Incentives for auto, parts sectors sought
The Philippines risks losing as much as P250 billion worth of output from the automotive and automotive parts manufacturing sectors, if it does not provide the much needed fiscal support to boost and sustain the viability of these local industries.
Speaking in behalf of Rep. Rufus Rodriguez, chief of staff Kenny Roy Dichaves noted that also at risk would be approximately P60 billion in combined manufacturing value-added of these two sectors, direct employment of 85,524 with P17.7 billion worth of compensation income, as well as P6.7 billion worth of combined value-added per total employment.
Dichaves gave these projections last Friday when he addressed attendees of the Public Conference on the Philippine Automotive Manufacturing Industry initiated by the city government of Santa Rosa.
In his presentation, Dichaves noted that the Philippine automotive market continued to lag its peers in the Association of Southeast Asian Nations.
Data from the Asean Automotive Federation showed that as of end-August, the Philippines ranked fourth in Asean as it sold only 116,613 motor vehicles, paling in comparison to Thailand, which sold the most number of motor vehicles at 939,342 units.
In terms of motor vehicle production, the Philippines was at the bottom compared to four other countries with a production of 50,223 units as of end-August this year, while Thailand produced 1.735 million motor vehicles in the same period.
Dichaves thus stressed the need to have a competitive auto manufacturing industry as this presented significant economic and employment opportunities.
It was estimated that P100 billion worth of investments in the auto manufacturing sector may yield P367 billion worth of output in other sectors of the economy; P27 billion in additional household income; and 169,061 additional jobs in the economy, supporting 845,305 individuals.
A new policy, outlining fiscal and nonfiscal incentive support, has thus been deemed critical in reviving the local automotive manufacturing industry. Such incentives, contained in the roadmap crafted by the Department of Trade and Industry, are still under study.
“The roadmap is an attempt to put the Philippines in the auto manufacturing map in Asean. At least three players, of which two are existing and one is new, are waiting for the auto roadmap,” Trade Secretary Gregory L. Domingo earlier said.
