Government mulls more perks for investors – DTI

MANILA, Philippines - The government is looking to provide more incentives for investors through programs focused on certain industries that will sustain the revival of the country’s manufacturing sector.

Trade and Industry Secretary Adrian Cristobal Jr. said the agency is currently exploring three to five industries in which the government could provide needed boost for further development and growth.

“We have some ideas on what these could be, but we will make that announcement in due time. These are going through the process of consultations,” Cristobal said.

The DTI chief said incentivizing certain industries would help ensure the revitalization of the country’s manufacturing sector.

 “We believe that to achieve long term inclusive growth, the much needed quality jobs in the economy, and sustaining the competitiveness of the country, the manufacturing resurgence that we are experiencing now should be sustained,” he said.

Cristobal said the Comprehensive Automotive Resurgence Strategy (CARS) program serves as a perfect example of a focused, targeted, and high impact incentive package.

The program, signed under EO 182, seeks to boost the country’s automotive manufacturing industry by providing P27 billion worth of incentives to local automotive assemblers. 

Under the program, prospective local car assemblers may apply for fiscal support by locally assembling three vehicle models with a commitment to produce 200,000 units for each model during its six-year model life.

“The CARS program we see it as a template for focused and targeted industry development. This year, looking at the other roadmaps we have, we would like to package three to five more programs of this kind focused on selected industries. But  as you know,  it took us also a couple of years to develop that program from studies, roadmaps and intensive consultations,” Cristobal said.

For this year, the government has budgeted P289 billion for the Manufacturing Resurgence Program (MRP), higher than last year’s allocation of P239 billion.

The MRP has been crafted to help achieve the goals of the Philippine Manufacturing Industry Roadmap through projects that would be implemented by agencies like the Department of Science and Technology, Department of Labor and Employment, Technical Education and Skills Development Authority, Commission on Higher Education, Department of Energy, and Philippine Coconut Authority.

The program aims to rebuild the existing capacity of industries, strengthen new ones, and maintain the competitiveness of industries with comparative advantage.

The country’s manufacturing sector suffered a slight drop of 1.8 percent in October 2015 on the back of the adverse effects of El Niño and continued weakening of demand from China.

The government, however, expects the manufacturing sector to exhibit stronger growth for the coming months and years ahead.