Tuesday, June 28, 2022
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business Economy & Trade

Garments makers warn of shutdown, mass layoff

Othel V. CamposbyOthel V. Campos
July 21, 2019, 7:55 pm
in Economy & Trade
Reading Time: 2 mins read
A A
72
SHARES
Share on FacebookShare on TwitterShare on Email

Garments and leather goods manufacturers warned of factory shutdown and mass layoff once the government enacts a version of the proposed Tax Reform for Attracting Better and High-quality Opportunities, or Trabaho bill, that will raise the tax rate on gross income earned to 8 percent from 5 percent.

The Confederation of Wearable Exporters of the Philippines said about 110,600 workers in small and medium-scale enterprises engaged in the garments and the leather goods industries might lose their jobs as this sub-sector had not yet attained a decent profit. The garments and leather goods sub-sector employs about 250,000 workers in the country.

“Competitive as they are, my members’ margins are only so much. The recent proposal to increase [GIE] to 8 percent in exchange for other incentives will be disastrous for us. Frankly, the 7 percent proposed by other economic zone locators is way too much of a stretch for us already,” said CONWEP executive director Maritess Jocson-Agoncillo.

Majority of the companies are located in economic zones. About 10 percent of the members are registered with the Board of Investments.

A study commissioned by the group found out that a company with 1,500 workers were prone to immediate shutdown within six months to one year due to small margins.

ADVERTISEMENT

“To those producing mid-size products like jeans, the displacement of workers would be 50 percent in 12 to 18 months. These are medium-sized firms employing 3,000 to 5,000 per factory,” Agoncillo said.

She said for companies producing higher-end products like suits, the displacement threshold would be 30 percent to 32 percent in 12 to 18 months.

The apparel section represented about 68 percent of the sector’s exports amounting to $1.08 billion in 2017.  The figure dropped to $928 million in 2018. Leather goods exports accounted for 31 percent of the total. 

Meanwhile, other industry groups led by the Philippine Ecozones Association said the Philippines would continue to lose opportunities to its neighbors that offer better incentive packages.

“If these investments were not here to begin with, there will be no investors. Many companies have mothballed their expansion plans because of these developments,” said Philea president Chito Zaldarriaga.

Industry groups such as CONWEP, the Semiconductor and Electronics Industries in the Philippines Foundation Inc., the IT and Business Process Association of the Philippines and different foreign chambers supported the call of the Philippine Economic Zone Authority to maintain the status quo on all the incentives.

The groups said tax incentives in the economic zones had led to the creation of more than 7.5 million jobs and over $54 billion worth of exports over the years.

“To remove or even dilute tax incentives granted to locators now would risk the loss over time of millions of jobs and investments that would otherwise have been committed to the Philippines,” the groups said.

Ecozone locators strongly oppose the Trabaho bill which they said would grossly affect the entry of investments and might force employers to cut employment.

Combined foreign direct investments in economic zones dropped 70 percent to P140.24 billion in 2018 from P237.57 billion in 2017.

Tags: Confederation of Wearable Exporters of the PhilippinesCONWEPfactory shutdownGarments and leather goods manufacturersMass layoffTax Reform for Attracting Better and High-quality OpportunitiesTrabaho bill
ADVERTISEMENT
Othel V. Campos

Othel V. Campos

Related Posts

Fitch Solutions sees BSP raising borrowing rate to 3.25% by end-2022

byJulito G. Rada
June 27, 2022, 9:35 pm
0
146
Fitch sees peso-dollar rate falling to 51.80:$1

Fitch Solutions, a unit of Fitch Group, said Monday it expects the Bangko Sentral ng Pilipinas to raise the overnight...

Read more

Central bank chiefs meet to discuss inflation

byAFP
June 27, 2022, 9:00 pm
0
141
Banaag assumes post as Bright Kindle director

Sintra, Portugal—Central bank chiefs and economists will gather Monday evening at their annual forum in southern Portugal to discuss the...

