The Philippine Chamber of Commerce and Industry (PCCI) said over the weekend that the country could attract more foreign investments if the administration of President Ferdinand R. Marcos Jr. can ensure the availability and affordability of raw materials for the manufacture of goods, especially for food and beverages.
PCCI President George Barcelon said he has discussed the importance of ensuring steady supply of essential ingredients with President Ferdinand R. Marcos Jr. not only to attract foreign investments but also to ensure lower prices of consumer goods.
“We should be more open to importing ingredients that go into food manufacturing and rationalize it to make foreign investors realize that there is great potential in investing in the country,” he said.
“That’s something we end up discussing with President BBM during our many trips abroad,” Barcelon added.
In particular, the PCCI head cited the case of high sugar prices that puts local food manufacturers at a disadvantage compared with our neighbors in the Asean region.
“Definitely with the high cost of sugar, that puts our local manufacturing at a disadvantage,” he noted.
Barcelon cited as an example a popular 3-in-1 coffee brand that has captured a huge chunk of the domestic market because it is manufactured in Indonesia where the price of sugar is much cheaper.
“The international market price for sugar as we all know is below P40, but here it’s still somewhere double the price internationally,” he said.
“Another effect, the price of finished food that needs sugar to be processed is high, and the consumers are taking the brunt, especially the poor and marginalized,” he noted. “And inflation could be lower if the price of ingredients can be lowered.”
Barcelon also said manufacturers could not plan for expansion, and consequently the hiring of new workers, because of the uncertainty in the supply of affordable ingredients.
“In manufacturing, the purchase of raw materials is planned months ahead, not at the last minute,” he said. “There is planning involved, so it has a detrimental effect on the job side.”
“To sustain economic growth, we should attract more foreign investors. Otherwise, they may opt to invest in other countries that are efficient in helping their own industry players,” Barcelon said.