The Philippines posted a twofold surge in manufacturing investments last year to $1.15 billion, Trade Secretary Ramon M. Lopez reported on Wednesday.
Investments in the manufacturing industry rose by 244 percent, from only $334.25 million in 2016. Lopez said it accounted for at least 35 percent of the total 2017 equity capital placements at $3.3 billion against 13 percent of the total 2016 equity capital placements at $2.59 billion.
Lopez noted manufacturing continues to deliver well for the economy, as the government is banking on it to become the pillar of economic growth in the country.
He added the sector was receiving intensified backing since 2012 from the Department of Trade and Industry, which, for its part, is linking the government with private entities to bolster manufacturing.
“It is a highly viable investment area and a source of meaningful and well-paying jobs for the people,” Lopez said of the industry. “Investor confidence [in manufacturing] is real.”
The trade chief also said investors continue to trust the country in terms of its growth prospects, highlighted by the steady progress of its economy in recent years. “The Philippines continues to be a magnet for investments, and this is due to the country’s improving business environment, sound macroeconomic-policy reforms, aggressive infrastructure buildup, much-improved peace and order and political stability, favorable demographics, growing middle class and consumer base and, of course, our people, who have always been the country’s prime asset in attracting foreign investments,” he said.
Lopez’s statement came days after the Bangko Sentral ng Pilipinas reported that the country hit a record-high foreign direct investment (FDI) of $10.1 billion last year. This was 21.4 percent higher than the $8.3 billion in 2016.
At least 21 industries benefited from the FDI inflows, with over a third of total equity placements put in manufacturing. On the other hand, gas, steam and air-conditioning supply; real estate; construction; and wholesale and retail trade received bulk of total investment inflows.
On top of this, the government identified food manufacturing and production of radio, television and communication equipment and apparatus as potential sunrise sectors for manufacturing. Chemical and nonchemical products, fabricated metals and basic metal and nonmetallic minerals were also seen as vibrant outputs of the industry.