South Korea keen on investing in Luzon Economic Corridor

Philippines, South Korea scaling up economic cooperation

Aubrey Rose Inosante

Philstar Global

10 July 2026

MANILA, Philippines — The Philippines and South Korea are scaling up economic cooperation through strategic investments under the Luzon Economic Corridor (LEC) and potential collaboration on nuclear energy, the Department of Finance (DOF) said.

Finance Secretary Frederick Go and Korean Ambassador Lee Sang-Hwa reaffirmed their commitment to expanding economic cooperation, including opportunities under the LEC.

The two countries are strengthening their economic partnership through strategic investments in high-value manufacturing, semiconductors, shipbuilding and infrastructure.

The partnership leveraged Korea’s technical expertise and the Philippines’ young workforce, the DOF said.

“These investments represent opportunities for Filipinos through better jobs, improved connectivity and more reliable services. We look forward to working closely with Korea to deliver projects that are truly responsive to the needs of the people,” Go said.

Among the investments mentioned was the expansion of the multilayer ceramic capacitor (MLCC) manufacturing facility of Samsung Electro-Mechanics Philippines in Laguna.

MLCCs are vital components of automobiles, smartphones and other electronic devices.

Go and the Korean envoy also noted SFA Semicon’s proposed expansion investment, HD Hyundai Heavy Industries’ shipbuilding operations in Subic and the construction of two major railway projects that will enhance connectivity across Luzon.

The Philippines and Korea are likewise deepening maritime cooperation through HD Hyundai Heavy Industries Philippines, which is set to launch its first locally built vessel at its Subic shipyard this year.

Korea is also a key partner in the construction of the North-South Commuter Railway and the Subic-Clark-Manila-Batangas Railway, which are touted to slash travel time and cost.

Potential cooperation on nuclear energy to diversify the country’s energy mix and support long-term economic growth was also explored.

“As a trusted and enduring partner, the Republic of Korea remains committed to deepening substantive cooperation with its strategic partner, the Philippines, to build a shared future marked by mutual prosperity, resilience and sustainable growth,” Lee said.

Nine Young Filipinos makes it on Forbes' Asia List 2026

Nine PH entries land on Forbes' 30 Under 30 Asia list 2026

Jon Viktor D. Cabuenas
GMA News
29 May 2026

Nine entries from the Philippines were included in this year’s Forbes “30 Under 30 Asia” list, which recognizes entrepreneurs, leaders, and innovators across the Asia-Pacific region “pushing the boundaries” in their respective fields.

The listees were chosen from close to 4,000 candidates who were evaluated by the Forbes Asia team and a panel of judges based on factors such as funding and revenue, social and industry impact, product-market fit, inventiveness, and potential.

Below are the listees from the Philippines, with cofounders of the same company listed together as one entry:

BayaniChain Tech cofounders Raphael Sevilla and Brandon Angelo Wong

Photo: Forbes| People Asia

Tennis player Alexandra Eala

Photo: Alex Eala Official | Screencap

Singer-songwriter Zack Tabudlo

Photo: Zach Tabudlo Official | Screencap

Amico Innovations cofounder Kharl Christian Yeung

Photo: Forbes | People Asia

Fan connection SEA cofounders Pauline Dizon and Adrian Jumangit

Photo: Forbes | People Asia

GoRocky cofounders Kiyanusch Braun and Martin Joaquin Palaña

Photo: Instagram | People Asia

ASEAN Youth Advocates Network founder Emmanuel Mirus Ponon

Photo: Facebook Profile | People Asia

Empath founder Steph Naval

Photo: Instagram | People Asia

Siklab founder Saje Miguel Molato

Photo: Siklab Pilipinas | Screencap

“The 11th edition of the Forbes 30 Under 30 Asia list spotlights a fresh wave of young minds from across Asia Pacific, who continue to innovate and disrupt their industries at a time when artificial intelligence is reshaping our daily lives,” Forbes Asia editorial director Rana Wehbe Watson said in an emailed statement.

