The Philippine Institute for Development Studies (PIDS) said on Wednesday the government should provide incentives to attract companies to invest in the country, as well as suggesting that there should be council or institutes for some industry groups to boost manufacturing performance.
According to the study on manufacturing and industries, PIDS acting vice president Rafaelita Aldaba said that the manufacturing sector lack “structural transformation” from the legislative branch with the p
“We really need to transform the manufacturing and industry of the Philippines,” Aldaba said, referring to the Philippines lagging behind in manufacturing and industry among countries in the region at present.
For productivity of the sectors, Aldaba cited that there should be “cluster-based interventions” of the local, regional and branches of the national government such as increasing supply of skilled workers; encourage technology adoption; and further improving regulations and infrastructure buildings.
In the study, Aldaba listed the recommendations to the government in her study in order to improve the manufacturing and industry sector. Aldaba’s research compared thirty years of “stagnant growth” of the country from other neighboring countries, which continued to grow upwards, leaving the Philippines behind in manufacturing and industries segment.
She recommended that the government, especially the legislative branch, should mandate “temporary fiscal and non-fiscal incentives” among businesses to further attract foreign firms and investors to put their manufacturing arms in the country, as well as recommending to have councils or institutions to rationalize and organize some industry groups such as auto, chemicals, electronics, food, copper and iron and steel among others.
Further, Aldaba said that research and development, skills training, as well as small and medium enterprises (SME) expansion and innovation should be observed.
Kristyn Nika M. Lazo