The Philippine manufacturing sector recorded double-digit decreases in both volume and value in April 2019, its fifth month in a row of decline, according to the Philippine Statistics Authority (PSA).
In its latest Monthly Integrated Survey of Selected Industries (MISSI), PSA reported that the Volume of Production Index (VoPI) and Value of Production Index (VaPI) in April 2019 dropped 14% and 10.8%, respectively. This is in contrast to the 21% growth in VoPI and 21.8% increase in VaPI in April 2018.
The decrease in VoPI in April 2019 was influenced by the downward movements noted in 11 major industry groups. Of these, seven industry groups registered two-digit year-on-year declines, namely, tobacco products (-29.2%), leather products (-25.5%), petroleum products (-24.3%), food manufacturing (-20.6%), furniture and fixtures (-19.6%), basic metals (-16.2%), and transport equipment (-11.8%).
For VaPI, the downtrend was mainly due to the two-digit year-over-year drop in six major industry groups: tobacco products (-25.4%), petroleum products (-25.1%), leather products (-24.0%), food manufacturing (-23.9%), and basic metals (-23.0%).
The National Economic and Development Authority (NEDA) earlier encouraged exporters to continue to diversify their products to expand their markets.
“To match this effort, the government continues to explore non-traditional markets such as Eastern European countries and is seeking to strengthen ties with traditional trading partners,” Socioeconomic Planning Secretary Ernesto M. Pernia had said.
He noted that to this end, the Export Marketing Bureau of the Department of Trade and Industry is looking at non-electronic products such as cars, desiccated coconut, coconut oil, and footwear and wearables as new export growth drivers.
“Recently, the Philippines has also secured a commitment from the UK on continuing the same level of market access to UK post-Brexit, similar to the EU’s Generalized Scheme of Preferences,” the Cabinet official said.
In addition, the Philippines and the Republic of Korea have arrived at a common understanding to pursue a bilateral free trade agreement, and could possibly conclude the negotiations in time for the Republic of Korea-ASEAN Commemorative Summit in November 2019.
