The Trade Department asked large foreign manufacturers and importers to set up manufacturing operations in the Philippines.
“There are some products we believe can be manufactured here. Right now, we’re having consultations to see if we can work it out with a foreign brand or a multinational corporation instead of them selling to the Philippines and us importing from them,” said Trade Secretary Ramon Lopez.
Lopez said these companies could establish up a plant in the Philippines and make it a hub for come of its products or create toll manufacturing agreements with potential partners.
The agency said manufacturing plants would have domino effect on employment and enhance the Philippine capability to produce.
The Trade Department is initially looking at the pharmaceutical industry as a possible candidate for a newly proposed manufacturing strategy.
The Philippines is a net importer of medicines. It imports heavily from different sources but the bulk of them are sourced from India.
Lopez said industrial zones were important for manufacturing to move forward with the industry, academe and government sharing the brunt of work needed to revitalize the manufacturing sector.
“There is a need to incentivize research, development and innovation. Perhaps tax deductibility and other programs like technology matching and exhibits will help the manufacturing industry develop its potential,” he said.
Lopez said the incentives given by the Philippine Economic Zone Authority would be maintained to continue to attract more investors to the Philippines.
Manufacturing as an economic activity has increasingly contributed to the Philippine economy with the Trade Department pushing for a 25-percent contribution of manufacturing activities to the gross domestic product in the near term.
The Department expects the manufacturing sector to grow by 10 percent in 2017.