“From entrepreneurs building companion robots and AI tools to up-and-coming stars stepping into the global spotlight, this year’s listees illustrate Gen-Z’s influence across business and culture in the region,” she added.

The list covers 10 categories: AI; Consumer & Enterprise Technology; Entertainment & Sports; Finance & Venture Capital; Healthcare & Science; Industry, Manufacturing & Energy; Retail & Ecommerce; Social Impact; Social Media, Marketing & Advertising; and The Arts.

India had the most entries for the year with 78, followed by China with 46, Australia with 38, and Japan with 32. Indonesia, Singapore, and South Korea all had 18. —VAL, GMA News

More Philippine companies landed on TIME’s list of the best companies in Asia-Pacific 2025

36 Philippines firms in TIME Asia-Pacific’s best list; BPI cracks top 10

Richmond Mercurio
Philstar Global
13 February 2026

MANILA, Philippines —  More Philippine companies landed on TIME’s list of the best companies in Asia-Pacific this year, led by Ayala-controlled Bank of the Philippine Islands (BPI), which broke into the top 10.

A total of 36 Philippine companies made TIME and Statista’s Asia-Pacific’s Best Companies of 2026 list, up from 29 firms a year earlier.

In ranking the region’s best companies, three key metrics were used to assess firms: employee satisfaction, revenue growth and environmental, social and governance or ESG evaluations.

BPI was the highest-ranked Philippine firm on the list, placing 10th among 500 companies with an overall score of 93.83.

Coming in at second place was Ayala Corp., the country’s oldest conglomerate, at No. 35, followed by the SM Group’s banking arm, BDO Unibank, at No. 47.

Two other Filipino companies made the top 100 – Ayala’s real estate arm, Ayala Land, at 73rd and Frederick Dy-chaired Security Bank at 88th.

SM Investments, the Sy family’s investment holding firm, landed at 101st, followed by broadband services provider Converge ICT Solutions  at 115th.

Yuchengco-led RCBC and Aboitiz-led UnionBank came in at No. 137 and No. 140, respectively.

Rounding up the top 200 were beverage firm Ginebra San Miguel at the 150th spot, Asian food conglomerate Jollibee Foods at 152nd place and Lucio Tan-owned Philippine National Bank at 185th.

Also making the list were Alliance Global Group (227th), SM Prime Holdings (229th), Universal Robina Corp. (246th), Meralco (250th), Manila Water (264th),  Chinabank (273rd), JG Summit Holdings (302nd), Filinvest Development Corp. (306th), Megaworld (309th), Bloomberry Resorts (320th), ICTSI (340th), Robinsons Retail Holdings (341st) and Cebu Pacific Air (350th).

Other Philippines companies included were PLDT (371st), Land Bank of the Philippines (375th), Concepcion Industrial (404th), Vista Land (408th), ACEN (410th), Globe Telecom (448th), Puregold Price Club (452nd), San Miguel (476th), Apex Mining (479th), Max’s Group (494th) and Wilson Depot (499th).

TIME said that banking and financial services once again dominated this year’s ranking of the region’s best companies.

Indian firms made up the lion’s share, taking up 179 spots in the list.

Overall, Singapore’s DBS Bank claimed the top spot, followed by the Commonwealth Bank of Australia, Toyota and Sumitomo Mitsui Financial Group of Japan and India’s Mahindra Group.

Completing the top 10 were Australia’s Woolworths Group and QBE Insurance Group, South Korea’s Hyundai, Bendigo and Adelaide Bank of Australia.

Moody's: Philippines among Southeast Asia’s rising semiconductor hubs

‘Philippines among Southeast Asia’s rising semiconductor hubs’

Keisha Ta-Asan
Philstar Global
03 September 2025

MANILA, Philippines — The Philippines is emerging as one of Southeast Asia’s growing hubs for semiconductor assembly and testing, with the industry now accounting for about 32 percent of the country’s total goods exports in 2024, according to Moody’s Ratings.

