According to Dr. Yuwa Hedrick-Wong, global economic advisor for MasterCard Worldwide, the Philippines must restructure its manufacturing industry and take advantage of an expected relocation of Chinese manufacturing jobs to other Asian countries in the next decade.
Dr. Hedrick-Wong made his astute observations during his recent presentation titled “The Global Economy and Forging Philippines’ Economic Future” at the MasterCard Economic Forum. He added that the Philippines is in a “strong position” to capture the Chinese manufacturing jobs since Chinese wages are not getting cheaper and its labor force is dwindling.
According to the visiting economic guru, if the Philippines can convince even at least 1% of Chinese manufacturers to relocate to the Philippines, four million new jobs could be created in the Philippine manufacturing sector. This, in fact, would surpass even what the country currently has. “The strategic window of opportunity is open and there is no time to lose,” advised Dr. Hedrick-Wong.
Moreover, Dr. Hedrick-Wong stressed the need for the Philippines to close the convergence gap by expanding manufacturing employment.
To achieve this, Dr. Hedrick-Wong proposes a two-pronged strategy: increase investment to GDP ratio and increase the efficiency of investment. As of 2011, the country’s investment to GDP ratio is estimated at 21.4%, as compared to the other Asian Tigers’ average of 33% during their take-off years.
He likewise dispelled the benefits of demographic dividends saying that until the population is educated, demographic dividends will remain a burden. Instead, the Philippines should focus on education, health, and infrastructure to help transform these demographic dividends.
He cites the case of Switzerland which has invested heavily in services to its people, thereby enabling its citizens to enjoy a high per capita income and making the Swiss among the happiest and contented people in the world.
Dr. Hedrick-Wong also stressed that the Philippines only needs to iron out a few bottlenecks to attain economic progress. He strongly believes that the Philippines is in fact better primed to forge ahead compared to other Asian emerging countries like Bangladesh, Cambodia and in particular, Vietnam. Outlining all the labor advantages that the Philippines enjoys over its ASEAN partner Dr Hedrick-Wong quipped that “Vietnam does not hold a candle to the Philippines.”
Dr. Hedrick-Wong also made the point that Filipinos should not just be too reliant on government for change – something that Malacanang would go along for sure!
“The private sector should think more creatively in finding ways around loopholes,” added Dr. Hedrick-Wong.
rjottings@yahoo.com
No comments:
Post a Comment