Philippines logistics sector to create 7.5 M jobs by 2022

MANILA, Philippines — The Philippine logistics sector may help create 7.5 million jobs and achieve five percent employment by 2022.

Philippine Multimodal Transport and Logistics Association Inc. president Marilyn Alberto said the target employment was set by the government as logistics is seen as a key employment generating sector.

“There is no data at present. That is why we are pushing them to come up with more monitoring of the data, so that we know where we are and where we are going,” she said. 

To achieve the target and allow the logistics sector to serve as an enabler of manufacturing, agriculture and service industries, logistics players and the government have made 10 commitments.

Among the commitments is to prioritize initiatives for a globally competitive logistics sector providing service to customers with the right product at the right time, price and quality, and in a reliable manner.

The industry and government will also work together to cut red tape and eliminate corruption through automation, streamlining and decentralization of permit issuances, and reportorial requirements across government agencies.

There will likewise be a platform for dialogue between government and industry players to discuss policies and regulations to promote a globally competitive logistics sector.

Both parties have committed to abide by the Ease of Doing Business Act which provides required processing time for issuance of permits and other government transactions.

The parties will also encourage and develop government investment commitments particularly in the supply chain and logistics services sectors.

They likewise commit to find long term solutions to issues affecting the logistics sector.

The parties have also committed to adopt high standards on regulatory practices, promote knowledge sharing and benchmarking, encourage investments in the sector, and develop a future-ready workforce.

A study of the Department of Trade and Industry and World Bank has shown the Philippines has the highest logistics cost compared to other Southeast Asian countries.

In particular, the Philippines has the highest level of logistics cost with  27.16 percent of sales of firms going to logistics services.

Other Southeast Asian countries such as Indonesia had a logistics cost over sales of 21.4 percent, while Vietnam had 16.3 percent, and Thailand had 11.11 percent.

Trade Secretary Ramon Lopez has said the government would want to reduce logistics cost over sales in the country and bring it to 21 percent.