The Philippine (PH) manufacturing industry is continuing its breakout story. With the recently released Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) for October showing the index jumping to a 10-month high of 54 for the month from 52 in September, the country’s manufacturing sector has shown signs of stronger expansion. The report indicates an increase in demand for manufactured goods in the country, with several firms reporting an influx of new orders.

 

We can see the continued confidence on the strong fundamentals of the PH economy and all its reforms and infrastructure development programs under the Duterte administration.  Investments continue to drive growth, amid robust Foreign Direct Investments (FDI) as per the Board of Investments’ (BOI) latest data.

 

Investors see the political will of the current administration to institute reforms such as the recently passed Ease of Doing Business law, and policies leading to further liberalization of more sectors to allow greater foreign equity. The country’s demographics are also improving, with a growing middle class in a 106 million Philippine market, who are young and have greater purchasing power.

 

Investment promotion policy is key in creating more jobs and business opportunities that will spread more prosperity and enable more Filipinos to beat poverty. Investments, especially in manufacturing, are what we need to boost our manufacturing base that will also expand our capacity to export and solve the perennial structural issue of having a trade deficit for the past many decades.

 

We need to work together to attract more investments and address all roadblocks to achieving a competitive industrial structure such as power costs, logistics costs, greater access to major agricultural inputs to many industries like sugar and agriculture supply at competitive prices.♦