Why Firms Put PH in 'Spotlight of Industrial Investments
MANILA – Growth in the country's manufacturing industry is expected to continue, driven by lower input costs and cheaper labor as compared to other Asia Pacific countries, a study by CBRE Asia Pacific said.
"More companies are putting the Philippines in the spotlight of industrial investments. The country offers low costs in operations and labor, as well as other incentives from the government. Close coordination between the private and public sectors are positively seen by investors who wish for a more efficient and convenient place of operations," said CBRE Philippines chairman and founder Rick Santos.
This year, industrial production in the country is expected to increase by 10.8 percent year-on-year.
A 6-percent increase in private consumption pattern is also expected to contribute to the growing manufacturing industry.
CBRE said foreign investors are becoming more bullish on the country's industrial field, ramped up by the government’s efforts in creating a more profitable environment for operations.
"This is evidenced by the fast take-up of economic zones launched in the previous quarters and the manufacturing growth rate of 7.5 percent recorded last year," CBRE said.
CBRE also cited the Philippines' attractive tax and other investment incentives, affordable and talented labor pool, and cheap rental rates.
It added that more than 300 economic zones nationwide house some of the top global manufacturing and industrial name. Automotive and electronic vehicle (EV) companies from Japan and Germany are also continuously expanding in the country.
The country is also seen to attract electronics and textile production companies to relocate from their traditional base in China.
CBRE said that aside from the entry of multinational companies, the Philippines is also gaining ground as a top exporter in the Asia Pacific.
The Asia Pacific market view reported that exports are expected to increase in all markets this 2015, with export growth to be led by the Philippines (7.9 percent), China (6.8 percent), and Vietnam (6.6 percent).