In its latest sector review, Moody’s said the Philippines, alongside Malaysia and Vietnam, is playing a bigger role in the global chip supply chain as multinational firms diversify operations amid United States-China trade tensions and calls to strengthen supply chain resilience.

While Southeast Asia is gaining ground in back-end processing – particularly assembly, testing and packaging – Moody’s cautioned that economies like the Philippines face hurdles in moving up the value chain.

“Technical gaps constrain their ability to capture greater economic value,” the report said, pointing to weaknesses in research and development, talent and infrastructure.

According to Moody’s, Asia continues to dominate global semiconductor manufacturing, commanding more than 75 percent of overall chipmaking capacity, spanning advanced wafer fabrication, materials and assembly.

Despite US-led efforts to reshore production and the intensifying push for self-sufficiency in China, large-scale relocations of chipmaking out of Asia remain “commercially challenging” due to cost advantages and established ecosystems.

In the Philippines, semiconductors remain the backbone of electronics exports, supplying components used in consumer devices, automotive and industrial applications.

However, Moody’s warned that chronic issues such as power supply reliability, logistics bottleneck and limited investment could weigh on the country’s ability to attract higher-value operations in fabrication and design.

Still, the credit watcher said the region is on track to capture around 24 percent of global semiconductor back-end capacity by 2032, up from current levels. Malaysia leads the pack, but the Philippines and Vietnam are expected to expand their roles as cost-competitive alternatives for multinational players.

“Securing a competitive edge will hinge on workforce development, innovation and stronger public-private partnerships,” Moody’s said, adding that without such reforms, Southeast Asian economies risk remaining concentrated in low-margin, labor-intensive segments of the semiconductor chain.

Philippines pitched to be Southeast Asia's pharma manufacturing hub

Philippines tipped to be a regional pharma manufacturing hub

Story by Ronnel W. Domingo 
inquirer.net
23 August 2025

MANILA, Philippines — The Philippines is tipped to become a regional pharmaceutical hub as strategic investments related to this industry pour into the country’s economic zones.

BMI Country Risk & Industry Research, in a commentary, cited recent moves by AstraZeneca, Merck Business Solutions and Royale Life Pharma.

The Department of Trade and Industry earlier this week announced that AstraZeneca Pharmaceuticals Philippines Inc. would invest more than P7 billion over the next few years in the country’s first pharmaceutical innovation hub.

The hub will function as a regional center for digital health technology, R&D collaboration and patient-centered health-care solutions.

Its initial project will be an Oncology Innovation Center, modeled after AstraZeneca’s pharmaceutical hub in the United Kingdom.

“The government is also actively enhancing the pharmaceutical sector through strategic regulatory improvements designed to attract foreign investment, while Peza (Philippine Economic Zone Authority) is promoting pharmaceutical parks to reduce medicine costs through local production,” BMI said.

Specialized facilities

“These specialized pharmaceutical parks offer drugmakers significant advantages including reduced corporate tax rate of 20 percent, thereby providing substantial incentives to localize operations in the Philippines,” the research unit of Fitch Solutions added.

BMI also expects the Philippines to remain “the largest pharmaceutical market in Southeast Asia.”

Still, BMI said that while the domestic pharmaceutical market will grow in the Philippines, it continues to face several constraints.

One is that the Philippines faces significant systemic challenges in attracting and sustaining pharmaceutical research and development.

Another barrier is in the regulatory space.

BMI said that while the Food and Drug Authority officially targets a 254-day timeline for drug approvals and Certificate of Product Registration issuance, the actual process frequently extends to two to four years. This creates substantial market entry delays for new medications.

Ph positions itself as semiconductor hub

PH as semiconductor hub? It's possible

The Manila Times 

23 February 2025

THE Philippines is set to emerge as a major player in the global semiconductor industry within five years, according to industry leaders. President Ferdinand Marcos Jr. has expressed strong support, calling the sector a "fertile area for development."

During a recent meeting of the Semiconductor and Electronics sub-working group (SubWG), stakeholders discussed strategies to enhance the country's semiconductor value chain. Charade Avondo, president of Xinyx Design, emphasized the "need to showcase Filipino talent in IC design and boost the industry's global standing."

