ASEAN Regional News

[swahi]

Originally Posted by crappypants

because food and other commodities are cheaper in THailand and Vietnam.
vietnam is a socialist country so there is a more even distribution of weath.
though the salaries are about the same , their money will stretch farther .
We get killed on our electricity rate. Just paying for electricity alone will consume your entire budget in the Phils. Thai and Vietnam are also food exporters now , it doesn't help that we're multiplying like rabbits pushing up demand for everything doesn't help abate price increases

Its because we multiply like rabbits that's why our government is putting all their hopes on the OFW/OCW dollar remittances rather than try to develop the industrial sector of the country, any sector that is manufacturing based. This short sightedness started over 2 decades ago. I agree that we shouldn't wait for the government to provide the incentives to encourage the development of the manufacturing sectors, but it would help if our government doesn't do anything stupid to create a DISINCENTIVE for companies to set up their manufacturing here.

[702flyguy]

Its all of us to blame, "Colonial mentality" Foreign is always better, this is a wrong mentality. We should appreciate Filipino made products and manufacturers should improve there quality.

[jpdm]

Originally Posted by swahi

Its because we multiply like rabbits that's why our government is putting all their hopes on the OFC/OCW dollar remittances rather than try to develop the industrial sector of the country, any sector that is manufacturing based. This short sightedness started over 2 decades ago. I agree that we shouldn't wait for the government to provide the incentives to encourage the development of the manufacturing sectors, but it would help if our government doesn't do anything stupid to create a DISINCENTIVE for companies to set up their manufacturing here.

Well said sir!

I definitely agree!

[jpdm]

Originally Posted by 702flyguy

Its all of us to blame, "Colonial mentality" Foreign is always better, this is a wrong mentality. We should appreciate Filipino made products and manufacturers should improve there quality.

Agree!

[Asturiano]

The Philippines can be consider newly industrialized country and still be called poor because industrialization doesn't mean that our country is rich, it only mean that we are already reach the first step to get there but still but far way to finally made it through. The thing is the majority of Filipinos is still untouch by capital market,there are some changes in our economy but so far only the wealthy are benefiting from it. As result of this, the gap between the rich and the poor is becoming wider. We can only say that the Philippines has finally made it through if the gap between rich and the poor become closer, an increase to the middle class population and the quality of living for the 50% poor has improved for all then we can say that the Philippines is indeed an industrialized country.

[jrevalde]

bat ba newly industrialised country, manila lang naman ang industrialised eh, everywhere else hindi masyado

[Gr33nArch3r]

I actually agree. To be fair, I think our colonial mentality now is decreasing. A lot of pinoys/pinays actually prefer Philippine made products now. Dati, ni t-shirt wala kang mabibiling pinoy made or at least pinoy brand. Now, we have bench, F&H, Bayo etc. I do see and hope that Pinoy colonial mentality goes away as the younger generation (kids of the 70s, 80s, 90s) take over as captains of industry.

Originally Posted by 702flyguy

Its all of us to blame, "Colonial mentality" Foreign is always better, this is a wrong mentality. We should appreciate Filipino made products and manufacturers should improve there quality.

[jpdm]

Originally Posted by jrevalde

bat ba newly industrialised country, manila lang naman ang industrialised eh, everywhere else hindi masyado

There are alot of industrial areas in the country namely NCR, CALABARZON, Iligan-Philvidec area, Subic-Clark, Metro Cebu, Metro Davao, Iloilo I think...

[Gr33nArch3r]

Not really. Cebu, Davao, and most big cities in the Philippines are getting their share of industrialization. Even sleepy towns in the Calabarzon are alot different now than they used to be growing up as a kid. For better or worst.

Originally Posted by jrevalde

bat ba newly industrialised country, manila lang naman ang industrialised eh, everywhere else hindi masyado

[jpdm]

Most industrial factories in the Philippines are engage in assembly or into final production...

Most of them are import dependent...

almost no local content added..

plus, workers are poorly paid and less benefits....

No wonder,only the owners of factories earn...

backward and forward industries must be established...

inputs from the agricultural sector must be bought by the industrial sector...

this will unlock the potential of both sector...

local income will be distributed...

[Goku_25]

Oh Imperial Manila!

We should wait the SLEx rehab and expansion to be finished and to be extended to the southern tip of Luzon so the crucial parts of the southern Luzon may experience rapid urbanization and industrialization like Laguna in mid-70s was transformed from rural into industrialized area shortly after SLEx Alabang-Calamba stretch was constructed, but that pace of industrialization and urbanization should not replace the farmlands completely. Not to mention C-6 Expressway construction that may give Rizal province a boost. Also NLEx extension and NLEE (NELE) should be built in order to give development those crucial economic zones in the north.

Manila is too congested already, it should be decongested like Malaysia did decongest their main economic centers by building crucial infrastructures in their countryside such as expressways, airports, seaports, etc. That's why our government is trying to decongest the capital by improving existing infrastructures and to build new ones in order to give development in our countryside.

