Several measures of competitiveness reveal fundamental weaknesses in major development aspects compared to the rest of the world. Compared with its neighbours, the country’s economic performance in terms of investments, exports and competitiveness is unsatisfactory and need to be reversed. The Philippine economy over the past years has been characterized by a reduced share of manufacturing sector in the country’s gross domestic product (GDP) and declining gross domestic investment rate.
Enabling the industry and services sectors to contribute significantly to economic growth and employment requires addressing a number of constraints to their development. Strategies shall therefore be pursued to help raise the competitiveness of industries by improving the business environment; raising productivity and efficiency and inculcating quality consciousness among manufacturers and producers to offer quality goods and services comparable with global brands.
Business competitiveness will be enhanced by improving governance, strengthening economic zones, and strengthening national brand identity/awareness. To increase productivity and efficiency, government shall focus interventions on key priority areas, provide firm level support to MSMEs, increase market access, expand industry cluster development and intensify the culture of competitiveness. Proactive measures to empower consumers, promote competition and enforce trade regulations shall also be pursued.