The government needs to implement industrial policy reforms to transform the manufacturing sector into a key player in generating investments, employment and innovation, according to a study released by state-run Philippine Institute for Development Studies. The study by PIDS senior research fellow Rafaelita Aldaba said these reforms would enhance companies’ productivity, deepen linkages of domestic firms and small and medium enterprises with large domestic and multinational companies and gain more investment inflows. “This is to capitalize on the rapidly-changing global conditions wherein emerging economies like the Philippines are becoming key players as the United States, European Union and Japan continue to face slower growth,” Aldaba said. She said there should be a revival of the manufacturing sector to attain more inclusive and sustained growth. The sector’s weak performance is clearly manifested by its low contribution to employment, investment, and productivity growth, she added.
