‘PH can be manufacturing hub’
By Katlene O. Cacho
Sunstar Cebu
Tuesday, March 26, 2013Sunstar Cebu
CHINA’s loss of competitive edge as a low-cost manufacturing base presents opportunities for the rest of Asia to become manufacturing hubs, particularly the Philippines, a real estate expert said.
Professor Enrique Soriano, program director for real estate of the Ateneo Graduate School of Business, said there is need for the Aquino government to pour in more money for infrastructure development and manufacturing to achieve inclusive growth.
“2013 is a banner year for the Aquino administration. The economy is moving forward.
There will be so much leapfrogging this year until 2016,” Soriano said during a recent economic briefing.
But to sustain the economic momentum, Soriano believes government should start releasing and spending its money and implementing long-overdue projects such as those under the public-private partnerships (PPPs).
“PPP will flood markets with jobs and will eventually increase the purchasing power of consumers,” Soriano said. “President Aquino, under his term, was able to stabilize the market. Jobs grew under his watch but he should start spending money to further lift the economy.”
Confidence
It is also high time for the Aquino government to be aggressive in bringing back manufacturing now that confidence in the business is picking up, he added.
Soriano said the country is standing on solid ground in terms of attracting more investments for the labor-intensive sector, considering that the world’s manufacturing hub, China, is no longer known as the “factory of the world” due to labor issues and its ageing population.
“Philippines should campaign for inclusive growth with manufacturing,” Soriano said.
But the Philippines still has a lot of catching up to do with other Asian neighbors in terms of increasing the share of manufacturing to its gross domestic product (GDP).
GDP refers to the total market value of all finished goods and services produced in a country in a specific period of time.
In his presentation, Soriano said Thailand was able to grow the share of its manufacturing sector from 23 percent in 1970 to 43.3 percent in 2009, whereas the Philippines managed to grow from 27.5 percent share to 30.2 percent during the same period.
But Soriano said there have been positive developments in the past years. He said this is reason for government to be aggressive in attracting more foreign direct investments, particularly for the manufacturing sector, as it create more jobs.
He said that the country has so much potential to be the world’s next manufacturing hub, given the quality and quantity of its workforce and its economic standing as one of the Asian countries that managed to grow despite the economic slowdown in the USA and Europe.
Professor Enrique Soriano, program director for real estate of the Ateneo Graduate School of Business, said there is need for the Aquino government to pour in more money for infrastructure development and manufacturing to achieve inclusive growth.
“2013 is a banner year for the Aquino administration. The economy is moving forward.
There will be so much leapfrogging this year until 2016,” Soriano said during a recent economic briefing.
But to sustain the economic momentum, Soriano believes government should start releasing and spending its money and implementing long-overdue projects such as those under the public-private partnerships (PPPs).
“PPP will flood markets with jobs and will eventually increase the purchasing power of consumers,” Soriano said. “President Aquino, under his term, was able to stabilize the market. Jobs grew under his watch but he should start spending money to further lift the economy.”
Confidence
It is also high time for the Aquino government to be aggressive in bringing back manufacturing now that confidence in the business is picking up, he added.
Soriano said the country is standing on solid ground in terms of attracting more investments for the labor-intensive sector, considering that the world’s manufacturing hub, China, is no longer known as the “factory of the world” due to labor issues and its ageing population.
“Philippines should campaign for inclusive growth with manufacturing,” Soriano said.
But the Philippines still has a lot of catching up to do with other Asian neighbors in terms of increasing the share of manufacturing to its gross domestic product (GDP).
GDP refers to the total market value of all finished goods and services produced in a country in a specific period of time.
In his presentation, Soriano said Thailand was able to grow the share of its manufacturing sector from 23 percent in 1970 to 43.3 percent in 2009, whereas the Philippines managed to grow from 27.5 percent share to 30.2 percent during the same period.
But Soriano said there have been positive developments in the past years. He said this is reason for government to be aggressive in attracting more foreign direct investments, particularly for the manufacturing sector, as it create more jobs.
He said that the country has so much potential to be the world’s next manufacturing hub, given the quality and quantity of its workforce and its economic standing as one of the Asian countries that managed to grow despite the economic slowdown in the USA and Europe.
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