The government expects the country’s manufacturing sector to post higher growth once the Manufacturing Resurgence Program (MRP) is implemented by various line agencies.
National Economic and Development Authority and Socioeconomic Planning Secretary Arsenio M. Balisacan said the MRP will help improve the competitiveness of local manufacturers.
“The MRP is expected to rebuild the domestic production base and improve competitiveness through innovation in order to compete in the export market. In addition, the government needs to be mindful of infrastructure bottlenecks, and stability of energy supply, likewise, needs be ensured in order to foster a stable business environment,” Balisacan said.
The Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries report showed that the country’s manufacturing output or the Volume of Production Index grew 7.5 percent, while the Value of Production Index grew 4.2 percent in December 2014.
Balisacan said this was due to the robust domestic and sustained exports demands for certain products and services, such as printing, beverages, basic metals, wood and wood products.
“The Philippine manufacturing sector is on a catch-up phase. Reforms undertaken thus far have helped the manufacturing sector get back on track to a higher-growth trajectory,” Balisacan said.
“Moreover, expectations remain high in the first quarter of 2015 due to brighter job prospects, stable prices of commodities, and higher household incomes,” he added.
The PSA also said that average capacity utilization in December 2014 for total manufacturing was recorded at 83.6 percent.
More than 50 percent, or 11 of the 20 major industries, operated at 80 percent and above capacity utilization rates.
The proportion of establishments that operated at full capacity was 24.5 percent in December 2014. About 57.3 percent of the establishments operated at 70 percent to 89 percent capacity while 18.2 percent of the establishments operated below 70 percent capacity.