A LOT of attention has been given to the services sector, particularly in the BPO industry, as the bright spot in our economy. Undoubtedly, it does generate a lot of much-needed employment for the better educated segment of our work force in highly urbanized areas. However, this is not enough to bring our country out of our Third-World status. We need to industrialize if we ever hope to catch up with our more developed neighbors.
It is for this reason the Federation of Philippine Industries (FPI) will be holding the “First Philippine Manufacturers and Producers Summit” on Thursday, Nov. 24, 2011 at the Intercontinental Manila, Makati City. FPI is the umbrella organization of manufacturers and producers in the Philippines. It is composed of 41 industry associations and 90 corporate members who are local manufacturers and producers of various industrial, consumer and agricultural products.
The summit will gather government representatives and policy makers, economists, businessmen, industrialists, academe, labor sector representatives and other international agencies to raise issues, public awareness and highlight the strategic importance of the local manufacturing and production sectors. Among the confirmed speakers are Trade Secretary Gregory Domingo and Undersecretary Adrian Cristobal, Philippine Institute of Developmental Studies President Dr. Josef Yap, ADB Senior Country Economist Dr. Norio Usui, Dr. Federico Macaranas from the Asian Institute of Management with officers and members of the Federation of Philippine Industries.
Industry creates jobs not only for the highly educated in the labor force but offers work opportunities even to those that have not been able to complete their formal education. Industry can locate itself not just in highly urbanized areas but in less developed areas where raw materials, land or other primary inputs may be more readily available. Industry pays more local and national taxes and creates upstream and downstream businesses in the process. Industry also pumps in a lot of capital into the local economy on a more permanent basis.
This manufacturing summit hopes to generate interest and discussion between the government and the private sector on advancing and giving priority to the Philippine manufacturing sector including agri-business. With such strategic collaboration, this will enable manufacturing and production to realize its full economic multiplier potential, generate jobs and create growth and prosperity for more Filipinos. Industry leaders will be sharing their success stories and challenges in the domestic and export markets, and give their recommendations and vision for the manufacturing and production sectors in the Philippines.
Among the challenges facing the manufacturing industry is the very high cost of power, which is already the highest in Asia. Structural flaws in labor policies that creates a very high unemployment and underemployment rate while forcing annual increases in minimum wage laws and security of tenure without the corresponding productivity and profitability in return. Difficult and demanding regulatory requirements in licensing and permits, which in one recent study puts the Philippines as the fourth most difficult place in the world to do business. Insufficient infrastructure, particularly transportation, makes it not only expensive but inefficient for business to operate in most part of the Philippines. Another big issue that is holding back the development in large segments of the country is the peace and order situation which needs to be addressed immediately and on a more permanent basis.
Should you wish to register for this important and interesting summit, you may get in touch with the FPI secretariat at 722-3409, 722-9737, 727-4359 or 584-9642. We should not give up on Philippine manufacturing, it may be our only hope in becoming a developed country.
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