The Federation of Filipino Industries (FPI) urged the government to intervene and revive the country’s manufacturing sector by promoting economies of scale, lowering business costs and creating transparent policies.
These measures, the group said, are necessary to allow local manufacturers to compete with imported goods.
FPI chairman Beth Lee said the Philippines once had a strong automotive assembly base, but high power and labor costs, taxes and logistical hurdles have eroded its competitiveness, prompting manufacturers to move operations abroad.
“In automotive manufacturing, you cannot expect one country to do everything from zero to ten,” Lee said.
“But when we had a local assembly of pickup trucks, we had both supply and demand working in our favor,” she said.
That industry no longer exists, she said, adding: “If we want manufacturing to grow again, we must safeguard it through economies of scale and cost competitiveness.”
Lee also warned that the textile sector faces similar risks, with some factories considering relocating to Vietnam where operational costs are lower.
Rey Go, owner of Columbia International Foods and an FPI board director, said the food manufacturing sector still holds potential due to the country’s 115 million consumers. However, he cited the need for a “level playing field.”
Go cited sugar as an example, where local manufacturers are forced to buy sugar at nearly double the world market price, while imported candies containing sugar enter the country duty-free.
“How can we compete?” he asked. “That is why brands like Ovaltine and Halls have left the Philippines. We are among the few locals left.”
He urged the government to enforce greater transparency in infrastructure and regulatory agencies, stabilize input costs, and actively promote local products.
Both officials agreed on the need for a comprehensive industrial strategy, including government-backed transport modernization that prioritizes local vehicle assembly. Go proposed that the government subsidize the purchase of locally assembled jeepneys and lease them to drivers to both sustain domestic manufacturing and ensure efficient commuting.
