Former National Economic and Development Authority (NEDA) Sec. Ernesto Pernia said that the country needs to beef up their manufacturing sector for the economy to grow significantly.

Economists at the Philippine Economic Society and Stratbase ADR Institute said that the country still is a work in progress as far as the economy is concerned.

Pernia underscored that the manufacturing industry is in need of help from the government as it is lagging behind many regional peers. 

Among the key factors identified include low foreign direct investments or FDI to the country, which would have created more manufacturing plants and generated more jobs.

They said that based on the data from the Bangko Sentral ng Pilipinas, the country’s FDI in 2022 was only around $9.4 billion, lower than Thailand’s $10.2 billion, Malaysia’s $15 billion, Vietnam’s $17.9 billion, and Indonesia’s $21.4 billion. 

"The current status quo makes it quite challenging for the Philippines being the laggard in advancing its manufacturing sector. Enhancing the manufacturing sector, as our ASEAN peers have, requires ample foreign direct investments, domestic investments and the capacity to export, which is facilitated by FDIs themselves," Pernia said. 

Pernia also said that the Philippines' exports-to-GDP ratio is at 13.8 percent, which is lower when compared to neighbors Indonesia's 19.6 percent, Thailand's 53.5 percent, Malaysia's 63.3 percent, and Vietnam's 104.2 percent.

"We are not attracting not enough FDI because we are seen as having too many complex regulations, which actually tends to be an avenue for corruption also," he said.