Read more

Rice tariff collections hit P8.35b in 5 months

byJulito G. Rada
June 26, 2022, 6:25 pm
0
159
Agents seize P8.5-million worth of party drugs in Las Piñas

The Bureau of Customs said over the weekend it collected P8.35 billion from rice import duties in the first five...

Read more

Moscow tightens economic grip on southern Ukraine

byAFP
June 26, 2022, 11:30 am
0
156
Banaag assumes post as Bright Kindle director

Little appears to have changed for Alexei Andrusenko, the head of a foundry in Ukraine's southern city of Berdyansk, who...

Read more

DTI reasserts duty in setting price caps

byOthel V. Campos
June 24, 2022, 9:10 pm
0
157
Exporters urged to tap plant-based meat mart

The Department of Trade and Industry upheld the validity of its function to monitor and set price ceiling on important...

Read more

Japan inflation stays at seven-year high in May

byAFP
June 24, 2022, 9:15 am
0
174
Japan inflation stays at seven-year high in May

Japan's core consumer prices jumped 2.1 percent again in May, the second consecutive monthly jump of a level not seen...

Read more

Stories you may like

  • Ex-Naga dad links Leni’s brother-in-law to illegal drugs

    Ex-Naga dad links Leni’s brother-in-law to illegal drugs

    36761 shares
    Share 14704 Tweet 9190
  • Of course, it was BBM’s project

    30882 shares
    Share 12353 Tweet 7721
  • INC endorses BBM, Sara

    28808 shares
    Share 11523 Tweet 7202
  • Duterte’s seven biggest achievements

    21986 shares
    Share 8794 Tweet 5497
  • Marcos leads SWS survey on presidentiables at 50%

    13583 shares
    Share 5433 Tweet 3396

Print Edition

View More

Recent Posts

  • Jordan chlorine gas blast kills at least 12, injures over 250
  • UN Security Council to meet Tuesday over Russian strikes
  • ALLIED CARE EXPERTS (ACE) MALOLOS DOCTORS, INC.: Notice of Annual Stockholders’ Meeting
  • CONCEPCION INDUSTRIAL CORPORATION: Notice of the Annual Stockholders’ Meeting
  • PHILIPPINE SEVEN CORPORATION: Notice of Annual Stockholders’ Meeting
  • 22 tagged in agri smuggling
  • Oil prices move closer to P100/l with new hikes
  • VP’s husband Emhoff leading US delegation to inauguration

Advertisement

Latest News

22 tagged in agri smuggling

byMacon Ramos-Araneta
June 28, 2022, 1:40 am
0
190
Probe sought on smuggled vegetables

Customs chief, DA officials, mayors highlight Senate report’s list A Senate report released Monday has identified Customs Commissioner Rey Guerrero...

Read more

Oil prices move closer to P100/l with new hikes

byAlena Mae S. Floresand2 others
June 28, 2022, 1:30 am
0
151
Another oil price hike

Pump prices moved closer to P100 per liter in Metro Manila, with the latest round of oil price hikes of...

Read more

VP’s husband Emhoff leading US delegation to inauguration

byRey E. Requejo
June 28, 2022, 1:20 am
0
149
VP’s husband Emhoff leading US delegation to inauguration

The husband of US Vice President Kamala Harris, Douglas Emhoff, will lead the American delegation to the inauguration of President-elect...

Read more

COVID tally, serious cases going up

byWillie Casasand1 others
June 28, 2022, 1:10 am
0
182
Shelve caravans for now, UniTeam asks supporters

COVID-19 cases have gone up by more than half in the last seven days, while the number of patients with...

Read more

House planning 100% face-to-face SONA for Marcos, first in two years

byManila Standard
June 28, 2022, 1:00 am
0
149
House caps busy 2021 with P5-trillion budget, vows ‘more fruitful’ 2022 to fight COVID

The House of Representatives is planning to host a 100-percent face-to-face State of the Nation Address for President-elect Ferdinand Marcos...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App