Business
Trade & Industry
Marcos veto of CARS, RACE budget seen undermining Philippine industrial growth
Marcos veto of CARS, RACE budget seen undermining Philippine industrial growth
The Philippine Metalworkers’ Alliance (PMA) said the veto of two automotive manufacturing incentive programs signals the government’s retreat from developing the country’s industrial base, threatening the livelihoods of thousands of workers.
PMA, a national trade union of metalworkers, said the lack of priority in both the Comprehensive Automotive Resurgence Strategy (CARS) and Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs was already evident when they were placed under unprogrammed appropriations (UAs) in this year’s ₱6.793-trillion national budget.
The group said this illustrates how the government perceives industrial development as an option rather than a long-term commitment.
PMA national president Narciso Lozano Jr. said the veto of the two programs, part of the ₱92.5 billion in UAs scrapped by President Ferdinand “Bongbong” Marcos Jr., is just another step in this continued disregard.
“Defunding CARS and RACE sends a dangerous signal that the government is retreating from industrial development and decent job creation,” said Lozano.
The two programs are flagship industrial initiatives designed to rebuild domestic automotive manufacturing, strengthen local supply chains, and generate high-quality employment by attracting strategic investments.
PMA said they are key pillars of the country’s broader industrial and manufacturing strategy under the Philippine Development Plan (PDP) 2023-2028, the Marcos Jr. administration’s medium-term socioeconomic blueprint.
Citing data from the Board of Investments (BOI), the group said the budget cut threatens around 8,000 workers in the automotive manufacturing sector and 340,000 more in supporting industries such as metalworking, electronics, and logistics.
PMA added that it could also put the country’s economic growth at risk, as these sectors contribute significantly through value-added production, exports, and technology transfer.
“You cannot expect stronger growth in 2026 while dismantling one of the country’s major value-producing industries,” Lozano said.
To this end, PMA urged Marcos to immediately restore funding for both CARS and RACE programs, noting that they should be treated as “core elements of national industrial policy, not discretionary spending.”
“Restoring and strengthening these programs is essential to protecting jobs, sustaining growth, and securing the country’s industrial future,” said Lozano.
If not, the group stressed, the country may undergo premature de-industrialization at a time when neighboring countries are becoming heavyweights in the manufacturing sector.