Quote Originally Posted by jpdm View Post
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