With the country posting a 7.8 percent growth in the gross domestic product (GDP) in the first quarter of the year, local businessmen are hoping for more high value investments in the manufacturing and construction industries.
Philip Tan, Mandaue Chamber of Commerce and Industry (MCCI), said yesterday that investments in these key sectors especially the manufacturing would fuel more growth into the local economy.
“What I mean with high value are those manufacturing companies that use our raw materials, manufacture them into something of higher value, and then sells them to other countries. That way we generate more income for the country and at the same time generate more jobs,” Tan said
He said that most of the manufacturing companies in Cebu at present only assemble components here using mostly imported materials, which would mean that the earnings we would get would be only from the salaries of the Cebuanos hired.
more attractive
Gordon Alan Joseph, president of the Cebu Business Club, said he is optimistic of Cebu’s chances of growth especially with the high GDP growth rate because it is making Cebu and the country more attractive to investors.
“I think for the moment it will be felt in investor interest in Cebu. But it does take time to translate interest into actual investments and jobs. Growth must be consistent before it can be inclusive,” Joseph said.
“We have to also be conscious that the investors look at other aspects like infrastructure, quality of workforce, cost and reliability of water and power, ease of doing business, and other aspects that will affect their investments before they decide to come and pour in investments,” he said.
Tan also said that despite the GDP growth, it would take time for the benefits of the growth to trickle down to the base of the economic pyramid.
Prudencio Gesta, past president of the Cebu Chamber of Commerce and Industry (CCCI), agreed with Tan’s observations.
Gesta however, said that in Cebu, there were already signs of these benefits being seen in small business activities at the community level or at the sidewalk in major thoroughfares in the city and even the country.
He attributed this to tourism and real estate developments.