"You can put up a memorial park in ARMM and it is going to be tax exempt"
Former Usec (he said he was undesxd during his tenure) and BOI head Cristino Panlillo said that governnment prime overs aims to develop and revive manufacturing prowess in the PHL in order to cover the % growth rate of the population. While PHL economy is 66% in the service sector, still he maintains that more value added/wealth will be created for PHL per capita growth (also noticed by Dr. Usui - low labor productivity) and only $2,300 per capita GDP (we could not keep up with rest of Asian countries.)
He said that there are four stages in the investment model he developed while Usec (two years ago)
1. prime movers --> 2. jobs, salaries profits --->3 increased purchasing power/investment -->absorptive capacity. (this is vs. the social nature of feeding the people with loans as in Greece, Italy, Spain and even in US.
2. government policy:
l. socio political : peace and order, industrial peace, CCIT, govt revenues, infrastructures.
2. macro economic: exchange rate, peace and order, incentive, supply chain avalaiblity.
3. micro - smes programs - CITEM garments. electronics, equipment sharing as in coir extrusion and vacuum packing which are expensive.
On the question of industry planning raised by a UP Economics participant, he obliquely answered (also in response to the trickle down effect), by giving an example:
l. Philippines which became number in contact center worldwide (was not planned); it happenned because of the opportunity and the facilities, English speaking graduates. The govt did not plan it that way (so that is effectuation/result of algorithm)
2. PHL is No 4 in shipbuilding. Why because 80% of shipbuilding is welding. Japanese senior welders get $4,000 per month. Hanjin senior welders in Subic get P20,000 per month. Just any high school grad or even elementary grads can be taught how to weld.
3. Tourism too allows unskilled, non college grads to do many things: scuba diving instructor, boatman, hotel keepers,
This happen, not because of govt planning but because these are the available skills and resourcdes in the PHL
4. PHL may soon be the world center for manfacture of printers. Most printer manufacturers are here: Toshiba, Canon, HP. Lexmark, Brother. Why? Because most the workers, and the suppliers of parts are here in the PHL
DTI Annual Report of 2011
