PH factory output down for 11th straight month
Credit to Author: Anna Leah E. Gonzales| Date: Tue, 07 Jan 2020 16:26:51 +0000
THE country’s manufacturing output, both in value and volume, continued to decline for the 11th consecutive month in November, the Philippine Statistics Authority (PSA) reported on Tuesday.
In its latest Monthly Integrated Survey of Selected Industries, the statistics agency said factory output, as measured by the value of production index, slid to 5.8 percent in November from the 4.7-percent contraction in October and the 2.3-percent expansion a year earlier.
Almost half of the 20 major sectors reported decreases: basic metals (-36.2 percent), petroleum products (-25.6 percent), miscellaneous manufactures (-20.7 percent), transport equipment (-20.6 percent), electrical machinery (-16.6 percent), (-7.0 percent), wood and wood products (-2.1 percent), furniture and fixtures (-1.2 percent), and paper and paper products (-0.2 percent).
The value of production index, meanwhile, shrank to 6.1 percent in November from the 4.0-percent decline in October and the 1.9 percent increase year-on-year.
Sectors that saw declines were electrical machinery (-13 percent), petroleum products (-21.8 percent), basic metals (-29.5 percent), transport equipment (-16.7 percent), miscellaneous manufactures (-22.1 percent), furniture and fixtures (-41.2 percent), non-metallic mineral products (-2.6 percent), and textiles (-1.6 percent).
To improve production, the National Economic and Development Authority (NEDA) said an innovation-driven industrial policy was needed.
In a statement, Socioeconomic Planning Secretary Ernesto M. Pernia stressed the importance of such a policy, saying “[i]ndustries need to be encouraged to innovate and adopt efficient technologies.”
This is a key strategy to entice more investments, similar to the experiences of the country’s Asean (Association of Southeast Asian Nations) peers such as Thailand, Malaysia and Vietnam,” he added.
According to the NEDA chief, the passage of the 2020 budget on Monday was a welcome move in ensuring the continuity of critical government projects.
“The signing of the 2020 budget into law by the President (Rodrigo Duterte) ensures the continuity of projects aimed [at attracting] local and offshore investments to boost growth and create more and quality employment opportunities for Filipinos,” Pernia said.
The passage of the Corporate Income Tax and Incentives Rationalization Act and the proposed amendments to the Foreign Investments Act, the Public Service Act and the Retail Trade Act are critical to eliminate policy uncertainties that affect the country’s business climate, he added.