Federation of Philippine Industries (FPI) chairperson Elizabeth Lee urged the government to provide stronger support for the manufacturing sector as global economic shocks intensify, warning that rising energy costs and supply chain shifts are threatening the nation’s stability.
Lee said these pressures are directly affecting the Philippines, with higher oil prices driving up costs across power, transport and food, while global instability threatens the flow of remittances from abroad.
More than 10 million Filipinos work overseas, sending over $35 billion in remittances in 2025. This accounts for about 7 percent of the economy and supports household spending and small businesses.
The country’s dependence on imported fuel continues to expose industries and consumers to price volatility, which Lee said raises production costs and weakens domestic demand.
She cited the need to strengthen manufacturing, which currently accounts for about 16 percent of the economy and supports millions of jobs.
“Manufacturing is where value is created and jobs are generated at scale,” Lee said.
Regional peers such as Vietnam and Thailand have expanded manufacturing to over 25 percent of their economies, successfully attracting major investments.
Lee said the race for industrial capital is intense and favors countries that offer stability, skills and competitiveness.
The FPI is pushing four priorities to capture these opportunities: boosting competitiveness through reforms, investing in skills and training, adopting automation and sustainable production, and shifting to higher-value manufacturing. Lee said the Philippines can achieve this by improving policies, infrastructure and workforce capabilities.
Lee also cited the need for stability in key trade routes such as the South China Sea and the West Philippine Sea to ensure reliable supply chains.
“We must not only trade with the world – we must produce for it,” Lee said.
