THE holidays will bring cheer not only to Filipino children, but also to the local manufacturing sector, which is badly in need of a performance booster, according to the National Economic and Development Authority (Neda).
The Neda made the pronouncement after the Philippine Statistics Authority (PSA) reported on Tuesday that the country’s manufacturing output declined for the 10th consecutive month in September.
The PSA’s Monthly Integrated Survey of Selected Industries (Missi) showed that the Volume of Production Index (VoPI) contracted 3 percent in September, a reversal from the 1.3-percent increase recorded last year.
“Despite the slowdown in the overall performance of the manufacturing sector for September, we have observed improvements in various subsectors which can be attributed to the upcoming holiday season alongside lower inflation, stable exchange rate, and lower interest rate,” Neda Officer in Charge (OIC) and Undersecretary for Regional Development Adoracion M. Navarro said in a statement.
To boost the manufacturing sector over the near term, Navarro said high-impact and “implementable” infrastructure projects under the “Build, Build, Build” program must be rolled out.
Navarro said this will sustain the demand for construction-related manufactures as more infrastructure flagship projects reach the construction phase.
As construction kicks off, more Filipinos will have jobs and will see a higher disposable income, which could leave to an increase in demand for consumer goods.
“We need to sustain infrastructure spending to achieve the national government’s target disbursement performance for the year. An extension in the validity of the 2019 budget, and the timely passage of the proposed 2020 national budget should be considered to avoid delays in the implementation of construction-related projects and activities,” said Navarro.
Citing the need to strengthen linkages between manufacturing and agriculture, Navarro said the government also needs to scale up efforts to improve Shared Service Facilities (SSFs).
This, she said, will help farmers consolidate and engage in higher value-adding activities, which can also contribute to the expansion of the manufacturing sector.
Removing regulatory bottlenecks and ensuring faster turnaround periods for processing and issuance of clearances, permits and other required certifications will also help manufacturers.
Image credits: Nonoy Lacza