Programs against climate change needed by agri – DOF

The government should strengthen its climate change initiatives to protect its local agriculture sector against severe affects, the Department of Finance (DOF) said.

In his latest economic bulletin, Finance Undersecretary Gil S. Beltran, said the government should prioritize the agriculture sector in its programs against climate change as the industry employs some 30 percent of the country’s workforce.

“The government should intensify its programs to strengthen the resiliency of the country against climate change as this severely affects the agriculture sector,” Beltran said.

In particular, Beltran emphasized the need for the continuation of publicprivate partnerships (PPPs) for the development of infrastructure and roads vital for the growth of agriculture.

PPP is also needed to boost the domestic economy, the finance official and DOF’s chief economist said.

Aside from private sector participation, Beltran also highlighted the need for more government programs aimed at enticing foreign and domestic investors to invest in the country.

“With the continued slump on global economy and decline in the export industry, the government should continue encouraging foreign and local investors to set-up businesses in the country,” Beltran said.

“Promoting innovation among local manufacturers may also improve the production of goods,” he added.

Meanwhile, Beltran urged local manufacturing companies to increase their production amid cheaper oil prices.

“The continued decline in oil prices allows local firms to produce more goods at lower cost of production. This will compensate for losses in export sector,” Beltran said.

He also pointed that the manufacturing sector, particularly food processors, may not need to wait for the agricultural sector to provide the needed inputs, adding the government may assist in providing alternative sources.

“The Department of Trade and Industry may need to assist the sector to look for alternative sources of inputs to reduce factory downtime and avoid food price increases,” Betran said.

In November last year, the Volume of Production Index (VoPI) of the manufacturing sector posted a positive growth of 7.5 percent, significantly higher than 1.7 percent in the previous month but lower than 9.1 percent in the previous year.

Seven major sectors which contributed to the growth were tobacco products (52.7 percent), machinery except electrical (29.6 percent), basic metals (25.1 percent), and leather products (23.7 percent).

Likewise, electrical machinery (20.1 percent), petroleum products (12.5 percent) and footwear and wearing apparel (12 percent) contributed to the hefty growth.