I think investors should stop investing in Metro Manila always and they should invest in designated parts of the countryside, like Metro Cebu, Subic, Clark, Metro Davao, Cagayan de Oro, Zamboanga, General Santos, Bacolod, Iloilo, Naga, Dingalan, Tarlac, Laoag, Tuguegarao, San Fernando, and the Bataan province.

Also, we should patronize our own products so that our country will truly rise as an industrialized country

[Askal82]

The key to industrialization are substantial investments in serious research and development projects. People keeps failing to realize that knowledge or even the creation of knowledge is the firm foundation of wealth creation. If you go back to the dawn of Industrialization in 18th century Europe and America all the way to Age of Information, the wealth of industrial nations comes from investments on accumulation of knowledge through invention and innovation that create new industries and opportunities.

[bartstrife99]

Originally Posted by Askal82

The key to industrialization are substantial investments in serious research and development projects. People keeps failing to realize that knowledge or even the creation of knowledge is the firm foundation of wealth creation. If you go back to the dawn of Industrialization in 18th century Europe and America all the way to Age of Information, the wealth of industrial nations comes from investments on accumulation of knowledge through invention and innovation that create new industries and opportunities.

I agree with these, proper innovation and direct invest to the people is also needed.

@jrevalde
Not only manila is highly industrial but also some part of the country what JPDM mention above is true!

[Lurker99]

I suppose one of the major factors to blame is the efficiency of elementary and secondary schools in inculcating among students the importance of nationalism and the benefits of pursuing education. Even if government officials are corrupt, the country would still have a high chance to progress if the population has the determination to let the country's economy to improve in a macro perspective.

Anyway, what else could we do? It would make a miracle if there would be a country in the world that is corruption-free. A study says that obliterating the entire human populace is the last resort to eradicate corruption 100%.

The Philippines is known around the world as an agricultural nation, though the current state is otherwise. I would truly agree with you that our agricultural sector is already crippled due to lack of government concentration, mishaps in budget, and the lack of support for our farmers. We should have already been the one of the largest rice producers and exporters in the world today but the past regimes' shift to industrialization tolled us to import what is perennial in us (e.g. rice, sugar).

Still we have hope.

We should not always rely on numbers such as to the industrialization and the rate of poverty in our country. What we should take in mind are ways on how to at least prevent or even alter the bad traits we have as a country ot only for our good rep but also for our betterment.

[swahi]

Originally Posted by jpdm

Most industrial factories in the Philippines are engage in assembly or into final production...

Most of them are import dependent...

almost no local content added..

plus, workers are poorly paid and less benefits....

No wonder,only the owners of factories earn...

backward and forward industries must be established...

inputs from the agricultural sector must be bought by the industrial sector...

this will unlock the potential of both sector...

local income will be distributed...

Having an industrialized economy means we have industries that are into honest to goodness manufacturing of goods, where added value means local inputs aside from Pinoy labor. Right now, a lot of our raw materials are still imported. If instead of being imported, these raw materials are made locally, it generates more employment. With more employment, means more available money by different people, thus, more money to spend. More money to spend, more goods sold.

For example, if an assembled product requires 10 pinoys to assemble, but the raw material is imported, then only 10 pinoys are given employment. Plus the employees of whoever is the importer, which may be 10 pinoys in that import/export company. But if that product, requiring 10 different kinds of raw material, whereby each raw material uses 10 pinoys, then we have 100 pinoys that have work.

Sure, the employers get rich in the process. Such is a fact of life. But in so doing, we develop the middle income and low income group, rather than being underemployed or worse, UNEMPLOYED.

Right now, the Philippines is mainly an importing country: Agriculture? Rice is imported. Electronics are either imported or are locally assembled using mostly imported parts. Our cars follow the same trend. We relied on clothes before, and now furniture. But furniture seems to be following the trend of our clothing sector. Our upstream industry couldn't take off, highlighted by that petrochemical scam whereby the investor decided to plunk his money and set up their facility elsewhere. After the T3 fiasco, foreign companies will think hard when approached by our government to redevelop our airports.
We offered tax credits under the BOI IPP program. What we got was a tax credit scam (though this was really more done by companies who saw loopholes in the system).

Our country has the capability to be industrialized. But our government just can't keep their klepto hands from the cookie jar. Therefore, it is safer to import rather than manufacture. Because if suddenly our fickle government changes its stance (again), a trader can easily pack up their operation with minimal losses, while a manufacturer can't, having spent capex on equipment already in place.

[barukdok]

Originally Posted by jrevalde

bat ba newly industrialised country, manila lang naman ang industrialised eh, everywhere else hindi masyado

wtf?!?

this is the funniest post ever

[mwg12a]

Originally Posted by jrevalde

bat ba newly industrialised country, manila lang naman ang industrialised eh, everywhere else hindi masyado

Cebu is already very industrialised. Baguio, Angeles City and Tarlac is the same way ,I think Davao and Bacolod is also following these pattern. Although I don't believe that the Philippines is already industrialized, the point that just because Manila is the most industrialized region in the Philippines means that it can't carry over to the whole country as being an "industrialised country"

[jpdm]

Originally Posted by Gr33nArch3r

I actually agree. To be fair, I think our colonial mentality now is decreasing. A lot of pinoys/pinays actually prefer Philippine made products now. Dati, ni t-shirt wala kang mabibiling pinoy made or at least pinoy brand. Now, we have bench, F&H, Bayo etc. I do see and hope that Pinoy colonial mentality goes away as the younger generation (kids of the 70s, 80s, 90s) take over as captains of industry.

