DTI: Share of pub­lic con­struc­tion fast catch­ing up with pri­vate sec­tor

Manila Bulletin - - Business News - By BERNIE CAHILES-MAGK­I­LAT

Pub­lic con­struc­tion is quickly catch­ing up with the pri­vate sec­tor in the over­all do­mes­tic in­dus­try as gov­ern­ment’s huge in­fra­struc­ture pro­gram starts kick­ing in.

Ac­cord­ing to Trade and In­dus­try Sec­re­tary Ra­mon M. Lopez, pub­lic con­struc­tion has in­creased its share to over­all con­struc­tion ac­tiv­ity in the coun­try to 32 per­cent in the first half of 2018 from only 26 per­cent in same first half in 2017.

In 2017, pri­vate con­struc­tion ac­counted for the bulk at 74 per­cent share.

“The Philip­pines’ ro­bust eco­nomic growth is fu­eled by the strong per­for­mance of the con­struc­tion in­dus­try,” cited Lopez in a speech at the 3rd Philip­pine Con­struc­tion In­dus­try Con­gress.

GDP growth stood at 6.3 per­cent yearon-year (yoy) in the first se­mes­ter of 2018. Among the three ma­jor eco­nomic sec­tors, In­dus­try recorded the fastest growth at 7 per­cent. Among the four sub-sec­tors of In­dus­try, Con­struc­tion posted the high­est growth rate at 11.5 per­cent, more than dou­bled its 2017 growth of 5.3 per­cent.

Con­struc­tion out­put has ac­counted for nearly 6 per­cent of GDP on av­er­age over the 2010-2017 pe­riod. In the first se­mes­ter of 2018, its share to GDP has climbed to 6.5 per­cent com­ing from 6.2 per­cent in 2017.

The con­struc­tion in­dus­try sub­stan­tially con­trib­uted 32.8 per­cent to over­all cap­i­tal in­vest­ments in the coun­try dur­ing the first se­mes­ter of 2018.

In­crease in con­struc­tion in­vest­ment is due to high con­sumer con­fi­dence, mod­est in­fla­tion and in­ter­est rates, and im­prov­ing la­bor mar­ket con­di­tions.

The con­struc­tion in­dus­try is in the lime­light fol­low­ing the gov­ern­ment’s ag­gres­sive com­mit­ment to ap­prove and im­ple­ment more big-ticket in­fra­struc­ture projects.

“The “Build, Build, Build” pro­gram will al­low our bud­get for in­fra­struc­ture to grow to 5 to 7 per­cent of the GDP over the medium- to long-term,” said Lopez.

Dur­ing this “Golden Age of In­fra­struc­ture,” the Duterte ad­min­is­tra­tion has iden­ti­fied 75 flag­ship in­fra­struc­ture projects to be con­structed or im­ple­mented in the medium term.

Looez said the “BBB” will also help fa­cil­i­tate greater trade and in­vest­ment. On one hand, it will open ac­cess to new mar­kets. On the other, it will min­i­mize trade and lo­gis­tics costs. Th­ese, in turn, will sup­port over­all ef­forts to gen­er­ate de­cent em­ploy­ment and job op­por­tu­ni­ties for Filipinos.

Lopez noted that the Con­struc­tion In­dus­try Au­thor­ity of the Philip­pines (CIAP) has part­nered with the De­vel­op­ment Bank of the Philip­pines to pro­vide train­ing and fi­nan­cial as­sis­tance to con­trac­tors.

The con­struc­tion sec­tor has helped ad­dressed job em­ploy­ment op­por­tu­ni­ties brought about by the boom­ing of the con­struc­tion in­dus­try.

The share of the con­struc­tion in­dus­try to to­tal em­ploy­ment of the coun­try is 9.3 per­cent in the first se­mes­ter of 2018. It con­tin­ues to pro­vide job op­por­tu­ni­ties, em­ploy­ing a to­tal of 3.826 mil­lion work­ers, up by 13.2 per­cent from the same pe­riod in 2017.

The Na­tional Eco­nomic and De­vel­op­ment Au­thor­ity (NEDA) ex­pects around 820,000 jobs to be gen­er­ated with a num­ber of in­fra­struc­ture projects break­ing ground for the year 2018. More jobs are ex­pected to be gen­er­ated in the con­struc­tion sec­tor un­der the Duterte ad­min­is­tra­tion's in­fra­struc­ture pro­gram, and Filipinos will be high on the pri­or­ity list of em­ploy­ment op­por­tu­ni­ties.

To ad­dress the skills mis­match and the deficit in trained man­power, CIAP is do­ing all-out im­ple­men­ta­tion of ac­tiv­i­ties to ca­pac­i­tate our hu­man re­sources in the con­struc­tion in­dus­try.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.