MANILA — A government stimulus package for the automotive manufacturing sector could generate additional P41 billion in new investments and create 70,000 jobs, a study conducted by the University of Asia and the Pacific (UA&P) stated.
The Board of Investments (BOI) has quoted the UA&P study in a statement released in time for the presentation of the Automotive Industry Cluster Roadmap as part of its Trade and Industry Update (TID Updates).
The UA&P study projects that 170,000 additional direct employment would be generated for every P100 billion in investments. In addition, if the government stimulus package is okayed, the industry would be able to draw additional P41 billion in investments that would generate 70,000 jobs.
Earlier, Cabinet Secretary Rene Almendras reported that Malacañang is studying a $600-million automotive industry support fund as part of the fiscal incentive package the government will grant to automotive investors under the CARS Program.
Trade and Industry Undersecretary Adrian S. Cristobal Jr., who is also BOI managing head, said the automotive manufacturing industry is one of the major drivers of the country’s industry sector, generating about a quarter of one trillion pesos in sales last year.
In the roadmap, the industry is expected to generate 300,000 ty jobs by 2022.
The Philippine Automotive Manufacturing Industry (PAMI), a group of automotive industry players, is one of the major drivers of Philippine industry. The industry has generated some P248.5 billion sales in 2013.
The industry is comprised of two core sectors, the Manufacture of Parts and Accessories for Motor Vehicles and the Manufacture of Motor Vehicles, while allied industries include the Manufacture of Bodies, Wholesale and Retail Trade, Maintenance and Repair of Motor Vehicles, and Wholesale and Retail Trade of Parts and Accessories of Motor Vehicles.
In 2013, it was estimated that the industry generated direct employment for 8,000 workers in auto-manufacturing.
Meanwhile, the auto parts sector, with 256 companies mainly located in Manila, Laguna, and Cavite, generated approximately 68,000 jobs. In addition, 340,000 Filipinos are employed in auto-supporting industries. Despite high-skill requirements, PAMI has been employing high school and vocational school graduates.
“The comprehensive operation of the automotive industry extends to other complementary sectors, i.e. textiles, glass, plastics, electronics, rubber and iron and steel. Hence, increasing PAMI’s productivity would likewise increase the economic activity of supporting industries, and the Philippine economy as a whole,” Cristobal said. (Manila Bulletin)