MANILA, Philippines—Trade officials are bullish on a “resurgence” in the Philippine manufacturing sector, which is expected to continue growing by 10 percent over the next few years, after outpacing the growth of the services sector for the first time in the third quarter of 2013.
“Manufacturing is growing by 10 percent and we expect that it will maintain that pace for another year or two. The services will continue to grow by 7 percent. The IT-business process outsourcing industry expects to exceed 1-million direct employment mark [this year],” Trade Secretary Gregory L. Domingo said in a briefing on Wednesday.
“There is a high level of interest from investors and traders, and we’re getting a lot of inbound missions,” Domingo added.
According to the trade chief, the Philippines has become a more attractive place to do business given the robust economic growth, investment ratings upgrade, and presence of a young, English-speaking and loyal workforce.
“What we’re seeing now is more interest from investors to do applied research and development and come up with new products. The challenge is for the Philippines to come up with graduates in the sciences, particularly in engineering, physics, chemistry,” Domingo said. “We are moving on to higher value added type of production, which will require a high level of education and skill.”
The goal, according to trade officials, is to also increase the contribution of manufacturing to the Gross Domestic Product.
At present, the share is about 20 to 23 percent, according to Trade Undersecretary Adrian S. Cristobal Jr. But in neighboring countries, the share is much higher at about 34 percent.—Amy R. Remo