Semiconductor investment to spark Philippine jobs

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Philippines-assemblyThe most glaring chink in the Philippines’ economic armour, high unemployment is now being more concertedly addressed with the funneling of investment into the country’s  “missing leg” – its manufacturing sector.

The Philippines’ fresh investment credit upgrades and President Aquino’s opening of a new semiconductor testing facility – which will dramatically cut costs for the industry – have preceded a wave of investment into the high-potential job creator.

“The semiconductor industry recently received six new investments and there are another nine coming in,” Secretary-General Crisanto Frianeza at the Philippine Chamber of Commerce and Industry (PCCI) recently told Inside Investor, quoting the Philippine Electronics and Semiconductor Suppliers’ Association.

Frianeza also hinted that the new investments could be coming from Japan, currently the largest investor in the Philippines’ semiconductor industry, as well as other electronic components and adhesives.

As colourfully explained by the Asian Development Bank, if the Philippine boom is to be sustainable, the country’s rapidly growing business services sector, the “other leg,” must walk together with the manufacturing sector, led by the semiconductor industry, the largest supplier of manufacturing jobs.

The semiconductor industry produces the most jobs at about 10 per cent of the total manufacturing sector, or 117,346 out of the total 968,671 jobs, based on 2010 data, Frianeza added.

However, these jobs hardly make up for the widening gap of those out of work, with unemployment rising to 7.5 per cent from 7.1 per cent in June, causing stocks to plummet.

To get the manufacturing sector really walking, the Philippines will have to battle a number of growth barriers, including high-electricity costs, poor infrastructure and unfavourable business policies.

“The PCCI is working closely with the government to address these constraints.  The chamber is also working closely with government and other concerned stakeholders to craft a manufacturing roadmap, which will focus on sectors that will generate employment,” Frianeza revealed.

A government-initiated roadmap would complement that already drawn up for the business services sector, the source of the largest private employment in the country.

The roadmap would likely include an outline to boost jobs in electronics, garments, and machinery and transport equipment, the key manufacturing exports for the Philippines.

 

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Reading Time: 2 minutes

The most glaring chink in the Philippines’ economic armour, high unemployment is now being more concertedly addressed with the funneling of investment into the country’s  “missing leg” – its manufacturing sector.

Reading Time: 2 minutes

Philippines-assemblyThe most glaring chink in the Philippines’ economic armour, high unemployment is now being more concertedly addressed with the funneling of investment into the country’s  “missing leg” – its manufacturing sector.

The Philippines’ fresh investment credit upgrades and President Aquino’s opening of a new semiconductor testing facility – which will dramatically cut costs for the industry – have preceded a wave of investment into the high-potential job creator.

“The semiconductor industry recently received six new investments and there are another nine coming in,” Secretary-General Crisanto Frianeza at the Philippine Chamber of Commerce and Industry (PCCI) recently told Inside Investor, quoting the Philippine Electronics and Semiconductor Suppliers’ Association.

Frianeza also hinted that the new investments could be coming from Japan, currently the largest investor in the Philippines’ semiconductor industry, as well as other electronic components and adhesives.

As colourfully explained by the Asian Development Bank, if the Philippine boom is to be sustainable, the country’s rapidly growing business services sector, the “other leg,” must walk together with the manufacturing sector, led by the semiconductor industry, the largest supplier of manufacturing jobs.

The semiconductor industry produces the most jobs at about 10 per cent of the total manufacturing sector, or 117,346 out of the total 968,671 jobs, based on 2010 data, Frianeza added.

However, these jobs hardly make up for the widening gap of those out of work, with unemployment rising to 7.5 per cent from 7.1 per cent in June, causing stocks to plummet.

To get the manufacturing sector really walking, the Philippines will have to battle a number of growth barriers, including high-electricity costs, poor infrastructure and unfavourable business policies.

“The PCCI is working closely with the government to address these constraints.  The chamber is also working closely with government and other concerned stakeholders to craft a manufacturing roadmap, which will focus on sectors that will generate employment,” Frianeza revealed.

A government-initiated roadmap would complement that already drawn up for the business services sector, the source of the largest private employment in the country.

The roadmap would likely include an outline to boost jobs in electronics, garments, and machinery and transport equipment, the key manufacturing exports for the Philippines.

 

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