Manufacturing sector key to inclusive growth–Neda

THE Philippines will have a better chance of achieving inclusive economic growth if the manufacturing sector would strengthen further, the National Economic and Development Authority (Neda) said.

In a speech at the Planning Workshop on the Updating of the Industry Cluster Roadmaps in Davao City, Neda Deputy Director General Margarita R. Songco said while the Philippines’s economy has been touted as among the fastest-growing economies in the region, growth has not reached all Filipinos.

“The country’s economy has been touted as one of the fastest-growing economies in the region. While we are aware of this growth and take pride in the recognition given by the international community, including credit-rating agencies, we also acknowledge that we are yet to make this growth felt by every Filipino. As such, we will continue to find ways in accelerating the achievement of inclusive growth,” Songco said.

The strong growth of the manufacturing sector must be sustained if inclusive economic growth is to be attained. Songco said the government is directing its resources to attain this.

One of the ways by which the government is sustaining the manufacturing sector’s recent success is by identifying critical constraints and support needed through the creation of various sectoral road maps prepared by the private sector in coordination with the Department of Trade and Industry.

She said these sectoral road maps will be part of the Manufacturing Industry Roadmap that will be integrated with the agriculture, services and other sectoral road maps.

Songco said as a result, a Comprehensive National Industrial Strategy will be formulated, spelling out strategies in strengthening the link of these sectors with basic sectors as suppliers or markets, as well as developing local industries to become more competitive in preparation for greater regional and global integration.

“The manufacturing subsector’s potential for innovation, value adding and backward linkage with the agriculture sector—the main source of livelihood of the poor—is expected to drive the economy to a higher growth trajectory, create high-quality employment opportunities and substantially reduce poverty,” Songco said.

Songco said the manufacturing sector has exhibited strong growth in 2013. It contributed 2.1 percentage points of the 7.4 percent gross domestic product growth in the first three quarters of 2013.

She added that the sector employed 3.1 million Filipinos, or 8 percent of the country’s labor force, based on the Labor Force Survey in October 2013.

Songco further said, based on the November 2013 Monthly Integrated Survey of Selected Industries, the country’s manufacturing output increased by 21.3 percent while the value of the country’s manufacturing output grew 16.2 percent.

The Neda official said the growth rate of the manufacturing production for November 2013 is the highest since September 2010, while the value of manufacturing output growth rate is highest since November 2012.

The government’s strategies to revive the manufacturing industry are included in the Updated Philippine Development Plan 2011-2016, which aims to sustain, if not surpass, the country’s recent economic success. –Cai U. Ordinario, Businessmirror