PHL manufacturers need to move up the value chain

PHILIPPINE MANUFACTURERS should go up the value chain to produce more globally competitive export products and cater to the country’s growing domestic base amid global disruptions, according to industry stakeholders.

- Justine Irish D. Tabile

Federation of Philippine Industries President John Reinier H. Dizon said that recent global shocks revealed the country’s import dependency for some products.

“I think a couple of years ago, everyone can still remember when the pandemic hit us all. And for me, the key learning there is it actually exposed our risk that we are dependent on the global supply chain,” he said at the BusinessWorld Forecast 2026 on Tuesday.

Mr. Dizon recalled that during the pandemic the Philippines had to manufacture basic items such as face masks. “Then over time we were able to actually develop local industries to support those things,” he added.

In the last 25 years, he said that the Philippines opened its borders to Association of Southeast Asian Nations (ASEAN) members and forged bilateral agreements with several countries.

“Now, there are pros and cons to such free trade, and there is nothing wrong with free trade. It obviously helps companies and individuals procure cheaper products... but many other countries have placed more safeguards visa-vis the Philippines,” Mr. Dizon said.

“The Philippines was maybe a little bit more aggressive, and in hindsight, as a consequence, several industries actually faltered,” he added.

Within ASEAN, he said that the Philippines recorded the biggest trade deficit at P54 billion in 2024.