THE Board of Investments (BoI) said it has approved an application by Maison Galuchat Inc., a Mandaue City-based micro enterprise, to set up a furniture-manufacturing project worth P9.13-million.
Maison seeks to manufacture furniture and accessories and export 100 percent of the production to Asia, Europe and the United States. The company will employ 53 workers initially and will hire up to 120 more personnel by 2022.
Trade Undersecretary for Industry Development and BoI managing head Ceferino Rodolfo welcomed the approval of the project, saying on Monday, “this will further heighten the country’s positioning as a global hub for furniture manufacturing.”
Under the 2017-2019 Investments Priorities Plan (2017 IPP), production of export products is a business activity eligible for BoI registration under Export Activities, making it qualified for fiscal and non-fiscal incentives.
The Chamber of Furniture Industries of the Philippines Inc. (CFIP), a national group of companies, chapters and affiliates that work together to promote and develop the local furniture industry with the guidance of the BOI, earlier crafted the Furniture Roadmap, which envisions the Philippines as a global furniture manufacturing hub by 2030.
“To meet this target, the agency has been supporting the local furniture industry in stepping up efforts to make their products even more competitive in the international market,” it said.
The local industry has engaged in various programs that can help further advance the skills involved in creating consistently stylish, up-to-date designs, maintaining quality control in its products, and through innovatively using local, sustainable materials.
CFIP said that the main strength of the industry is its local design, especially the parts and pieces that use sustainable materials or indigenous components such as abaca, bamboo, coco coir, buri and piña fiber.
The project is also the first by micro and small enterprises (MSE) approved by the BoI Cebu Extension Office.
The BoI board of governors has delegated the processing and approval of applications for registration of MSE projects to the division chiefs/officers-in-charge of the BoI extension offices in the Visayas and Mindanao.
“The BoI wants to speed up the application and registration process for MSEs to encourage them to be more competitive and innovative as they participate in the global value chains” Rodolfo said.
Relevant data indicated that of the $347 billion value of world production of furniture in 2012, 0.2 percent was accounted for by the Philippines, which shows there is room for the industry to grow.
The BoI said the industry intends to increase its share of the global market to 2 percent this year. Under the roadmap, the plan is for the country’s furniture exports to rise by 7 percent per market and to climb further by 10 percent this year.
Furniture and fixture exports have steadily increased in the last six years. Figures from the Philippine Statistics Authority showed that from $131.87-million worth of exports in 2011, the amount grew to $202.14 million as of December 2016.