DTI-BOI: Human Resource Development Programs in the Automotive Industry Cluster to generate 300,000 jobs by 2022


Human resource development in the Automotive Industry Cluster will be the focus of the Department of Trade and Industry (DTI)’s and the Board of Investment (BOI)’s 11th Trade and Industry Updates (TID Updates) on 17 October 2014 to be held at the BOI Building in Makati city. The DTI-BOI regularly conducts the TID Updates forum in support of the country’s industry roadmaps.


“The automotive manufacturing industry is one of the major drivers of the country’s industry sector, generating about a quarter of a trillion pesos in sales last year. Now in its implementation phase, the roadmap targets 300,000 quality jobs by 2022; and equally important is the technology that the industry will stand to gain throughout the life of the roadmap and beyond,” DTI Undersecretary and BOI Managing Head Adrian S. Cristobal Jr. said.


The Philippine Automotive Manufacturing Industry (PAMI) is one of the major drivers of Philippine industry generating approximately Php248.5 billion sales in 2013. The industry is comprised of two core sectors, the Manufacture of Parts and Accessories for Motor Vehicles and the Manufacture of Motor Vehicles, while allied industries include the Manufacture of Bodies, Wholesale and Retail Trade, Maintenance and Repair of Motor Vehicles, and Wholesale and Retail Trade of Parts and Accessories of Motor Vehicles.


In 2013, the industry estimates that it has directly employed 8,000 workers in auto-manufacturing. Meanwhile, the auto parts sector, with 256 companies mainly located in Manila, Laguna, and Cavite, generated approximately 68,000 jobs. In addition, 340,000 Filipinos are employed in Auto-Supporting industries. Despite high-skills requirements, PAMI has been employing high school and vocational school graduates.


“The comprehensive operation of the automotive industry extends to other complementary sectors, i.e. textiles, glass, plastics, electronics, rubber and iron and steel. Hence, increasing PAMI’s productivity would likewise increase the economic activity of supporting industries, and the Philippine economy as a whole,” Cristobal explained.


A study by the University of Asia and the Pacific cited the potential of PAMI in job creation. The study projects that 170,000 additional direct employment would be generated for every Php100B in investments. In addition, if a government stimulus package is granted, the industry would be able to gather additional Php41B in investments that would generate 70,000 new jobs (C. Terosa, 2010).


Three topics will be presented during the forum: Auto-electronics, Auto Parts and Auto Policy, which would be discussed by Mr. Arthur R. Tan, President and CEO of the Integrated Microelectronics, Inc. (IMI), Philippine Automotive Competitiveness Council Executive Director Ramon Vicente T. Kabigting, and DTI Assistant Secretary Rafaelita Aldaba, respectively. Key stakeholders are also invited to participate in the enhancement of employment environment in the automotive industry cluster in the Philippines.


PAMI is composed of a number of industry associations. The Federation of Automotive Industries in the Philippines (FAIP) serves as the umbrella organization that include members from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), Philippine Automotive Competitiveness Council, Inc. (PACCI), Truck Manufacturers Association, Inc. (TMA), Philippine Motor Association (PMA) and Motorcycle Development Program Participants Association, Inc. (MDPPA). The Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) is the major association for parts manufacturing. (END)