Despite a decline in output from the electronics sub-sector, the manufacturing sector would be able to sustain growth in the second half of the year following its performance in the first semester, the Department of Trade & Industry said Monday
 
"… There was significant growth in manufacturing. Manufacturing grew over 5 percent during the first semester,” Trade Secretary Gregory Domingo said during the Economic Briefing at the Philippine International Convention Center in Pasay City.
 
In Asia, Philippines was second to China in terms of growth in the manufacturing sector during the first six months “… and we expect a strong third and fourth quarters," Domingo said.
 
The decline in the electronics sector was party offset by non-electronic sectors which posted remarkable performance during the period, the Trade official noted.
 
To widen grow markets for locally-made products and boost the manufacturing sector, Domingo said the Philippines will actively participate in international trade shows in Germany, France and China.
 
"I have already asked for the increase in the budget for CITEM [Center for International Trade Expositions and Missions] by 40 percent so that we could actively participate in the international expositions," he said.
 
"We have already identified a few countries which could be big winners for the Philippines. We will put bigger presence in these international trade shows," he added.
 
The 320 inbound and outbound investment missions in the first half of the year showed that the country is a constant magnet for foreign investors and government is doing what it takes to attract foreign direct investments and boost the manufacturing sector, according to the Trade official.
 
It terms of direct investments, the Philippines lags behind some Asian neighbors and is faring better than others, said Philippine Economic Zone Authority director general Lilia de Lima said.
 
However, more and more investors – not only the Japanese – are now giving the Philippines a serious thought the country continues to attract foreign investments, according to the PEZA chief.
 
"There are lots of interests now, even from the European Union," she said, noting some of the biggest Japanese investments so far consisted of printer manufacturing companies Canon, Brothers, and Fuji, and also electronics firm Murata.
 
Despite these gains, an official of the International Finance Corp. said the Philippine government should flex its macro economic muscles to attract more investments.
 
"We still trail Malaysia, Thailand and Indonesia but better than Vietnam and Cambodia in the recent competitiveness survey,” said Jesse Ang, the IFC resident representative, said during a briefing. “The Philippines' ranking in doing business survey is weak."
 
The Philippines climbed 10 places to 75 in the 2012 Global Competitiveness Survey, but remains behind Singapore (No. 2), Brunei (28th), Malaysia (25th), Thailand (38th), and Indonesia (50th).
 
The number of steps to start a business in the Philippines remains a big deal, Ang said, noting the perception regarding corruption in the process could not be erased unless improvement is noticeably in place. — VS, GMA News