A key focus is workforce development, with initiatives like Xinyx Unlocked and Campus Connect aimed at expanding the talent pipeline. Xinyx Design is also partnering with the Technological University of the Philippines to promote microelectronics courses and launching LABS by Xinyx to introduce K-12 students to IC design.

The Philippines is also preparing for international exposure at Semicon Europa in Munich, Germany, in November 2025 to strengthen its presence in the European market.

To support industry growth, the Board of Investments (BOI) is drafting an executive order to streamline project approvals. Additionally, there are efforts to introduce specialized college majors in microelectronics to meet workforce demands.

With strong government backing and coordinated efforts across sectors, the Philippines is positioning itself as a rising force in the global semiconductor industry.

PH manufacturing expands in 2024

PH closes 2024 with stronger manufacturing growth

Jon Viktor D. Cabuenas
GMA Integrated News 

02 January 2024

The Philippine manufacturing sector continued to expand in December to close the year with a rate last seen in April 2022 on the back of higher output and new orders, results of the latest survey conducted by S&P Global released on Thursday showed.

The headline S&P Global Philippines Manufacturing PMI stood at 54.3 in December, higher than the 53.8 in November. This matches the same reading recorded in April 2022, and the joint-strongest since November 2017.

“The Filipino manufacturing sector ended 2024 on a positive note, with further improvements in demand resulting in sharp and significant increases in new orders and output,” S&P Global Market Intelligence economist Maryam Baluch said.

Output and new order growth were the strongest in 32 months, supported by anecdotal evidence of robust underlying demand trends, product diversification, and new client acquisitions. There was also a renewed increase in demand from international markets as new export orders increased for the first time in five months.

“Firms also expanded their purchasing activity to meet production requirements. December highlighted a moderation in inflationary pressures, marking a shift from the spike observed in November. In fact, cost burdens and output charges rose at historically muted rates,” Baluch said.

While higher costs for materials and suppliers were mostly passed onto clients, the survey results showed that there was a renewed moderation in inflationary pressures after the peaks seen in November as cost burdens rose at a rate below historical average.

“While production efficiency allowed manufacturers to stay on top of tasks at hand, it also led to a slight drop in employment, thereby ending a three-month streak of job creation. However, this could be a temporary blip, especially if demand remains resilient as anticipated throughout 2025,” Baluch said.

Respondents reported a minor decrease to their hiring, as firms were able to keep on top of their workloads even with more new orders during the period with the backlog depletion rate the most pronounced in 13 months.

Official government data on manufacturing under the Monthly Integrated Survey of Selected Industries (MISSI) is scheduled to be released on February 7, 2025.—AOL, GMA Integrated News

DTI has an optimistic outlook on PH export performance

DTI upbeat on Philippines export performance

Story by Louella Desiderio 
Philstar Global 
25 June 2024

MANILA, Philippines — The Department of Trade and Industry (DTI) has an optimistic outlook on the country’s export performance following the growth posted in the Philippines’ outbound shipments of goods in April. 

Trade Secretary Alfredo Pascual said he is optimistic about the Philippines’ export performance after the country’s merchandise exports rose by 26.4 percent to $6.2 billion in April this year from $4.9 billion in the same month last year, based on preliminary data released by the Philippine Statistics Authority (PSA).

“The latest data on merchandise exports reflect our commitment to develop a strong and innovative export ecosystem that increases export scale and scope by improving backward and forward linkages, boosting participation in preferential trade agreements and providing institutional support,” Pascual said in a statement.

PSA data also showed the country’s merchandise exports in the January to April period of this year went up by 9.6 percent to reach $24.2 billion from $22.1 billion in the same period last year, showing the export industry’s resilience amid challenges in the global economy.

Electronic products, the country’s top exports, registered a 33.3 percent growth in April, reaching its highest level in the past decade.

