The government should craft policies for the country’s manufacturing industry that support efficiency and enterprises with a drive for excellence, a top executive of SteelAsia Manufacturing Corp. said.
“In a competitive, market-driven environment, industrial policies must be…in favor of the efficient, of the technologically driven, of the enterprises driven by a passion for excellence,” SteelAsia Chairman and CEO Benjamin Yao said at the recent Manufacturing Summit 2017 at Fairmont Makati hotel.
“It is ultimately futile to try and keep balancing the interests of the uncompetitive with those of the competitive, the inefficient with those of the efficient. The market will decide,” he added.
Those venturing into manufacturing must be inclined to build strong partnerships not only with suppliers, but also with customers.
“Under present conditions, no enterprise can be an island. Those with the best synergies will thrive. Those that fail to build linkages from the start will perish,” Yao said.
After the manufacturing sector showed impressive growth in the first nine months of 2017, the Department of Trade and Industry (DTI) said the industry would continue to outperform its Southeast Asian neighbors, thanks to rosy business conditions in the country, coupled with sound economic fundamentals and industrial policies and programs.
The Philippine Statistics Authority (PSA) reported that the economy grew 6.9 percent, pushed in part by a robust manufacturing industry that expanded by 9.4 percent and increased its share of gross domestic product (GDP) by 22.4 percent in the third quarter.
The growth was one of the fastest in the region, outpacing that of China (6.8 percent), Malaysia (5.8 percent) and Singapore (4.6 percent).
Trade Secretary Ramon Lopez said that, thanks to this increase, a 10-percent growth for the sector can be achieved next year.
“Next year, we’re looking at 10 percent or [11 percent], because we already achieved a 9.4-percent [growth in manufacturing],” he said..
“If we already achieved that 9.4, then we can sustain it to 10 [percent]or 11 percent. But we have to really put programs and implement policies that will push manufacturing forward,” he added.