Socio-economic Planning secretary Ernesto Pernia has cited the importance of digital solutions that would reduce logistical bottlenecks, boost the expansion of market access, and improve labor productivity in the country.
Improving telecommunication services and building technical capacity and skills of the workforce both in the private and public sector will be crucial in the implementation of government projects, according to Pernia.
He also cited efforts in Congress to amend the Foreign Investment Act of 1991 as a step in the right direction as this can facilitate technology transfer and provide opportunities for domestic manufacturing firms to integrate into the global value chain.
Pernia said increasing efforts to promote technology and innovation through the adoption of digital solutions across economic sectors and the amendment of the Foreign Investment Act of 1991 will prop up the manufacturing sector in the long run.
A speedy implementation of infrastructure projects is also seen to help sustain demand for construction-related manufactures towards the end of 2019, he said.
“The completion of infrastructure projects will improve transport and logistics, crucial in supporting the manufacturing sector. An extension in the validity of the 2019 budget, particularly for infrastructure projects, and the immediate passage of the proposed national budget for fiscal year 2020 will assure sustained implementation of construction-related projects and activities,” Pernia said.
Pernia added that infrastructure projects are seen to contribute to the increase in employment and disposable incomes, which will result in increased demand for consumer goods.
“Fast-tracking the implementation of infrastructure projects will help the manufacturing sector recover even with less optimistic business outlook as uncertainty in the global market remains,” said Pernia.
Pernia said he is optimistic that domestic demand is seen to be more favorable in the third quarter of 2019, with production of consumer goods such as food and beverages, tobacco, footwear and wearing apparel, and furniture and fixtures are expected to increase. — Edu Lopez