The Philippines needs to attract more non-business-process outsourcing (BPO) investments from the US, specifically in manufacturing, to help bridge the country’s manufacturing supply-chain gap, the Department of Trade and Industry (DTI) said on Tuesday.
“From the US, we are still getting a lot in the information technology-business-process outsourcing; outside of that, it’s not much, especially in manufacturing, which needs more push,” Trade Secretary Gregory L. Domingo said on Tuesday, at the sidelines of a National Competitiveness Council event.
Domingo said that this will be part of his agenda, as he is set to embark on an investment mission to the US in June.
While there is a move of the Western nation to keep jobs and future expansions—especially in manufacturing—within its shores, the Philippines can still get a share of the investments from labor-intensive manufacturing industries, reasoned the trade chief.
This is a significant point, as the US can join other countries that are now helping narrow the gaps in the local manufacturing supply chain, Domingo said.
“We have subassembly here, and we make mostly intermediate products. We have very few production of finished products like medical devices, but for basic components, they are just beginning to come in,” Domingo added.
Shimano Inc., a Japan-based bicyclye-parts manufacturer, recently set up shop in the Philippines, along with STIHL, a German carburetor maker.
More of these basic component makers are looking at the Philippines now, especially those from Japan and Taiwan, Domingo said. He is hoping US firms can be enticed to follow suit during his investment mission. Basic component makers can further strengthen the supply chain, as they can also lure in their downstream industries for further processing.
The Board of Investments is currently implementing a manufacturing-resurgence program to boost employment numbers and overall competitiveness of the sector.
The trade chief will also be visiting Europe in a separate investment road show in June and, aside
from manufacturing, will be encouraging investments in services and infrastructure.
