Trade Secretary Ramon Lopez sees the construction industry rebounding in 2021 after spending cuts in 2020.
In his speech at the Philippine Overseas Construction Board (POCB) Virtual Construction Conference, Lopez said before the new coronavirus disease 2019 (COVID-19), construction was the only one that was only industry posting double-digit growth due to the massive “Build Build Build” infrastructure program and the complementing private sector development plans.
Total construction spending in 2019 was at P3.2 trillion, which was around 17 percent of the GDP but due limitations caused by the pandemic, total construction spending went down in 2020 to P2.2 trillion, or 13 percent of the GDP,
Micro, small and medium enterprises comprised 97 percent of the over 15,000 licensed contractors of the Philippine Contractors Accreditation Board.
“The pandemic has highlighted the need for the industry to raise their productivity, invest in capability-building programs, and push for greater innovation and the use of new technologies,” Lopez said.
While construction opportunities in the domestic market are abundant Lopez said the industry needs to be versatile to take advantage of the opportunities in the global market, citing the country’s participation in free trade agreements (FTAs) in the construction industry such as general construction work for buildings and civil engineering, etc.
“FTAs offer a more stable, predictable and fair environment for Filipino businesses and investments, including those in the construction and related engineering sector,” Lopez said
Philippine-based businesses are guaranteed liberal equity arrangements through its existing FTAs with Asean, Australia, China, the European Free Trade Association , Hong Kong, India, Japan, Korea, and New Zealand.
