A More Inclusive Future for Philippine Industries
Now seen as a new growth area, the Philippines is well positioned to attract new investments that would catalyze industry growth and development. Since 2012, the DTI has focused on a new industrial policy to create more and higher quality jobs and attain sustainable and inclusive growth.
The Philippine new industrial policy would enable the country to maximize the trade and investment opportunities from the ASEAN Economic Community (AEC) and address the challenges arising from it. The new industrial policy aims to create the proper environment and strengthen Philippine industries in order for them to become globally competitive.
Through the new industrial policy, the Philippine government aims to promote domestic industries in both the local and global markets. With the private sector as the major driver of growth, the government acts as coordinator and facilitator to implement policies and necessary support measures to address the obstacles to the entry and growth of domestic firms.
Upgrading manufacturing and integrating it with the agriculture and services sectors to promote strong forward and backward linkages can lay the foundation for the Philippine economy’s structural transformation. Industrial policies are crucial to enhance firm productivity, deepen linkages of domestic firms and SMEs with large domestic and multinational companies, and aggressively court more investment. Policies will also be necessary to boost the survival of new entrants and provide assistance for the growth and development of SMEs.
To enable firms to move up the technology scale, programs should be formulated to improve technological and human resource capabilities as well as to strengthen supply chains. For these to be effective, issues on infrastructure, logistics, governance, and regulation must be addressed.
The Comprehensive National Industrial Strategy (CNIS) will link and integrate manufacturing, agriculture and services; address supply chain gaps; and deepen industry participation in global value chains. Strategic actions include human resource development; SME development; innovation and R&D activities; green industries; aggressive promotion and marketing programs; infrastructure investments to address the high cost of power, logistics and shipping; and streamlining and automation of government procedures and regulations affecting business operations.
Upgrading and transforming industries would enable the movement of workers from the informal to the formal sector, as well as from low-value added activities to high-value added activities where wages and compensation are much higher. By creating the proper environment, industries can unleash their full potential to take advantage of current and prospective market opportunities, thereby becoming engines for job creation, poverty reduction, and sustained and inclusive growth.