EDITORS DESK
The Philippines is teeming with all kinds of brilliant concepts and roadmaps supposedly to bring us to a stage of development ahead, if not at par, with our peers in the region.
Unfortunately, most of these concepts and roadmaps just remained on paper, but are being implemented and copied by other competitor countries, which are now reaping the benefits.
There are reasons for our shortcomings though. We have been bogged down by corruption, bureaucratic red tape, politics, and the lack of a sense of urgency or simply the lack of passion among our leaders to move fast.
And if there is one virtue that Filipinos can be faulted upon is their abundance of patience. But in this age and the state in our economy, and poverty around us, that virtue is no longer a virtue. Time is of the essence.
That is why, if there is one thing I really liked about the previous administration is their decisiveness in the implementation of infrastructure projects right away and not wait for the private sector.
The Duterte administration wanted to leave a legacy of the “Golden Age of Philippine Infrastructure.” For all its faults, the Duterte administration was able to build or start some of the most strategic infrastructure projects in the country. Thanks to the dogged determination of his finance chief, Secretary Sonny Dominguez.
Every administration has only six years to accomplish its agenda. That six-year period is short, but long enough for a president to make a mark in history.
If the government sees certainty in a strategic area of development, we should decide to dive it now. We cannot just wait for kingdom come for these investment pledges to arrive in the country.
Then DTI Sec. Ramon Lopez initiated the campaign to develop the country’s huge nickel industry potential. Trade and Industry Alfredo E. Pascual also followed it up with much vigor. One of his growth goals is to deliver our manufacturing prowess by tapping our green metals.
In fact, Pascual recently met with some of the top mining industry officials and executives to discuss the prospects of mineral processing for copper, gold and nickel. He is also weighing whether to ban or tax the export of raw ore.
DTI aims to transform the country as production hub for electric vehicles (EVs) and participate in the global supply chain for EVs. Really, time to move up in the automotive value chain.
Nickel is a critical raw material in the manufacture of EV batteries, which run EVs. The cost of batteries accounts for half of the total cost of an EV. Thus, it makes no brainer to push for the downstream processing of raw ore for EV batteries, rather than exporting them to China as raw material.
By further processing our raw ore, we are creating high value products at higher prices. By doing value-added manufacturing, we will be creating more quality jobs. Then, we can export more products that are of greater value, resulting in lesser imports.
In manufacturing, we will be developing our capabilities. When this is done, many foreign investors will be attracted to join in a technologically advanced nation. The economic and social impact can go on and on.
But this is just a dream. Unless the government makes up its mind, we will continue exporting raw materials that we in turn import as finished product at very high cost.
But, unless we craft the right policy, it will take longer for investors to decide to invest in a country where they can get their raw materials cheap.
The Philippines owns the bragging rights of being the fifth most mineralized country in the world: third in gold, fourth in copper, and fifth in nickel. But our failure to take advantage of this natural resource is a shame.
The government has miserably failed in most, if not all, of its manufacturing ventures in the past. But the green metals offer the best opportunity to make it big in the EV global supply chain.
The Progressive Car Manufacturing Program and the People’s Car Program failed to develop an ecosystem. Only time can tell if the CARS Program will be a success story or another flop.
Aside from the country’s nickel resources and the presence of 10 major nickel mining firms in the country, there is already an enabling law - the Electric Vehicle Industry Development Act – that will complement downstream nickel manufacturing.
I won’t venture to discuss about the convoluted Maharlika Investment Fund. But one thing I am convinced about: the proposed Philippine wealth fund will be funded by money from government financial institutions such as the Land Bank of the Philippines and the Development Bank of the Philippines and contributions from the central bank dividends. It is a debt-financed fund that will invest in projects deemed strategic for the country’s development.
Let me put in my two cents. If the government is really bent on investing in strategic projects, there is no need for Maharlika. The government should instead utilize the National Development Co. (NDC) to invest in a project that has the best potential for growth.
For the first time, NDC should not be allowed to gamble as it used to do in their previous unsuccessful manufacturing projects. NDC’s role is to ensure that the government nickel processing venture becomes successful.
Seize the day!
(The author is the assistant Business Editor of Manila Bulletin.)