Support the Local Auto Industry

[jpdm]

..The government must impose non-tariff barriers in order to kill the striving illegal importation of vehicles through the free ports...

..this is to level the playing field...legitimate importers of vehicles spend millions of pesos in taxes...

..the government should do its homework.

[True Faith]

Agree jpdm...

It will be a big risk to re-impose high tariff rates but we can resort to other means...

The BOI should be creative about this to lure more domestic manufacturers and not mere importers and assemblers..

[jpdm]

I hope the government will finally come up with a study and a policy to protect the local industry from a regime of almost zero tariff (Free Trade)

[jpdm]

I hope the government will finally come up with a study and a policy to protect the local industry...

Unfortunately, our inutile and stupid government has practically not done anything.

This according to this study:

An international study has pointed to incompetent [SIZE=4]government policies as one of the major reasons why the local auto industry has been overtaken by neighboring Southeast Asian countries, particularly Thailand. [/SIZE]
The study traces the root of the problem of the auto industry to the [SIZE=3]poorly designed and poorly implemented social contracts. [/SIZE]



The ireport made by Ferdinand O. Maquito, a visiting researcher from the Japan-based Sekiguchi Global Research Association (SGRA), states that the problem in the auto industry can be solved by[SIZE=3] creating a special body that will closely monitor the performance of the sector and the amount of support given by the government. [/SIZE]



“There is no close coordination between the government and the industry,” Maquito said.



He says automotive companies prefer to invest in Thailand because the Thai government closely works with the industry. “Our research showed that the car companies in Thailand were always approached by the government.”


In the Philippines, meanwhile, Maquito says the government is only giving incentives to encourage investors to come in.



“Usually the government [SIZE=3]gives one-shot deals[/SIZE] but there is really no clear guidance from the government,” he notes.


[SIZE=3]Maquito points out they are studying how the government can give more perks to companies that are producing more cars in the country. [/SIZE]



Aside from giving more perks, he says frequent revision of programs by the government tend to confuse both potential and existing investors.
“The government keeps changing the rules in the middle of the game,” he says. “Worse, the industry players are not consulted every time there are changes.”



Still another reason why auto companies are reluctant to enter the Philippines is the country’s sensitivity to macroeconomic shocks such as political disruptions and the perceived instability of the government.

From Philippine Star
[SIZE=2]Yearender: Local auto industry's growth slows in 2008[/SIZE]
By Ma. Elisa P. Osorio
Updated December 31, 2008 12:00 AM

[CVT]

Aside from giving more perks, he says frequent revision of programs by the government tend to confuse both potential and existing investors.
“The government keeps changing the rules in the middle of the game,” he says. “Worse, the industry players are not consulted every time there are changes.”

Agree here. The policies change like the weather in our country. Say, like every 10minutes.

Look at Jan 2, being declared a holiday at the last minute. May be a bit off tangent or exaggerated on this. However, it gives us a perspective on the way our government conceptualizes and implements policies in a microcosm....

7202:bruce_lee:

[uls]

like i keep saying over and over

the Phils. is not investor friendly

[jpdm]

I hope the government will heed the call of CAMPI

Lee said their group recently concluded a planning session with the Board of Investments and the Department of Trade and Industry which could result in policies and options that support directions to retain and expand CKD manufacturing in the country.


This, she said, includes [SIZE=3]excise tax preference for locally assembled vehicles and the industry’s permanent inclusion in the annual Investment Priorities Plan, allowing them to continuously enjoy ITH for new projects.[/SIZE]


“First, it is imperative that assistance and efforts be made to strengthen the local CKD manufacturing and assembly of vehicles in the country while, at the same time, providing for all other auto sectors [nonassembly] to grow as well, in an environment that is conducive to increased investments in the country that will benefit all industry players and the country as a whole.


Campi also wants opportunities for domestic auto manufacturers to participate in the refleeting and modernization program of the government.


Business Mirror
February 6, 2008
Max V. de Leon

[jpdm]

opps double post

[ocanursjr]

like i keep saying over and over

the Phils. is not investor friendly

Agree * uls, too many red tape.

Governed by mobs.

Too much bureaucracy...