MANILA, Philippines — The manufacturing sector is expected to flourish this year following the huge investments in various industries that were approved in the past two years, said Trade and Industry undersecretary Cristino L. Panlilio.

"The prospect for manufacturing is very good because of the projects that we registered in 2010-2011," Panlilio said.

According to Panlilio, the investments registered by the Board of Investments and the Philippine Economic Zone Authority in 2010-2011 period alone already reached P800 billion.

In 2011, he said, the combined BoI and PEZA approved investments hit P400 billion and another P500 billion this year.

These investments do not include the investments generated by other investment promotion agencies of the government like Clark and Subic freeports.

In 2011, investment projects approved for the manufacturing sector amounted P104.758B, a significant increase of 122% from last year’s P47.178 billion. Investment projects include those in petroleum products, basic metals, motor vehicles, non-metallic mineral products, and food products.

“The manufacturing sector is a proven catalyst in employment generation. We will maximize this sector’s opportunities with a comprehensive roadmap and milestones to market their progress and development, along with other key sectors of the IPP,” DTI Undersecretary Adrian S. Cristobal, Jr. said earlier.

Those approved in 2010 must have started commercial operations in 2011 while some of the projects approved in 2011 may have operations starting this year.

"These are creating jobs, adding purchasing power that would lead to increased demand for basic goods and services. So what will follow next is the manufacture of goods," Panlilio noted.

Panlilio added that imports have been factored in already in the growth of the domestic economy.

"Exports and imports combined are economic contributors. Both create jobs," he added.

Earlier, Panlilio said that the country's exports of intermediate products or semi-finished products would be reduced to 75 percent by 2016 from the 2011 level of 87 percent as the share of finished products in the overall export basket improves.

Panlilio said this as the government sticks to its target of $120 billion in total exports by 2016, comprising of $95 billion in merchandize exports and $25 billion in service exports. Exports would represent 40 percent of gross domestic product in the next five years.

Total exports in 2011 are expected to hit $60 billion or 27 percent of GDP.

"We are staying put to our goal to double up, rev up to double up," Panlilio said.

According to Panlilio, the Philippines will continue to be an intermediate goods exporter in 2016 but such share would be reduced to 75 percent from the current 87 percent of total as the share of finished goods climbs up the overall export mix.

"We are going to beat the curve," he said.

Panlilio said the country's goal for higher exports of finished products would be supported by the government's competitive strategies that aim to promote more finished products in selected industries.

These industries are electronics and shipbuilding, motor vehicle industry, mineral products, garments, food, homestyle, coconut and new export winners