SCMAP president Nestor Felicio believes that while the Philippine economy will continue to grow in 2017, it faces additional risks from the changing political climate across the world.
He made these remarks in a special report on PortCalls‘ 22 February issue, which featured the outlook of different stakeholders in logistics and supply chain for the new year.
“The emergence of protectionist policies may slow trade between countries, although I see an opportunity in other countries that might open up new trade avenues,” he told the publication.
Global economies have been watching for any potential impacts of the election of Donald Trump as president of the United States, as well as the vote by the United Kingdom to leave the European Union. Other major economies are also seeing the potential entry of protectionist personalities into their highest political positions.
He also sees risks in trends much closer to home, such as the continuing dispute over the South China Sea. “[It could] possibly affect our shipping connections to the region,” Felicio said.
“The traffic problem in Metro Manila continues, as well as congestion in our major airports and seaports,” he added. “We have failed to anticipate growth and are now playing catch up.”
The devaluation of the peso and the increase in oil costs could also impact the industry, he said.
However, Felicio believes that the supply chain industry can cope with the additional risks through better planning, specifically in transport routes and in the establishment of distribution hubs in critical regions across the country. But he says industry alone can only do so much.
“I believe the government should accelerate construction of new infrastructure, and ensure it does not just serve our needs today, but our needs for the years ahead,” he said. “I am encouraged by the current administration’s plan to invest a lot of money in infrastructure, but it also has to look into developing effective logistics hubs, and also implement sensible and adaptable transport policies.”
The Duterte administration has promised to spend PHP 7 trillion over its six-year term on constructing and rehabilitating infrastructure projects, from road and rail projects to airports and seaports.
Felicio, who assumed the presidency of SCMAP at the beginning of 2017, is also corporate vice president for integrated planning and logistics management of pharmaceutical giant United Laboratories.