A top executive of global bank Citi said manufacturing is key to unlock the growth potential of the Philippines.
Speaking at the Global Leaders Series hosted by the Makati Business Club, Citi Asia South head Amol Gupte noted that the Philippines lags in manufacturing, which is a key growth and investment opportunity.
Gupte said to attract foreign direct investments in the sector, the Philippines should address bureaucratic hurdles, particularly in tax payments, high energy costs and gaps in infrastructure and logistics.
Gupte identified Asia South, including ASEAN and the Indian Subcontinent, as a global bright spot due to the region’s political stability, characterized by governments’ commitment to economic development, coupled with supply chain diversification and a large young population.
“This young population is driving a lot of digital ecosystem growth… It’s a huge, fast-growing space. It’s creating jobs, bringing people financial inclusion, and it’s rapidly improving something countries have struggled for the longest time–creating jobs,” said Gupte.
Paulo Campos III, founding managing general partner of Kaya Founders and a member of MBC’s Global Ideas Committee, moderated the discussion—leveraging his industry knowledge and deep understanding of market dynamics and emerging opportunities.
Gupte recognized the Philippines as a world leader in business process outsourcing (BPO). “Invest heavily in the service sector where you’ve done well. It will change with the advent of AI, and you’ve got to be ready for the change. Upskill your people (in the services area) to do more complex jobs that AI cannot do,” the Citi banker said.
Today’s shifting global order and geopolitical environment have resulted in significant uncertainty, presenting not only challenges and risks, but also strategic opportunities that the country and the region should capitalize on, he said.
Launched in 2023, MBC’s Global Leaders Program aims to provide the Philippine business community the opportunity to gain insights from world leaders, fostering a globally competitive perspective.
The series was made possible through the support of SGV & Co. and Oracle NetSuite.
