PH fastest growing manufacturing country in Asia – CBRE

The Philippines emerged as the fastest growing manufacturing country in Asia because of its lower input costs and cheap labor, a study released by global real estate services firm CBRE Asia Pacific showed.

“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,” said CBRE chairman and chief executive officer Rick Santos.

“Close coordination between the private and public sectors are positively seen by investors who wish for a more efficient and convenient place of operations,” he added.

Because of this, industrial production is expected to increase by 10.8 percent year-on-year this 2015.

Due to rising income levels, an uptick of 6 percent in private consumption pattern is also expected to contribute to the growing manufacturing industry.

“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.

The study further showed that across the Asia Pacific region, the Philippines offers attractive tax and other investment incentives, affordable and talented labor pool, and cheap rental rates.

As of now, there are 316 economic zones nationwide which house some of the top manufacturing and industrial names across the globe such as Brother Industries and EPSON, while automotive and electronic vehicle (EV) companies from Japan and Germany are continuously expanding in the country.

Other than the entry of multinational companies into the Philippines, the country is also gaining ground as a top exporter in the region.

According to the Asia Pacific market view, 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).

The country is also seen to attract electronics and textile production companies to relocate from their traditional base in China.

The Philippine government’s efforts in improving the infrastructure of the country are aimed to boost more foreign direct investments (FDI) and sustain the growth of the industry in the coming years. (MBM)