Philippine exports of electronic products were valued at $3.57 billion in April this year, higher than the $2.68 billion in the same month a year ago.

Other commodity groups, which registered growth in exports in April this year are other manufactured goods, other mineral products, coconut oil, ignition wiring sets and other wiring sets used in vehicles, aircraft and ships, machinery and transport equipment, chemicals, gold and fresh bananas.

He said industry development involves expanding the country’s current export capabilities.

“These strategic actions define what we mean by an industry-development-centric approach to growing our export sector and guiding the programs we implement,” he said.

DTI-Export Marketing Bureau (EMB) director Bianca Pearl Sykimte said the agency has been stepping up efforts to make exporter services more accessible through digitalization and the conduct of more engagements in the regions.

“Export matching and information services of the Department will soon be accessible through digital platforms,” she said.

As part of efforts to increase the Philippines’ export share in the global market, the DTI recently partnered with QSweep Tech Services Corp. to promote Philippine exporters in the digital space through “PHX Source,” an online platform aimed at providing greater visibility and access to international markets.

Through the platform, exporters will be able to showcase their products and services, connect with potential buyers and partners and gain insights through real-time analytics.

DTI-EMB will be working with other trade and investment promotion offices in getting exporters on board the platform.

The DTI is also working with key export enablers to provide comprehensive support services to exporters through initiatives like the Usapang Exports sessions to discuss various export-related services and topics and provide export counseling.

In addition, initiatives are being undertaken to improve backward linkages by creating and linking supplier networks within the country to reduce import dependence and facilitate greater participation in global value chains.

In the area of services, the DTI said the creative industry is projected to grow by six to eight percent this year, with game development as a significant driver.

With the Philippines set to participate in the External Development Summit in Canada, an international event focused on external development for art, animation, audio, software engineering, quality assurance and localization to be held this September, the DTI expects opportunities to be made available to the country’s game development industry to expand its reach, establish new connections and showcase its capabilities.

Under the Philippine Export Development Plan (PEDP), the aim is for the Philippines’ total exports covering goods and services to reach $143.4 billion this year.

Last year, the country’s total exports rose by 4.8 percent to $103.6 billion from $98.8 billion in 2022, but fell short of the $126.8 billon goal for 2023 under the PEDP.

Yokohama, Minebeamitsumi commit P7.4 billion in new PH investments

Yokohama, Minebeamitsumi commit P7.4 billion in new PH investments

Story by Alden M. Monzon
Inquirer.net
25 June 2024

Japan-based tire manufacturer Yokohama Rubber Co. Ltd and electronics manufacturing company MinebeaMitsumi have expressed interest to invest at least P7.4 billion in the Philippines, the Department of Trade and Industry (DTI) said on Monday.

Trade Secretary Alfredo Pascual met with representatives of these companies last week during his trip to Japan from June 19 to June 21.

“They have plans of expanding their semiconductor factory in Cebu,” Pascual said of MinebeaMitsumi’s plans, “And then they might set up also a solar farm to support their factory in Cebu.”As for Yokohama, Pascual said that it plans to expand its local production capacity, being the only tire manufacturer left in the Philippines.

During the trip, Pascual had also met with Mitsubishi Corp., the Sumitomo Corp., Sojitz Corp., Murata Manufacturing Co., Ltd., the Yokohama Rubber Co. Ltd., Taiheiyo Cement Corp., and Marubeni Corp., which reaffirmed around P60 billion in investments in the Philippines.

“We will continue to work closely with our Japanese partners to ensure a stable and competitive business environment in the Philippines,” Pascual said in a statement over the weekend.

Peza mission

Meanwhile, the Philippine Economic Zone Authority (Peza) said that at least five Japanese companies were conducting due diligence for their proposed ecozone project in the Philippines.

“These specific activities include manufacturing and assembly of a jet bridge, smart parking structure and submersible pump for waste water treatment, digital health back office support, solar energy development, agro-processing and food export cargo logistics,” Peza Director General Tereso Panga said in a statement.

