PH vehicle, parts manufacturers want plan to hike share of Asean market by 2015
MANILA, Philippines—The local vehicle and parts manufacturing sector has sought government help in crafting a strategic expansion plan that will allow it to achieve economies of scale and capture a significant share in the Association of Southeast Asian Nations (Asean) single market starting 2015.
“Auto and parts manufacturing in the Philippines is both viable and sustainable. An ambitious but realistic strategy can take it to the next level,” Feliciano Torres, chairman of the Philippine Automotive Competitiveness Council Inc. (PACCI), said in a statement.
“To achieve that, we must develop and sustain a public-private partnership (PPP) that creates reforms and public policies that support industry development and encourage investment,” Torres added.
Apart from generating new jobs and providing substantial export revenues to support public spending, he said these policies can also eliminate uncertainty associated with regional supply chain disruptions.
Torres cited as an example the ill-effects of the flooding in Thailand, a major auto production hub in the region. As a result of the flooding, parts manufacturers have been forced to slow down or entirely suspend production, including parts for auto manufacturers in the Philippines.
“We need to act quickly because there is a huge opportunity to grow the domestic vehicle and parts sectors and create jobs,” Torres said.
In a 2010 study by Cid Terosa of the school of economics of the University of Asia and the Pacific, results showed that a “P1 increase in consumption or investment spending for motor vehicles will result in P3.67 worth of additional output in the economy.”
More notably, a whopping P100 billion worth of investments in the domestic automotive manufacturing industry could generate at least 169,061 new jobs.
The study further revealed that the output multiplier of Philippine automotive manufacturing industry was greater than that of all the investment priority industries of the Department of Trade and Industry, namely tourism, business process outsourcing and information technology services, electronics, mining, housingand agribusiness.
“With renewed and strong government support, we are committed to do our part to invest in the Philippines and create tens of thousands of new jobs,” Torres said.
PACCI was established in 2009 to support the domestic auto and auto parts manufacturing industries and increase their overall future competitiveness. Its members include Ford Motor Co. Philippines, Honda Cars Philippines Inc., Isuzu Philippines Corp., Mitsubishi Motors Philippines Corp., Toyota Motor Philippines Corp., and parts maker Motor Vehicle Parts Manufacturing Association of the Philippines (MVMAP).
