According to the Philippine "Business World" (Business World) reported on April 8, preliminary data from the Philippine Statistics Authority showed that in February 2022, the Philippine manufacturing output index increased by 84.3% year-on-year, the highest growth rate in the past five months, higher than January's 17.1% is much higher than February 2021's -43.9%. In the month, the Philippine Manufacturing Purchasing Managers Index was 52.8, the highest since December 2018.
Manufacturing accounts for nearly a quarter of the Philippines' gross domestic product. The industry recorded strong growth of more than 6% in 2016 and was the largest contributor to the country's GDP growth last year. Important manufacturing industries in the Philippines include semiconductors, electronic components, refined petroleum products, computers, peripherals and accessories, and processed foods. The Philippines is in the mid-range of ASEAN countries in terms of gross manufacturing value added (GVA) (see chart below), surpassing Malaysia and well ahead of Vietnam, although Vietnam has been rapidly industrializing recently, thanks to FDI-led electronics manufacturing or assembled.
Manufacturing is also an FDI magnet in the Philippines, compared to most other sectors. The Department of Trade and Industry (DTI), along with related investment promotion agencies, devises the policies for attracting manufacturing investment. Priorities are given to export manufacturing and low‑pollution light industries that can generate local employment, such as semiconductors and consumer electronics.
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