Phl urged to create environment conducive to manufacturing sector

MANILA, Philippines - The Philippines needs to create an environment conducive to expanding and attracting investments in the manufacturing sector which has the capability to provide more job opportunities, an industry official said.

Roberto Batungbacal, president of the Samahan sa Pilipinas ng mga Industriyang Kimika (SPIK), said with its macroeconomic stability and the rising manufacturing cost in China, the country is in a unique position to rapidly grow the sector.

“But we need leadership who is committed to growing the sector, we need investors to re-look into manufacturing,” he said.

Batungbacal said developing flexible labor policies that are focused more on employment are imperative.

“It is like we should have a bias for employment, prioritizing finding new employment,” he noted.

Batungbacal, the country manager of Dow Chemical Pacific Limited, also underscored the need to address the high cost of power.

“Let us find industries that are not power (intensive), which are not too dependent on power. Like our (chemical) industry, power is less than three percent of our total cost,” he said. 

 Batungbacal said having sufficient ports and roads are also crucial to reduce the cost of shipping in the country.  

He said the country likewise needs to focus attention on labor-intensive manufacturing industries like garments sector which is experiencing a resurgence.

Batungbacal said policies that enable the rural workers to undergo vocational training into manufacturing shall be developed.

“If you look at Germany and other European states, skills/special training that go with the manufacturing is a valued career. We can do that (here) so that not all people have to go college; they can have a good, rewarding career in the manufacturing sector,” he noted.

As the 2015 ASEAN integration draws near, Batungbacal further said local manufacturers should seize  opportunities and stay competitive.

“We need to look for products that we can produce which our ASEAN neigbors do not produce.  There is always an opportunity to find the right product,” he added.

The manufacturing sector grew 9.7 percent and 10.3 percent in the first and second quarters of the year, respectively.

“Those numbers are historically high. It is important to note that in the last two quarters, manufacturing grew faster than services...We are not saying that we should grow slower in services. Every sector should be growing,” Batungbacal further said..