To be able to sustain the growth of the economy, the government will continue its appropriate policy prescriptions, which focuses on the development of the major sectors in the Philippines, the Socioeconomic Report (SER) 2010 to 2012 said.

SER stated that the country will pursue a balanced growth policy that would harness the services sector as the country’s largest contributor to the economy at present, as well as the industry sector, which has untapped potentials and substantial room for improvement.

“To catch up with the targets in the PDP [Philippine Development Plan 2011 to 2016], the government will continue to partner with the private sector in developing the industry and services sectors,” the report noted.

It stated that the government will continue to boost the competitiveness of the production sectors.

The innovation policy, programs, projects and activities under Filipinnovation program will continue to be pursued.

Also, SER said that the sustained development of the agricultural sector remains critical to achieve the overarching goal of inclusive growth and poverty reduction, particularly in the rural sector.

“The crop subsector will continue to be a major contributor with further improvement in the crops productivity, access to domestic and international markets, expanded area. This will be supported by responsive, effective and efficient agricultural services,” the report said.

On the other hand, it mentioned that the fisheries sector will adopt a triple strategy of regeneration, protection, and sustainable production such as the establishment of mariculture parks, nurseries and hatcheries.

In terms of competitiveness, SER said that the high cost of doing business remains a major concern for investors.

The report asserted the high cost of doing business in the country has been a major deterrent in attracting investments in the industry and service sector and in making Philippine products competitive, adding that it also affected the development of small and medium enterprises.

Furthermore, SER reported that Philippine exports also remain vulnerable to fluctuations in market demand, because of the over dependence on existing export products, particularly electronics and traditional markets.

The report said that exports diversification remains an issue because of the lack of human resources with proper education and right set of skills.