DTI: Growth in manufacturing sector is 'no fluke'
MANILA, Philippines - The Department of Trade and Industry (DTI) sees a continued growth in the country's manufacturing sector for the rest of the year.
In a statement, Trade Secretary Gregory Domingo said the first half growth of manufacturing sector of 9.9% is sustainable.
"This is not a fluke. There are many manufacturing plants being constructed. As these plants open, it will continue to boost our manufacturing numbers," he said.
Data from the NSCB showed manufacturing sector grew by 9.9% in first half of 2013, almost doubling 5.1% growth in the same period last year. It even surpassed the services sector, which grew by 7.1%.
Chemical and chemical products, food manufacturing, radio, TV, and communication equipment and furniture drove growth in the manufacturing sector in the second quarter.
Domingo said there is currently a much wider manufacturing base. He noted several non-electronics manufacturing plants have been built in the last three years, such as makers of high quality optical lenses, printers, medical devices, toys, and garments. There were also investments and expansion in the consumer goods sector.
He cited the increase in foreign direct investments (FDI), which amounted to $2.2 billion in the first half of 2013. Approved investments by investment promotion agencies surged to $398 billion from January to August 2013.
Domingo said such growth in investment inflow is supported by construction of additional spaces for business process outsourcing and expansion of industrial parks.
The DTI chief also reported an increase in inbound missions, with 850 visits conducted in the first half of 2013. Last year, there were 1,765 inbound missions.
He said that such increase in investments could be sustained through improved business environment in the country, the low inflation rate of the country which is at average 2.9%, Philippine cheap labor cost against its neighbouring countries, and the good governance agenda undertaken by the government. (END)