Manufacturing Advocacy Paper 2018
Manufacturing remains to be a key growth driver for the Philippines which constitutes a quarter of the country’s GDP in 2018. An annual review by the Bangko Sentral ng PIlipinas (BSP) indicated that the manufacturing industry in the Philippines contributes to more than a quarter of the GDP and accounts for more than half of the country’s industrial sector. Meanwhile, in the last quarter of 2017, while the other ASEAN countries have experienced a decline, the Philippine manufacturing sector has exhibited growth with an 8.8% y-o-y increase.
Although the sector has been faring well in the past years especially in Asia, the reality is that the country’s industry is mostly composed of assembling, design, and testing centers only. In addition to this, most of the materials used in assembly and manufacturing are imported from other countries. Moreover, a dramatic increase in the steel trade deficit has been observed in the recent years.
The development of the Domestic/Export Economic Zones (D/EEZs) is essential, most especially in the regions which benefit from the existence of the plans and programs of these D/EEzs. However, this year, a drastic decline on the pledges and investments placed were observed due to the uncertainty and fear caused by TRAIN 2.
Despite the evident developments and initiatives in the sector, multiple industrial concerns still need to be addressed.