PHL-based business groups set ambitious jobs creation for factories

Philippine factories are capable of creating up to four million new jobs in the run up to 2022 with a little help from government in resurrecting labor-intensive industries while expanding the output of  high-value goods, according to Philippine-based business groups.

 

Foreign and local business groups noted in a policy brief the new jobs in the manufacturing sector would be generated at the rate of 500,000 a year beginning in 2015.

 

The brief, titled “Manufacturing: Creating Millions of Better Jobs,” was released on Thursday.

 

In a press conference coinciding with the launch of the report, co-author Roberto Batungbacal said the creation of 500,000 jobs a year would raise to 25 percent the share of manufacturing to the gross domestic product (GDP) from the current 21 percent starting in 2016 before going further up to 30 percent in 2022. 

 

"The 500,000 target is not impossible but will require policy adjustments," said Batungbacal, who is also the president of Samahan sa Pilipinas ng mga Industriyang Kimika (SPIK).

 

"Country-branding of the Philippines as a talented, innovative, and creative manufacturer of high-quality products should also be undertaken," the policy brief noted.

 

The policy brief noted the value of instituting reforms covering issues that hinder the manufacturing sector from growing.

 

According to the brief, policy issues must be addressed including high electricity costs and reliability of power supply, underdeveloped infrastructure, restrictions on foreigners in land ownership, labor policy, human capital, red tape, weak planning, smuggling, and high corporate and personal income tax.

 

The Philippines is in a position to grow the sector and create new jobs because of a largely English-speaking workforce, an expanding domestic demand, the successful economic zones, a better international image and a stronger gross domestic product, said John Forbes, senior advisor of the American Chamber of Commerce of the Philippines Inc. and co-author of the policy brief. 

 

"The Philippines has a window of opportunity to grow the manufacturing sector that we encourage the public and private sector to take advantage of," Forbes said, adding that the policy brief will be submitted to the  Office of the President and members of the economic cluster. – VS, GMA News