MANILA, Philippines - The local automotive industry highlighted yesterday the importance of crafting the Implementing Rules and Regulations (IRR) for the Comprehensive Motor Vehicle Development Plan (MVDP) as soon as possible because it is vital in the investment decision process of firms.
“There is a sense of urgency to finish the IRR,” Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Elizabeth H. Lee said in a telephone interview.
“Our current MVDP is already outdated. There is a need to implement the new one now because our neighboring countries have good investment packages for automotive firms,” Lee said.
Lee said that the industry appreciates the move of the Board of Investments (BOI) to make the IRR for the MVDP as industry friendly as possible. In fact, the BOI has even asked the industry to give specific inputs for the IRR.
Lee said that aside from attracting more potential investors in the country, the MVDP will also help existing players decide on whether or not they will expand their operations in the country. “These are low hanging fruits that we can easily access but we need to take care of them,” Lee said.
She admitted that the industry has unused capacity. This means that the local auto manufacturers can produce more here in the Philippines but they choose not to because it is not economically viable.
On the upside, Lee said it is not too late to implement a regulation that will help make the country an attractive destination for auto firms but she said that because our neighboring countries like Thailand and Indonesia have a strong incentive package for firms, the Philippines may lose out on possible investments if no package is implemented.
“We really have to act now because we don’t want to lose out on other countries that are very aggressive in trying to lure investors,” Lee said. She said that even Vietnam is adamant in attracting new investors.
Earlier, BOI managing head Cristino L. Panlilio said that the government and the private sector must work together to push the local car manufacturing because the industry’s manufacturing plants are operating 60 percent below capacity.