Subic-Clark as catalyst: Igniting manufacturing and MSME growth

At a time when the global economy is in flux when supply chains are shifting and sustainability is a baseline, not a bonus the Philippines stands at a pivotal crossroads.

- ALFREDO E. PASCUAL

The question before us is not whether we can grow. We are already the fastest-growing economy in one of the world's fastest-growing regions. The question is: Can we transform?

THE TWIN ENGINES OF GROWTH

If we want to enter a virtuous cycle of sustained, inclusive growth, we must build not just consume. We must do so by fully embracing the manufacturing sector and empowering our micro-, small-, and medium-sized enterprises (MSMEs). These two forces large-scale industry and agile, homegrown businesses are not mutually exclusive. They are the twin engines of national prosperity. Currently, they are under-leveraged.

For decades, our economy has leaned heavily on services and remittances. While these sectors have generated stability, they have not built the productive backbone needed to move up the global value chain. We continue to export minerals instead of electronics, bananas instead of food brands. The value created abroad from our raw materials far exceeds what we capture at home.

This has to change. Manufacturing is not just about physical output. It creates jobs for every skill level, drives technological innovation, and forges deep links to both domestic suppliers and global markets. It is the engine that powers middle-class expansion and economic self-sufficiency.

The good news? We have a model playbook and it has been tested across the ASEAN. Malaysia did not stop at palm oil extraction; it built an ecosystem around value-added production, chemicals, and consumer goods. Thailand linked farmers to food tech clusters and created globally competitive agribusinesses. Vietnam transitioned from low-end textiles to electronics manufacturing by systematically prioritizing value-added production and foreign investment.

And here is the common thread: none of them succeeded by focusing solely on large companies. MSMEs played central roles not as marginal actors, but as integral parts of modern supply chains.