InterAksyon.com
The online news portal of TV5
MANILA, Philippines -- Assemblers and car parts makers are calling on the government to craft policies in preparation for the Association of Southeast Asian Nations (ASEAN) single market, which begins in 2015.
“Auto and parts manufacturing in the Philippines is both viable and sustainable. An ambitious but realistic strategy can take it to the next level,” Feliciano Torres, chairman of the Philippine Automotive Competitiveness Council Inc. (PACCI), said.
"To achieve that, we must develop and sustain a public-private partnership (PPP) that creates reforms and public policies that support industry development and encourage investment,” Torres said.
He said plans for the Philippines’ entry into the ASEAN single market should also be aimed at minimizing the impact of supply chain disruptions especially in other parts of the region.
The Philippines’ auto sector suffered a four percent drop in 2011 sales as flooding in Thailand disrupted the ASEAN’s logistics network.
“We need to act quickly because there is huge opportunity to grow the domestic vehicle and parts sectors and create jobs,” Torres said.
According to a 2010 study by Dr. Cid Terosa of the University of Asia and the Pacific (UA&P) School of Economics, a “one-peso increase in consumption or investment spending for motor vehicles will result in P3.67 worth of additional output in the economy.”
In addition, P100 billion worth of investments in the domestic automotive manufacturing industry is estimated to generate at least 169,061 new jobs.
The study also revealed that the output multiplier of Philippine automotive manufacturing is greater than that of all the investment priority industries of the Department of Trade and Industry (DTI), including tourism, business process outsourcing and information technology services, electronics, mining, housing, and agribusiness.
PACCI is composed of assemblers Ford Motor Company Philippines, Honda Cars Philippines, Inc., Isuzu Philippines Corporation, Mitsubishi Motors Philippines Corporation, and Toyota Motor Philippines Corporation, as well as of the Motor Vehicle Parts Manufacturing Association of the Philippines.
