new that these PNoy administration technocrats are talking about. Wake up! We are so far behind!

  • buritos

    Sana kasama ang Mindanao sa plano ni Prof. Balisacan.

    • Guest

      asa ka pa. hindi vote rich ang mindanao. madali ang vote cheating dun. why would this administration and LP invest in Mindanao when it’s cheaper to rig votes in Mindanao? that’s how they do their cost-benefit study.

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