An overwhelming majority, nine out of 10, of Filipinos believe that government should support the Philippine manufacturing sector because it has the capacity to accelerate the country's economic growth and development, according to a recent survey.
The Pulse Asia survey commissioned by international think tank Stratbase ADR Institute was released Tuesday, March 16, during an online forum entitled “Reinvigorating the Philippine Manufacturing Sector for Job Creation”, also organized by the Stratbase ADR Institute.
The survey conducted from March 15-19, 2023, asked 1,200 respondents all over the country about their views on the manufacturing sector and how it affects the Philippine economy.
Based on the survey, majority of Filipinos believe that the manufacturing sector contributes to economic growth and development the most through the creation of livelihood opportunities for local service businesses needed to support manufacturing operations (62%) and by making goods more affordable and accessible to
Filipino consumers (62).
Half of Filipinos also believe that the manufacturing sector increases local and foreign investment that will create more quality jobs and employment opportunities (50%) and produce more products for the local and export market (49%).
Considering these economic benefits, respondents also identified actions the government should do to boost the growth of manufacturing and other industries.
Majority of Filipinos (61%) believe that there is a need to provide opportunities for training to workers to upgrade or learn new work skills, 50% believe that that there is a need to provide more incentives that are competitive to other countries, while 45% believe there is a need to develop more economic zones.
In his opening remarks, Stratbase ADR Institute President Prof. Dindo Manhit emphasized the need to improve the manufacturing sector to arrest the decline int the industrial sector.
He said this calls for a shift to an investment-led growth by reinvigorating the manufacturing sector because this will lead to more jobs creation and better lives for Filipinos.
With firms now having their moving capacity at pre-pandemic levels, Manhit said there is a need for investments in the manufacturing sector to meet the growing demands of consumers.
“If given more support by the government, the country’s manufacturing sector can help ensure the upward and stable growth of the economy,” Manhit said.
“Investments in the manufacturing sector will lead to a domino effect that will increase productivity, create high quality jobs, provide income and food security, enable the affordability of goods, and spur consumer spending. But then again, setting up a manufacturing operation requires a significant investment in infrastructure, workforce, and knowledge capital,” he explained.
Manhit added that government support in policy development and incentives is strongly needed to enable an effective economic transition.
“Issues commonly faced by manufacturers in ease of doing business, trade facilitation, access to raw materials, and labor productivity should be addressed urgently while time is on our side,” he said.
“The government should take full advantage of the existing sweet spots enjoyed by the country in the areas of demographics, natural resources, geographical location, and language facility because these advantages power up the country’s position of strength. With these inherent strengths, the Philippines will find it easy to build the momentum for long-term growth and development – provided that it focuses on getting its house in order through good governance and adherence to the rule of law,” Manhit stressed.
Moreover, Employers Confederation of the Philippines President and Philippine Exporters Confederation President Sergio Ortiz-Luis Jr. said that the next Philippine Export Development Plan 2023-2028 underscored the importance of diversifying our export basket by attracting investments in four clusters including the manufacturing, industrial, transport and technology, and health and life science sectors, as identified by the Department of Trade and Industry.
Ortiz-Luis Jr added that these sectors are also the high-growth clusters in the Labor and Employment Plan of 2023-2028 that is being crafted among the tripartite partners of the government, the employers and the labor sector.