Pernia bats for economic rebalancing

MANILA, Philippines - The Philippine economy must rebalance its economy by increasing the share of agriculture and manufacturing to economic output and relying less on the services sector to create more jobs, incoming socioeconomic planning secretary Ernesto Pernia said.

In a presentation at the special joint meeting of the Makati Business Club and the US-Philippines Society, Pernia noted while the economy has benefited from increased investments and the rise of the services sector, progress remains concentrated in the capital and is largely unfelt in the provinces.

As such, there is a need to revive the agriculture and manufacturing sectors as these industries have the capacity to create more jobs in the countryside.

“To reduce poverty and attain inclusive growth, we need economic rebalancing,” said Pernia.

“The Philippine economy is in a high growth trajectory since the start of the Aquino administration. Industry and investment are becoming significant drivers of growth but agriculture has been lethargic,” he told business leaders.

“Rebalancing does not mean that we will stiffle the services sector. It means agriculture and industry must grow faster,” he added.

Businessmen were quick to point out that in pursuing this growth path, the government must identify specific business subsectors tied to agriculture and manufacturing that can be developed at scale.

“We would like to know which agri exports would develop. We are still predominantly an exporter of coconut oil; we need to diversify (our exports),” said businessman Manuel V. Pangilinan, who has been searching for lucrative investments in agriculture in the country over the past few years.

He also said that should the government pursue the rebalancing towards agriculture and manufacturing, it must guide the private sector on the extent that the manufacturing sector can provide jobs.

“We need to know to what extent the manufacturing industry can address job creation,” he said.