The Philippine manufacturing sector has recorded decreases in both volume and value in November 2019, its 12th month in a row of decline, according to the Philippine Statistics Authority (PSA).
Based on the preliminary result of PSA’s Monthly Integrated Survey of Selected Industries, the Volume of Production Index (VoPI) fell 6.1% in November 2019 from the 1.9% growth in the same month last year.
The Value of Production Index (VaPI) likewise dropped, contracting 5.8% from the 2.3% increase in November 2018.
The decline in VoPI was mainly influenced by the decreases in the indices of eight major industry groups including furniture and fixtures (-41.2%), basic metals (-29.5%), miscellaneous manufactures (-22.1%), petroleum products (-21.8%), transport equipment (-16.7%) and electrical machinery (-13.0%).
VaPI’s decline, meanwhile, was due to the two-digit decreases in five of the nine major industry groups, namely, basic metals (-36.2%), petroleum products (-25.6%), miscellaneous manufactures (-20.7%), transport equipment (-20.6%) and electrical machinery (-16.6%).
The National Economic and Development Authority earlier said the extension in the validity of the 2019 national budget and the timely passage of the 2020 General Appropriations Act (GAA) are needed to sustain the implementation of construction-related activities and help drive growth in the manufacturing sector.
President Rodrigo Duterte on January 6 finally signed the 2020 GAA amounting to P4.1 trillion.
Accelerating the implementation of the infrastructure development programs and continued investment in human capital development are also critical to achieving the national government’s targeted disbursement.
Fast-tracking the passage of the Corporate Income Tax and Incentives Rationalization Act and the proposed amendments to the Foreign Investments Act, Public Service Act, and Retail Trade Act is also highly needed to help eliminate policy uncertainties and enable investment and business expansions in the country.
