THE Philippines looks to be well-positioned for manufacturing activities, as multinationals continue to locate their production facilities in the country.
“Manufacturing activity [is seen] to continue treading an upward growth trajectory through 2015, with foreign investors becoming more bullish toward the country, given the government initiatives to market the industrial sector,” said Kash Salvador, investment and capital markets manager at CBRE Philippines.
Data from the National Statistical Coordination Board revealed that the manufacturing sector accounted for the bulk of foreign direct investments in the country, at 60.01 percent.
Poised to benefit from it, Salvador said, is the real estate’s industrial sector.
He noted that the increase in industrial production and capacity utilization prompts manufacturers to expand factory space in the country.
Primarily, the steady influx of foreign locators could be attributed to cheap industrial space rates, Salvador said.
Monthly lease fees in Clark Field, Pampanga, for instance, are pegged from P130 to P220 per square meter.
In both Subic and Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), the range is from P80 to P260 per sq m.
Apart from comparable rental charges, competitive work force is what also elicited a vigorous industrial sector here, he added.
Salvador noted, though, that Manila’s outskirts should be further developed into areas for industrial growth as space in established industrial parks and economic zones is mostly occupied.
Concerted public works from both the state and business community also help buttress the expansion of investments and manufacturing in the country, he pointed out.
“Collaboration projects between public and private corporations in improving the Philippines’s infrastructure are needed to sustain and support the reemergence of the manufacturing industry,” he added.