This is what Ive been hoping for many many years now.

But you are right things are getting better. Filipino youths are slowly eliminating this paralyzing national illness.

Unless we take away this scourge called colonial mentality we can never graduate from being a poor country...

Most countries in Asia have realized how important loving one's country through economic nationalism...

But we are not...

Thats why our national capacity to develop economically almost grounded to the halt... We are moving slowly because every time a Philippine president comes up with a nationalistic policy of promoting Pinoy first...there is always vested interests that will destroy it....

Magsaysay's nationalistic inclination (killed by the CIA)Garcia's Filipino First (destroyed by Macapagal and the US. Macapagal started the decontrol and started the debt problem of the Philippines.), Marcos' 11 industrial project, Cory's nationalistic inclination....all destroyed...

Now, our industrial and agricultural sector is almost dead too. because of over-liberalization of the economy...with no protection from foreign (unfair) competition...

I will not anymore mention who started this globalization-privatization, deregulation and liberalization....

i like the first two, but I hate the last one....

[Deus Ex]

Originally Posted by swahi

Having an industrialized economy means we have industries that are into honest to goodness manufacturing of goods, where added value means local inputs aside from Pinoy labor. Right now, a lot of our raw materials are still imported. If instead of being imported, these raw materials are made locally, it generates more employment. With more employment, means more available money by different people, thus, more money to spend. More money to spend, more goods sold.

For example, if an assembled product requires 10 pinoys to assemble, but the raw material is imported, then only 10 pinoys are given employment. Plus the employees of whoever is the importer, which may be 10 pinoys in that import/export company. But if that product, requiring 10 different kinds of raw material, whereby each raw material uses 10 pinoys, then we have 100 pinoys that have work.

Sure, the employers get rich in the process. Such is a fact of life. But in so doing, we develop the middle income and low income group, rather than being underemployed or worse, UNEMPLOYED.

Right now, the Philippines is mainly an importing country: Agriculture? Rice is imported. Electronics are either imported or are locally assembled using mostly imported parts. Our cars follow the same trend. We relied on clothes before, and now furniture. But furniture seems to be following the trend of our clothing sector. Our upstream industry couldn't take off, highlighted by that petrochemical scam whereby the investor decided to plunk his money and set up their facility elsewhere. After the T3 fiasco, foreign companies will think hard when approached by our government to redevelop our airports.
We offered tax credits under the BOI IPP program. What we got was a tax credit scam (though this was really more done by companies who saw loopholes in the system).

Our country has the capability to be industrialized. But our government just can't keep their klepto hands from the cookie jar. Therefore, it is safer to import rather than manufacture. Because if suddenly our fickle government changes its stance (again), a trader can easily pack up their operation with minimal losses, while a manufacturer can't, having spent capex on equipment already in place.

This is very true!why? Even the green peas found in the Ding dong snack is from the USA It's insane!

[bartstrife99]

Foreign firms eye $ 500-M investments
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By EDU LOPEZ

At least 10 foreign garment manufacturers are planning to relocate their production out of China and invest $ 500 million in the Philippines.

Philexport garments sector trustee George Siy said: "Many of those who put up factories in China are beginning to move out due to its high labor cost. Export rebates were also abolished and they lack workers now. So we need to take advantage of this period to try to attract some of them to come here instead of our neighboring countries."

Although the Philippines has relatively high labor cost, Siy said that the workers’ proficiency in the English language is the country’s competitive advantage in attracting foreign investors.

He cited the need for the country to also implement policies meant to lure more manufacturers to set up their production facilities here and help the industry regains growth sales.

Siy said some of the incentives granted to companies that expired have to be renewed and that efforts must also be geared towards reducing electricity cost; improving infrastructure, logistics and processing of goods; and lowering traffic and other logistics costs.

He stressed the importance of negotiating trade benefits with other countries because although not all of them, most of the country’s competitors have been negotiating and some of them have already gotten some of those benefits. "We have to push through negotiations to get these trade agreements in place."

"Investments especially of these major regional players into the country are crucial for the garments industry to achieve growth despite the global economic slowdown."

"If they invest, definitely, there will be industry growth because major players bring clients with them. (Unlike) if you are a small player and you move to one country, you have to market again," said Siy. He indicated that industry players are already experiencing reduced sales volume as a result of the financial crisis in the United States.

"We expect that effects the global crisis would be felt probably in the next few months because the orders were already booked earlier. But there were some reductions in the orders. And in the next few months, it might show itself more."

The garments industry, along with the country’s largest export electronics, is targeted to post zero growth this year. But overall export sector is projected to grow in 2008 by three to five percent which already factored in the impact of the US crisis.