FPI pushes for manufacturing revival

MANILA, Philippines — The umbrella group of producers in the country is pushing for the revival of local manufacturing through the full implementation of laws to support the sector’s growth.

“I think it’s high time to bring back manufacturing,” Federation of Philippine Industries (FPI) president John Reinier Dizon said in a briefing.

While some observers say that the bus has left, the FPI believes it is not too late to revive the sector, albeit acknowledging that it won’t be an easy task.

“Is local production easy? Of course not. The permitting process alone without limiting to national permits, you have LGU (local government unit) permits, what not, it’s hard,” Dizon said.

In setting up manufacturing plants, he said firms are also concerned about how to lower the cost of investment and inputs, as well as ensuring there is demand for their products.

He said the Philippines, which has a population of around 115 million, offers a big market for locally manufactured goods.

The country is also rich in natural resources, including metallic and non-metallic minerals.

“All the ingredients are there, but we just need to get our acts together. We have these recently passed laws which we believe are strong enablers,” Dizon said.

He cited laws that can support the manufacturing sector including the Tatak Pinoy Act, which seeks to encourage the production of globally competitive Philippine products and services, as well as the New Government Procurement Reform Act aimed at enhancing existing procurement systems.

“So the laws are there...I don’t think we need new laws. I think we just need to implement (and) enforce,” he said.

He also said there should be a level playing field for manufacturers.

The country’s move to embrace free trade many years ago has opened the market to imports.

While the FPI is not against imports, Dizon said the group is promoting the country’s locally made products.

To help local industries compete, he said the government needs to make use of laws and available tools like safeguard and anti-dumping measures.

“We’re not asking for handouts from the government, but we’re asking for a chance to have a level playing field,” he said.

FPI chair Elizabeth Lee said the implementation of the Philippine National Standards (PNS) is seen to help level the playing field as the standards apply to both locally manufactured goods and imports.

Developed and implemented by the Department of Trade and Industry, the PNS aims to ensure that products sold in the market meet safety and quality standards.

FPI board director Rey Go said the group also wants the government to encourage Filipino consumers to purchase locally made products.

Earlier, HSBC Asia Economics associate director Ines Lam said that the Philippines should focus on service exports over manufacturing to stand out to investors.

She said it is difficult for the country to compete with Vietnam, which has become the preferred destination for manufacturing investments.

“I’m not saying that manufacturing is not important, but because the Philippines has already found its uniqueness, its comparative advantage, I think it’s important that the Philippines does not lose this and instead focus on developing this in this new trade dynamics, new paradigm,” Lam said.

Lee said the FPI is set to release a manifesto outlining policy recommendations to support the manufacturing sector at its summit next month.