The Peza held its third investment mission to Japan for the year on June 17 to June 21, with the trip and activities organized by the Science Park of the Philippines Inc. , one of the leading economic zone developers in the country. INQ

Recto: PH an 'economic giant' by 2033

Recto: PH an 'economic giant' by 2033

By Anna Leah Gonzales
Philippine News Agency
May 27, 2024

MANILA – The Philippine economy is expected to continue posting strong growth and is seen to be one of the economic giants by 2033, Department of Finance (DOF) Secretary Ralph Recto said on Monday.

In his speech at the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, Recto said global research firms and analysts expect the Philippines to grow by 5.8 to 6.3 percent this year, outperforming ASEAN economies.

For 2025, Philippine economic growth is projected to hit 5.9 percent to 6.5 percent.

"This trajectory puts us firmly on course to become a trillion-dollar economy in less than a decade. This means that by 2033, our economy will nearly triple in size, placing us in the league of economic giants like China, Japan, India, and South Korea," Recto said.

"And we are expected to continue outpacing the growth of Asia's economic powerhouses in the years to come. Fast forward to 2075, the Philippines will overtake France to become the 14th largest economy in the world," he said.

Recto assured the public that the government is addressing bottlenecks to encourage investments in high-priority sectors.

"These include infrastructure, renewable energy and power, critical minerals, financial services, healthcare, consumer and retail, manufacturing, and ITBPM (information technology and business process management), among others," he said.

Recto said the government is also intensifying efforts to address investor concerns and is doubling efforts to harness the country's workforce.

He said these efforts aim to provide pathways out of poverty for about 14 million Filipinos, or cutting poverty incidence to 9 percent, before or at the end of the President's term.

"This is the single most important number that we aim to achieve. Even with headwinds along the way, there are a lot of reasons to be confident and excited about our nation’s future," he added. (PNA)

Marcos wants Philippines to become hub for smart manufacturing

Marcos wants Philippines to become hub for smart manufacturing

Louella Desiderio, Alexis Romero 
The Philippine Star
May 22, 2024

MANILA, Philippines — The Philippines is counting on its strengths and engagements to transform its economy into a regional hub for smart and sustainable manufacturing and services, President Marcos said, as he urged investors to unlock the growth opportunities offered by the country’s “thriving” economy.

In his keynote remarks during the Indo-Pacific Business Forum in Taguig City, Marcos said the Philippines occupies a “strategic position” in the region and is leveraging its geopolitical location, economic engagements and participation in regional agreements.

He noted that the Indo-Pacific region accounts for over a third of global economic activity, a condition that he said presents “immense opportunities” for the Philippines.

The President described the Philippines’ economic achievements as “outstanding,” citing the Philippines’ 5.5 percent GDP growth last year, which surpassed major economies in Asia and the four consecutive months of expansion of its foreign direct investments (FDIs).

“Through these economic strengths, we aspire to transform the Philippine economy into a regional hub for smart and sustainable manufacturing and (services),” he said.

The Chief Executive reiterated the importance of forging partnerships, saying Indo-Pacific Economic Forum partner-countries play a key role in the Philippines’ robust economic growth and contribute substantially to its FDI and other approved investments.

Indo-Pacific investors have the potential to contribute significantly to the expansion of micro, small and medium enterprises, which contribute the bulk of the employment in the country, according to Marcos.

Luzon Economic Corridor

Marcos went on to enumerate measures and collaborations that are seen to make the Philippines a more attractive investment destination.

He mentioned the Luzon Economic Corridor, a project launched during last month’s historic trilateral summit in Washington.

He said the government has earmarked key projects to spur growth in the corridor and to create strategic connections between Subic, Clark and the Calabarzon region, which he called “a prime location for export-manufacturing firms.”

“These initiatives will enhance freight transport services, mobility and access to key economic zones, ensuring business continuity and positioning the Philippines as a regional hub for agribusiness and logistics in the Asia-Pacific,” he added.

