Government incentives for research and development are vital if we are to encourage local companies to improve product quality, innovation, and efficiency to enable them to compete with international companies. This can include tax breaks, access to funding, and streamlined regulations. Collaboration with research institutions and universities to develop new technologies and products should be encouraged.
Tesda, the government agency tasked to manage and supervise technical education and skills development in the country, needs to zero in on training programs and education to develop a skilled workforce that can handle the demands of modern manufacturing.
To graduate from being mere lip-service, support for small and medium-sized manufacturers should be made real to help them grow and compete in the global market, implement policies such as import tariffs and quotas to protect local manufacturers from foreign competition and promote local production.
We have to help and encourage manufacturers to export their products to international markets by providing support with market research, trade agreements, and export financing, not to mention the promotion of a culture of innovation and entrepreneurship in the manufacturing industry to drive growth and competitiveness.
The development of industry clusters should very well be observed where manufacturers within the same sector can collaborate, share resources, and benefit from economies of scale.
Encourage manufacturers to adopt digital technologies such as automation and artificial intelligence to improve efficiency, productivity, and competitiveness.
With the lack of capital, we have to attract foreign investors to the manufacturing sector by offering incentives, a skilled workforce, and a favorable business environment under a comprehensive industrial policy that outlines the government's vision, strategies, and actions to promote the growth and competitiveness of the manufacturing industry.
Local manufacturers should not look elsewhere, instead should source raw materials and components locally to support local suppliers and reduce dependence on imports, while directing manufacturers to move up the value chain by focusing on producing higher value-added products and services, which can lead to increased competitiveness and profitability.
Of course, with a robust manufacturing sector, the government should invest in branding, marketing, and promotion efforts to raise awareness of Philippine-made products, enhance their image, and increase their marketability both domestically and internationally.
(Edwin M. Cordevilla is a multi-awarded writer, poet and author of several books. He is a former undersecretary of the Presidential Communications Office. You may send your comments at edcordevilla@gmail.com.)
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