With Asia well poised for future economic success, the Philippines is slated to be one of the region’s growth leaders, as long as it continues to reduce corruption, invest public monies to build key infrastructure, and solve its electric generation and transmission issues.
This is according to "Competitiveness: Catching the Next Wave: The Philippines," a report released by Deloitte Touche Tohmatsu Limited (Deloitte Global).
Additionally, the report predicts that the key industries that will likely drive the Philippines growth over the next 20 years include manufacturing, business process outsourcing (BPO), construction, transportation and logistics, and information and communications.
"The strong growth in global manufacturing to 2033 will drive world growth, and this presents the Philippines with great potential to integrate into the global supply chain of high-value manufacturing,” said Gary Coleman, Managing Director, Global Clients and Industries, Deloitte Global.
“If the government makes smart investments in infrastructure—including roads and harbors— that would help to boost the construction and transportation sectors and lead to higher productivity growth in the coming years as well."
While the report notes that the BPO industry will be a source of employment for new graduates it cautions that to achieve long-term growth, the Philippines must reduce unemployment and the government must implement policies to improve the business climate. It also urges the government to reduce bribery and corruption through reform measures that include the procurement process, civil servant training and wages, and instituting reporting and enforcement mechanisms.
To help boost manufacturing initiatives, the government should introduce a number of special industrial zones that benefit from a combination of supportive government policies. The Philippines should also begin to specialize in higher-value manufacturing.