A Manufacturing policy brief entitled Manufacturing: Creating Millions of Better Jobs, authored by Bobby Batungbacal and John Forbes of the American Chamber of Commerce, was presented during a press conference last Dec 5, 2013, at the Elks Club, Corinthian Plaza, Makati City. Here are the highlights of the brief:
The overall objective of reforming the manufacturing sector is to achieve a paradigm shift, breaking out of the cycle of low or no growth in manufacturing employment and moving up the scale of higher-value manufacturing, while also reviving labor-intensive manufacturing to take advantage of the country’s demographic dividend.
• Create an average of 500,000 new jobs a year in manufacturing beginning in 2015 for a total of 4 million by 2022.
• Attain 30% of GDP share of manufacturing by 2022.
• Shift 4 million unemployed and underemployed workers to productive manufacturing sectors.
• With a multiplier effect of 3 indirect jobs per new manufacturing job, 16 million
Filipinos will benefit.
• Create incentives to revive labor-intensive manufacturing by encouraging firms to locate in D/EEZs in less-developed regions with abundant low-cost labor and logistical connections to export ports.
• Make production costs competitive with Cambodia, Indonesia, and Vietnam through
temporary incentives for manufacturing firms who locate in D/EEZs.
• Local officials should agree not to interfere in D/EEZs.
• Upgrade/diversify high-value manufacturing where the Philippines is competitive.
The Manufacturing policy brief was sponsored by twenty local and foreign business groups, namely: American Chamber of Commerce of the Philippines (AmCham), Australian New Zealand Chamber of Commerce of the Philippines (AnzCham), Canadian Chamber of Commerce of the Philippines (CanCham), Chamber of Furniture Industries of the Philippines (CFIP), Confederation of Garment Exporters of the Philippines (CONGEP), European Chamber of Commerce of the Philippines (ECCP), Employers Confederation of the Philippines (ECOP), Foreign Buyers Association of the Philippines (FOBAP), Garment Business Association of the Philippines (GBAP), Japanese Chamber of Commerce and Industry of the Philippines (JCCIPI), Korean Chamber of Commerce Philippines (KCCP), Management Association of the Philippines (MAP), Philippine Association of Paint Manufacturers (PAPM), Philippine Chamber of Commerce and Industry of the Philippines (PCCI), Philippine Exporters Confederation (PhilExport), Philippine Oleochemical Manufacturers Association of the Philippines (POMA), Philippine Plastics Industry Association (PPIA), Semiconductors and Electronics Industries of the Philippines (SEIPI), and Samahan sa Pilipinas ng mga Industriyang Kimika (SPIK).
It was a result of a series of focus group discussions with a wide range of manufacturers, industry representatives, leading economists, government leaders, export zone developer, labor experts and consultants. The brief will be submitted to government agencies and each member of Congress. To view or download the brief, go to the Arangkada website.