The President likewise highlighted the legislation that allows 100 percent foreign ownership of renewable energy sources; efforts to develop priority industries like electronics, semiconductors and critical minerals and the government-led strategy to enhance digital infrastructure, connectivity and business facilitation.

“The Philippines also offers a strategic location with a robust experience and record in the IT-BPM (information technology-business process management) competencies and a strong direction towards upgrading business process outsourcing into knowledge process outsourcing such as market intelligence, business analytics, legal services and AI (artificial intelligence), amongst others,” he said.

“Furthermore, the Philippines can serve as a platform for companies to access the more than 600-million-strong Southeast Asian consumer market. Our proximity to these growing economies can allow them to enter other supply chains and be part of inter-country economic systems, creating more opportunities for collaboration and for partnership,” he added.

Marcos expressed optimism that the Build Better More infrastructure program, which encompasses 185 priority projects worth P9.5 trillion, will transform the Philippines’ infrastructure landscape and contribute to its goal to be the next logistics hub in Asia.

“But achieving this requires a whole-of-nation approach, particularly private investments. Therefore, we invite foreign investors to participate in this endeavor through public-private partnerships, engineering, procurement and construction contracts, and for feasibility studies, as well,” he said.

The President also talked about laws and policies aimed at luring more investors, including the Public-Private Partnership Code, which he said has accelerated the delivery of critical projects; the Maharlika Investment Fund, the sovereign wealth fund that seeks to support critical infrastructure projects; the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act; the Ease of Doing Business Act and the executive order on green lanes for strategic investments.

“Upcoming in the pipeline is the CREATE More Act, which represents a significant leap forward as we expand and refine the incentives introduced under the original CREATE Act. Through this, we are making the Philippines even more attractive for investments, both local and foreign,” he said. — Sheila Crisostomo

PH manufacturing posted high growth

PH manufacturing growth hit five-month high in April

By JON VIKTOR D. CABUENAS, 
GMA Integrated News
May 2, 2024 

The Philippine manufacturing sector posted its biggest growth in five months in April on the back of higher output and an increase in new orders, results of the latest survey conducted by S&P Global released on Thursday showed.

The headline S&P Global Philippines Manufacturing PMI stood at 52.2 in April, up from 50.9 in March. A reading above 50.0 indicates an expansion, while levels below the threshold indicate a contraction.

"Building on growth seen in the first quarter of the year, the Filipino manufacturing sector showcased further gains in April," S&P Global Market Intelligence economist Maryam Baluch said in an accompanying statement.

"A quicker rate of expansion was observed for new orders, which in turn triggered a renewed and solid rise in production. Additionally, business from overseas markets also expanded at a stronger rate," she added.

New orders posted the biggest growth since November 2022, while new export orders expanded for the third straight month and at the fastest pace in five months. New work also posted the biggest gain in four months.

The same report found that purchasing efforts at manufacturers saw the quickest upturn in nine months, due to "favourable" demand conditions and higher production requirements, with pre-production stocks accumulated the fastest in 12 months and post-production in 17 months.

Employment continued to grow, but eased slightly from the expansion in March as some firms struggled to complete work in hand, bringing the backlog depletion at the weakest level since August 2023.

Charges for the month were broadly unchanged from March, with input price inflation modest overall.

"Looking ahead, sentiment across the Philippines manufacturing sector was largely positive with nearly a quarter of surveyed businesses predicting growth in production. That said, the degree of confidence slipped to a four-year low," S&P Global said.

The same report found that purchasing efforts at manufacturers saw the quickest upturn in nine months, due to "favourable" demand conditions and higher production requirements, with pre-production stocks accumulated the fastest in 12 months and post-production in 17 months.

Employment continued to grow, but eased slightly from the expansion in March as some firms struggled to complete work in hand, bringing the backlog depletion at the weakest level since August 2023.

Charges for the month were broadly unchanged from March, with input price inflation modest overall.

"Looking ahead, sentiment across the Philippines manufacturing sector was largely positive with nearly a quarter of surveyed businesses predicting growth in production. That said, the degree of confidence slipped to a four-year low," S&P Global said.