Manufacturing seen to mark stellar growth

The Philippine manufacturing sector is expected to continue its brisk performance, after it grew 12.3 percent in the last quarter of 2013—said to be its fastest pace in the last three years.

Roberto F. Batungbacal, chair of the American Chamber of Commerce and Industry’s manufacturing committee, said the local manufacturing sector extended its lead over services through the past four quarters, pushing manufacturing growth in 2013 to 10.5 percent, or nearly double the 2012 growth of 5.4 percent.

“I’m personally excited about these high growth rates. It provides momentum, but we may be disappointed if the numbers this year may not be as high, given the elevated base numbers of 2013,” Batungbacal said.

“Growth continue to be narrow. Majority came from one sector, which is the chemical and chemical sector. Semiconductor and electronics continue to see weakness in the short term. The remarkable growth of wood manufacture is actually driven by the growth of a hand-full of export firms. We’d like to see sectors like food, garments and furniture take root this year given our growing competitiveness.”

Batungbacal further noted that the drivers for sustained industrial growth are aligning.

“Government understands industry a little better. Industry is gaining confidence, we have a more competitive peso, [while] smugglers and tax evaders are being chased. We look forward to the long awaited Industry Development Council to strengthen the coordination across the various industries in our pursuit of industrialization,” he said.

For this year, the government has channeled some P2.3 billion to a new program dubbed the “Manufacturing Resurgence Program,” which is meant to further boost the much needed investments in the sector. Part of this funding will be used to revive the Industry Development Council, the official body in terms of policymaking.

Late last year, the Joint Foreign Chambers and local business groups have sought for increased government support in reviving the labor-intensive industries and in expanding the high-value added manufacturing sectors. The move is expected to accelerate and sustain economic growth and reduce the unemployment rate in the country.