A MANUFACTURING-industry summit on Dec. 3 will seek to address slowing growth in the sector and anticipate challenges posed by technology and legislation, the Department of Trade and Industry (DTI) said.
The DTI and the Federation of Philippine Industries (FPI) are organizing the fourth annual manufacturing summit, which will be known as Preparing Philippine Manufacturing for the Future of Production, at The Peninsula Manila in Makati City.
DTI said in a statement Thursday: “The lower growth figures this year pose as a challenge to the manufacturing sector to regroup and look at how to strengthen its core and keep its long-term growth trajectory on an upward path.”
DTI pointed to the 2.4% manufacturing growth posted in the third quarter, down from 3.8% a year earlier.
According to the Philippine Statistics Authority, factory output declined 8% in the first nine months, compared to the 10.6% growth average a year earlier.
The Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) — which uses a different set of variables — fell that month to 51.8 from 51.9 in August and 52 a year earlier.
PMIs point to an expected expansion in manufacturing activity if above 50 and a contraction if below. Purchasing managers’ intentions are considered a leading indicator for manufacturing activity because their raw materials orders signal the expected volume to be processed a few months in advance.
Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica said the main concern for manufacturers in 2020 is the impact of legislation.
“If we pass CITIRA (the Corporate Income Tax and Incentives Rationalization Act), it would have the biggest impact on industry and employment,” he said in English and Filipino. SEIPI, along with other business groups, has been proposing changes to the bill, which aims to reduce corporate income tax while rationalizing incentives.
He said that another issue is the general effluent standards (GES) set by the Department of Environment and Natural Resources and the attractiveness of the Philippines as an alternative to companies fleeing the US-China trade war.
He said the concerns of the manufacturing sector will be the same in 2020 but foresees new opportunities, noting that the rise of technologies like artificial intelligence and autonomous vehicles could be opportunities for electronics manufacturing in the Philippines.
The summit is organized around three sessions.
The first session is a review of Philippine manufacturing in light of the delayed passage of the national budget in 2019, tax incentives, and the US-China trade war. The keynote speaker is Trade Secretary Ramon M. Lopez.
The second session will be keynoted by Agriculture Secretary William D. Dar and hopes to explore how Philippine manufacturing and agribusiness can adapt to the fourth industrial revolution. It also focuses on how micro, small, and medium enterprises can use technology to prepare for the future of production.
The last session, headlined by Labor Secretary Silvestre H. Bello III, will tackle the reskilling and upskilling of workers for the future of jobs.
Delivering the closing remarks is Technical Education and Skills Development Authority Secretary Isidro S. Lapena. — Jenina P. Ibañez
