Manila: Structural drivers of the domestic economy remain strong, making manufacturing players still optimistic amidst economic challenges, an industry official said. In a statement Tuesday, Elizabeth Lee, Federation of Philippine Industries (FPI) chairperson, cited the jump in domestic inflation rate last April to 7.2 percent, from the month-ago's 4.1 percent, along with the contraction in the S and P Global Philippines Manufacturing Purchasing Managers' Index (PMI) last April to 48.3 level as an additional challenge to the current situation.
According to Philippines News Agency, Lee highlighted that manufacturers are facing rising fuel and raw material costs, while also contending with lower domestic demand. She emphasized that as long as external conflicts and supply disruptions persist, the operating environment becomes more difficult for economies like the Philippines, which largely act as price-takers in global markets.
Despite these challenges, Lee pointed out reasons for cautious optimism, noting that the Philippines benefits from a large domestic consumer market, a young workforce, ongoing infrastructure upgrades, and a fundamentally resilient manufacturing base. She suggested that an increased manufacturing share in GDP would enhance the economy's resilience in the future.
Lee also mentioned that periods of disruption create opportunities for firms to improve efficiency, localize supply chains, accelerate automation, and strengthen competitiveness. Companies that adapt early can emerge stronger when conditions normalize.
She acknowledged that businesses are striving to adjust and address these challenges by changing planning cycles, adopting more agile operating strategies, and reassessing capital expenditures, among other measures. However, she cautioned that micro, small, and medium enterprises (MSMEs) are particularly vulnerable, as they have less capacity to absorb sustained cost increases.
Concluding her statement, Lee called for urgency and partnership among government, labor, and industry to stabilize prices, preserve jobs, sustain investments, and restore manufacturing momentum. She stressed that competitiveness cannot be taken for granted and must be protected through decisive action to withstand future shocks.
