The number of workers in the manufacturing sector is targeted to triple to 10 million by 2030 as industries make a big push for industrialization, according to Roberto Batungbacal, vice president of the American Chamber of Commerce of the Philippines (Amcham).

The  Joint Foreign Chambers (JFC)  yesterday released the new version of its Manufacturing Policy Note which lays down the goal of creating a globally competitive manufacturing sector that would contribute 30 percent of the Philippines’ total value added and 15 percent of total employment

Batungbacal said the Philippines is leading the growth in Asia, expanding exponentially from 4 percent per annum in the past decade to 7 percent last year.

Manufacturing currently employs 3 million people.

While agriculture remains the highest employer, Batungbacal said the value this contributes is much lower compared to that of manufacturing.

“We want to shift those jobs (from agriculture) to manufacturing through industrialization. We want to create more value not just from raw materials but also in labor, “ Batungbacal said.

But the policy note said the manufacturing sector continues to be challenged by issues which need to be addressed.

The JFC identified seven  issues that cut across the sub-sectors of manufacturing: infrastructure (power and ports), labor cost, bureaucracy in regulatory process, taxes, broken linkages in the supply chain, non-inclusion in the Trans Pacific Partnership (TPP) and micro, small and medium enterprises concerns.

“The manufacturing sector is seen as a key economic driver that could accelerate economic growth and contribute in achieving inclusive growth,” the JFC said.

The group recommended the following: address high cost of power through tax credits and discounts; prioritize infrastructure critical to industry growth; support labor-intensive companies through wage subsidies or waiver of minimum wages; streamline regulatory processes; support MSME development by providing access to technologies and facilities; conclude the  European Union-Philippines free trade agreement and join the TPP; establish more economic zones; keep incentives; tap industry experts; reduce taxes and; increase total employment in manufacturing.

The policy note recommendations can also contribute to the 10-Point socioeconomic agenda of the current administration to address the constraints of Philippines manufacturing such as the comprehensive tax reform; efforts to ease the process of doing business; the development of regional industries and the reduction of bottlenecks in public-private partnership.

“Despite, the issues and challenges, the current Philippine economic environment favors the resurgence of the manufacturing sector in the Philippines such as high GDP growth rate, skilled Filipino workforce, effective and competitive high-skilled production, stronger domestic demand, and the country’s competitiveness continues to improve, among others,” the JFC said.