Enunina “Nina” Mangio, president of the Philippine Chamber of Commerce and Industry (PCCI), expressed hope that government agencies reassess further the supply chain and logistics cost in the country to cushion the impact of the global economic slowdown, especially on micro and small enterprises.
“We’re already looking at supply chain, but the war broke out,” said Mangio referring to the Middle East crisis.
“We are reviewing our cost of logistics, shipping charges and imposed taxes,” said Mangio, adding this initiative is being undertaken together with the Philippine Ports Authority and the Bureau of Customs.
She urged for urgency in the review and completion in 60 days or before yearend.
Undersecretary Mary Jean Pacheco of the Department of Trade and Industry (DTI) has been vocal about the high logistics costs in the Philippines, citing a study that showed logistics costs accounting for 27.5 percent of the country’s GDP. This is significantly higher compared to other countries like Japan (8%), the US (9%), and other ASEAN nations. Pacheco, who is in charge of DTI’s Logistics and Supply Chain group, has emphasized the need to improve logistics efficiency and reduce costs to make goods more accessible and affordable.
Although, there has been a lull in hostilities between Iran and Israel, global economic forecasts dimmed, and so is the Philippines’. She said they are one with the government economic managers in the downward revision of growth targets for the year.
“The impact from the increase in fuel prices and tariffs is quite big on the business sector and the economy in general,” Mangio told reporters during the launch of the Metro Manila Business Conference, which is happening on Aug. 7-8 at SEDA Vertis North with the theme “Trade. Tourism. Technology: Synergy for Progress”.
“So, let’s revisit our supply chain and technology to improve our processes and reduce cost,” she said, citing how the country’s economic managers are working hard to help mitigate the impact of geopolitics to the local economy.
For instance, she cited the issue of wages where the Regional Tripartite Wages and Productivity Board granted a P50 daily wage hike starting July 18, 2225 for workers in the National Capital Region.
She stressed that the P50 daily wage increase, which is the highest regional wage hike in the country, will further disadvantage the informal sector, such drivers, vendors, tricycle drivers or those self-employed who account for 70 percent of total workforce in the country.
The Philippines is a bit fortunate with the 17 percent reciprocal tariffs imposed by the US compared to a lot higher rates for other countries, she said.
The government is also negotiating for a US-Philippine free trade agreement for better trade concessions with the US.
