THE country’s factory output moderately improved in February 2020 as it expanded by three percent, data released by the Philippine Statistics Authority showed.
According to the latest Monthly Integrated Survey of Selected Industries, the volume of production index saw an improvement from a 9.3 percent decline last year.
The value of production index, despite down by 1.8 percent, trended upwards relative to the 6.2 percent drop recorded in February 2019.
The National Economic and Development Authority (NEDA) said in a statement amid the fight against the coronavirus disease 2019 (COVID-19), the government needs to prioritize support for the production of essential goods and personal protective equipment.
“For March, we expect that the enhanced community quarantine has weighed heavily on the domestic demand on manufacturing products,” Ernesto Pernia, socioeconomic planning secretary, said yesterday.
“Strategies to help the manufacturing establishments affected by the outbreak have to be put in place,” he added.
NEDA expects that manufactured goods that will likely increase in production in the coming months are food, beverages, chemical products and health-related manufactures.
“We need a regular review of rules or limitations imposed due to the health crisis. It is crucial to avoid delimiting production and distribution capacity,” Pernia said.
“This is to ensure that there is enough supply of food and other essentials since these are vital for the communities affected by COVID-19,” he added.
Pernia also said identifying sources of supply of raw materials, and ensuring that the supply and distribution chain remains unhampered are key elements to ensure sustained production and distribution of essential goods and services.
“We also expect that the global supply chain disruptions brought by the pandemic will have a negative effect on the manufacturing and merchandise exports,” Pernia said.
According to NEDA, the impact of COVID-19 on other countries is also expected to be felt in the Philippines via tourism, aviation, trade and the overseas Filipino workers’ remittances.
“The economy should be able to quickly adapt to and thrive under the new normal. Utilizing digital platforms is crucial in optimizing production and distribution of goods and services,” Pernia said.
“Business continuity plans must also be formulated, particularly for the most vulnerable micro, small and medium enterprises,” he added.
