Phl economic upgrade needs manufacturing backing — FPI
The recent reclassification is not just a statistical achievement but a pivotal moment that should drive stronger support for local industries.
Daily TribuneThe recent reclassification is not just a statistical achievement but a pivotal moment that should drive stronger support for local industries.
PRESIDENT Ferdinand Marcos Jr. visited a manufacturing plant in General Trias City, Cavite. The Federation of Philippine Industries stressed that local manufacturers need further support as the country now belongs to an upper-middle-income economy. The FPI said a stronger domestic market gives investors greater confidence that the Philippines is becoming a more attractive place to do business.
The Federation of Philippine Industries (FPI) urged the Marcos Jr. administration to further support the country’s manufacturing industry following the upgrade of the Philippines into an upper middle-income economy by the World Bank.
FPI president Jesus Arranza, in a statement on Sunday, said the recent reclassification is not just a statistical achievement but a pivotal moment that should drive stronger support for local industries.
Arranza said it signals that the economic policies of the administration of President Ferdinand Marcos Jr. “are hitting the target marks, [which] will attract investors to do business in the Philippines because a stronger domestic market has been developed.”
The World Bank last week upgraded the Philippines to the rank of upper-middle-income country after the country’s gross national income per capita met the $4,636–$4,850 threshold.
“This recognition shows that many of the government’s economic policies are beginning to achieve their intended objectives,” Arranza said. “A stronger domestic market gives investors greater confidence that the Philippines is becoming a more attractive place to do business.”
DBP backing
Arranza said the Development Bank of the Philippines echoed their observations, as in its post on Facebook, the state bank said the country’s graduation to upper middle-income status is more than an economic milestone.
“It’s a significant indicator that the country is ready for bigger investments, stronger industries, and advanced structural reforms,” the DBP said.
To the nation’s development bank, “it serves as fuel for the work ahead as we continue to finance infrastructure, climate resilience, and food security projects that carry this progress into every Filipino community,” it added.
Concrete actions
The FPI leader further stressed that the milestone must translate into concrete actions, particularly within government-owned and controlled corporations, urging these entities to consciously prioritize locally manufactured products whenever feasible, framing government procurement as a powerful tool for national development.
“Every government purchase is more than an accounting transaction. It is also an economic vote,” Arranza emphasized. “When public institutions purchase locally produced goods, they sustain factories, preserve jobs, encourage innovation, and expand production capacity. Such expenditures should not be viewed merely as costs — they are investments in the productive strength of the nation.”
