Upbeat economy seen in Calabarzon

A growing economy in Cavite, Laguna, Batangas, Rizal and Quezon (Calabarzon) may well benefit from recent calamities and economic downturn outside the country, according to government and business leaders.

Trade experts also projected more foreign investments this year to generate more jobs and fuel commercial activities in the region.

With its many facilities and economic zones, Calabarzon, which is composed of first-class provinces south of Metro Manila, is regarded as the industrial powerhouse of the Philippines.

Although it has not come up with a specific growth rate, the government is optimistic about the uptrend in gross regional domestic product (GRDP), according to Liberty Abellon, deputy regional director of the National Economic and Development Authority.

Floods, quake

In 2009, the GRDP was P802,837,489, a slight increase from the 2008 figure of P801,841,723, latest data from the National Statistical Coordination Board showed. In the 2009 figure, 42.9 percent came from the service sector (41.5 percent in 2008), 38.3 percent from industry (39.7 percent), and 18.8 percent from agriculture, forestry and fisheries with contribution (18.7 percent).

Abellon said the calamities that hit other Asian countries and the downturn in the European and US economies might have affected the Calabarzon. Last year, a massive earthquake and tsunami hit Japan while floods submerged many parts of Thailand.

“Despite these, we are hopeful that the economy (in Calabarzon) will pick up,” she said, adding that doors might be opened for businessmen “to look at Calabarzon as an alternative place for investments.”

Marilou Toledo, trade regional director, also expressed optimism, citing the fast attrition rate in China as reason for foreign investors going to the Calabarzon.

The region, whose population of 11,743,110 in 2007 even surpassed Metro Manila’s 11.5 million, offers a large pool of skilled human resources, she said.

For instance, she said, Hitachi Global Storage Technologies, a manufacturer of hard-disk drives, is expected to open a facility in Canlubang in Calamba City, Laguna, this year.

Calabarzon’s edge over other regions, aside from proximity to Metro Manila, is its “balanced economy,” Toledo said. “We have here the industries, agriculture, service sector, tourism. All the basics can be found here.”

Moreover, the region has complete transportation and communication facilities.

Recently, the Department of Budget Management announced the disbursement of P1 billion for road maintenance programs, of which the biggest sum of P150 million would go to Calabarzon for the asphalt overlay of the Tagaytay-Nasugbu road in Batangas.

While the economy is mainly driven by foreign investors, government agencies are pushing for the sustainability of local industries through interventions in the small and medium enterprises (SMEs) “throughout the value chain, from plantation to marketing,” Toledo said.

For instance, in the coconut industry, in which Quezon, Laguna and Batangas are among the top producers in the country, the government has set programs for replanting of coconut trees to better boost this sector.

The Department of Trade and Industry (DTI) is coordinating with local government units for the streamlining of business registration systems as incentive to business operators and traders.

Business community

The business community shares a similar rosy outlook as operations of export-based industries have returned back to “normal” at the start of the year.

According to Mario Mamon, chair of the Laguna Chamber of Commerce and Industries, although locally based manufacturers on the far-end of the supply chain were indirectly affected by the Thailand flooding and the Japan earthquake, they felt the slowdown and some plants even stopped operations.

“Toyota, for instance, had to scale down by 50 percent during the first three months immediately after the Japan earthquake,” said Charlie Dajao, trade regional information officer.

But on the other hand, these external conditions gave Calabarzon a “second opportunity” to host companies that plan to leave flood and quake-prone areas abroad, he said.

SMEs will remain a thrust of the region’s economy, he said. In 2011, the DTI “assisted” 3,747 SMEs through trainings on entrepreneurship, microfinance, management and accounting. It plans to increase the number by 10 percent this year.