Industry said stagnant for 30 years

PHILIPPINE industry has remained stagnant for three decades and fallen behind that of other Southeast Asian countries, a government think tank official said on Wednesday. The Philippines has not shown significant developments in industry and manufacturing, Philippine Institute for Development Studies Acting Vice-President Rafaelita M. Aldaba said at a PIDS-hosted forum on industrial development, held Wednesday at the Batasan Complex. In the past thirty years, issues such as inefficient resource allocation and lack of adjustment measures have kept industry from developing. At present, lack of structural transformation stunts the development of industries in the Philippines, Ms. Aldaba said. She also said that the level of foreign direct investments (FDI), a strong driver of industrial development in the Philippines, is low. "Most studies show that weak investor confidence is due to poor governance, inadequate infrastructure, tight fiscal situation, and weak competition,” she said. "In order to stimulate the development of industries in the country, it is imperative to improve industries’ competitiveness. Effective government policies that could catalyze private sector growth must also be drafted,” Ms. Aldaba said. The PIDS officer cited the manufacturing industry’s three-phase roadmap for structural transformation where phase one will involve rebuilding the capacity of existing industries, strengthening emerging industries, and maintaining competitiveness of comparative advantage industries from 2014 to 2017. The 2018-2021 second phase entails shifting to high value-added activities, investments in upstream industries and linking and integrating industries. The third and final phase, from 2022 to 2025, is to deepen participation in regional integration, particularly in the automotive, electronics, machinery, garments and food sectors. The government released the manufacturing roadmap earlier this year. "Industrial upgrading and transformation could address missing gaps and linkages,” Ms. Aldaba said, noting also that strengthening industries in the country could help generate jobs. She also said that fiscal and non-fiscal incentives must be given to foreign investors, and that councils and institutes on industry must be established. The PIDS officer also said that the government must look into research and development, skills training, SME development and innovation to improve industries in the country. -- MLVA