Intensive industry development, more focused incentives

The Philippines will pursue an intensive industry development and offer a more focused incentive package to attract more investments that would enable exports to post an annual growth of 16 percent with $109.4 billion revenues in 2016.

Margarita Songco, deputy director general of the National Economic and Development Authority (NEDA), said this strategy
is included in the Philippine Development Plan (PDP)  2011 to 2016, highlighting the role of export industry and services in achieving an inclusive growth.

“The export sector will not only serve as catalyst of growth but also help the country overcome the challenges of inclusive growth,” Songco said during the second-quarter general membership meeting of the Philippine Exporters Confederation, Inc. (Philexport).

Songco identified these key industry areas as the business process outsourcing (BPO), electronics sector and agribusiness and forest-based industries.

These also include other high-growth potential industries such as homestyle products, wearables, motor vehicle parts and components, garments and construction and related materials.

Songco said the government would partner with the private sector in undertaking measures to harmonize the educational system with the changing needs of the industry, for training and opportunity building, and to expand the development of
“Next Wave Cities”.

On the other hand, the electronics sector, the country’s top dollar earner, will continue to be supported with high-level investment missions, integration of the electronics industry and the establishment of human competencies throughout the value chain.

Songco said the Philippines would also enhance efforts towards attracting new players in the potentially competitive sub-industries such as solar cells, growing capacity in integrated circuit (IC) design together with the country’s collaboration with Taiwan.

The agro-based export products would also be expanded through inbound business matching, international promotional events, compliance with international standards, and development of higher value-added products for exports.

“The government will also be vigilant in nurturing industries that post potential in domestic and export market demand, job generation, utilization of local talents, and creativity and maximization of the total value chain,” she noted.

In these high-growth potential industries, aggressive export promotion through international trade fairs and initiatives to increase market access will be pursued.

Apart from focusing intervention in these key areas, Songco said the PDP 2011-2016 has also identified other strategies crucial to increasing the country’s exports revenues.

These are moving-up the value chain to double exports, strengthening the national brand or identity awareness, pursuing cluster development and increasing market access.

“The government will initiate and mplement a national branding and marketing campaign to promote the Philippines not only as an investment site and tourist destination but as a producer and supplier of quality world-class products and
services,” she added.

Songco explained that the industry cluster program would link different industries and strengthen collaborative networks
among them.

Industry clusters would ensure that top export products or revenue streams are sustained through the development of
value chains down to the provinces and municipalities.