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Local Convergence and Industry Roadmaps: Potentials and Challenges in the Region

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Local Convergence and Industry Roadmaps: Potentials and Challenges in the Region Local Convergence and Industry Roadmaps: Potentials and Challenges in the Region Dir. Luis G. Banua National Economic and Development Authority Region IV-A 1 Outline of Presentation • Calabarzon Regional Economy • Calabazon Regional Development Plan 2011-2016 Regional Economy Population and Land Area Population as of REGION 2000-2010 Calabarzon - largest May 2010 population among regions Philippines 92,335,113 1.90 NCR 11,855,975 1.78 in 2010, surpassing NCR. CAR 1,616,867 1.70 I 4,748,372 1.23 It is second densely II 3,229,163 1.39 populated among regions III 10,137,737 2.14 - 753 people sqm. IV-A 12,609,803 3.07 IV-B 2,744,671 1.79 V 5,420,411 1.46 Land area - 1,622,861 ha. VI 7,102,438 1.35 VII 6,800,180 1.77 VIII 4,101,322 1.28 IX 3,407,353 1.87 X 4,297,323 2.06 XI 4,468,563 1.97 XII 4,109,571 2.46 CARAGA 2,429,224 1.51 ARMM 3,256,140 1.49 The Calabarzon Region’s share to the GDP is 17.2%, which is second highest next to NCR 1.2 Trillion GRDP Growth Rates by Industry GRDP Growth Rates, 2010-2014 Calabarzon Sectoral Shares to GRDP, 2014 (percent) Source: PSA Strong industry/manufacturing/ commercial sector Total No. of Ecozones in Calabarzon, May 31, 2015 Cavite Laguna Batangas Rizal Quezon Total Manufacturing 9 9 14 - - 32 Agro- 1 - - - 1 2 industrial IT Center 1 1 3 2 - 7 IT Park - 4 - - - 4 Medical - - 1 - - 1 Tourism Tourism - - 1 1 - 2 Total 11 14 19 3 1 48 Source: PEZA Export Sales of all PEZA Enterprises vs. Calabarzon (Jan-Jun 2014) Source: PEZA Impressive growth of service sector Emergence of services required by ecozone locators such as machine calibration, water testing, financial, telecommunications, transportations, logistics & storages services Major contributors to the agriculture sector Commodity Rank in the National Production Chicken eggs 1st Chicken 2nd Hogs 2nd Tilapia 2nd Roundscad 3rd Source: http://countrystat.bas.gov.ph/ Calabarzon Employment, 2010 to 2014 Indicator 2010 2011 2012 2013 2014 Labor Force Participation 63.6 64.7 64.40 64.5 65.5 Rate (%) Employment Rate (%) 90.5 90.3 91.1 90.8 91.8 Unemployment Rate (%) 9.5 9.7 8.9 9.2 8.3 Underemployment Rate (%) 17.4 17.9 17.9 17.9 18.7 Source: DOLE Inflation Rate, 2011-2014 6.0 5.0 4.0 Philippines 3.0 NCR 2.0 Calabrazon 1.0 - 2011 2012 2013 2014 Source: PSA Poverty Incidence and Subsistence Incidence 2006, 2009, 2012 Source: PSA INDICATOR 2006 2009 2012 Poverty incidence among families 10.1 10.8 8.3 Poverty incidence among population 13.1 14.3 10.9 Subsistence incidence among families 2.9 3.2 2.3 Subsistence incidence among population 4.0 4.5 3.2 Annual Per Capita Poverty Threshold, Poverty Incidence: 1991, 2006, 2009 and 2012 Annual Per Capita Poverty Poverty Incidence among Region/ Threshold Population (%) Province (in Pesos) 1991 2006 2009 2012 1991 2006 2009 2012 PHILIPPINES 5,949 13,357 16,871 18,935 34.4 26.6 26.3 25.2 NCR 7,373 15,699 19,227 20,344 7.1 4.7 3.6 3.9 Region IV-A 6,409 13,241 17,033 19,137 22.7 10.3 11.9 10.9 Batangas 13,735 17,360 19,437 14.4 17.1 19.0 Caviteb/ 13,343 16,677 19,948 1.8 3.2 3.4 Laguna 13,637 17,412 19,857 5.5 8.4 6.4 Quezon 12,784 16,181 18,081 33.5 29.8 27.5 Rizal 14,525 18,397 20,306 3.3 8.6 6.1 Source: PSA Probability of Attainment High probability: >0.9 Poverty incidence among population Subsistence incidence among population Elementary cohort survival rate Elementary completion rate Under five mortality rate Percentage og HH with safe drinking sources Medium Probability: 0.5 to 0.9 Underweight children below 5 years Infant mortality rate TB cure rate Low Probability < 0.4 Elementary net enrollment rate Gender parity index in elementary education Gender parity index in secondary education Percentage fully immunized children Maternal mortality ratio Contraceptive prevalence ratio TB detection Calabarzon Regional Development Plan (RDP) 2011-2016 Vision Be the leading global economic hub of the country Be a model, livable industrial region, highly urbanized with well- planned own clusters ideal for sustainable living Have a vibrant countryside offering an excellent alternative place to live, work and seek creation Have a modern intermodal transportation system and digital infrastructure integrating the region within, to the country, and to the global community Be complemented by high quality social service amenities accessible region-wide Have a citizenry whose high creativity and competitive spirit, genuine concern for the environment and fellowmen, and love of country is inspired by their affinity to the region’s heroes and unwavering faith in God Calabarzon Development Agenda 2010 to 2020 Harmonization of regional development objectives and environmental protection Enhancing Calabarzon’s competitiveness as a global business hub Adoption of knowledge-based industries and information exchange Reduction of socio-economic disparity Tying up human resource development, industry, research and development priorities & concerns Sustaining capacities in local governance 18 Spatial Development Strategy CCW Planning Approach CENTERS CORRIDORS WEDGES CENTERS are the CORRIDORS are WEDGES are tracts of nucleus of primarily land between economic activities transportation corridors are the with with high arteries linking less dense population population centers to centers and limited housing serving as transit and supporting densities stations, interchange, facilities and services. connected by built established Includes green infrastructures and neighborhood or corridor, protection multimodal general corridor areas and production areas transportation system Spatial Development Strategy Center/Cluster-Corridor-Wedge Planning Approach • Directs & stimulates development & growth from W-E & strengthens N-S development & access corridors • Reflects polycentric urban character of the region • Provides opportunities to facilitate development in the different areas of the region by improving the RPFP 2004-2030 Calabarzon Map CCW Approach Centers/ clusters Corridors Wedges 21 Calabarzon RDP Major Strategic Policy Narrow down Bridge labor Enhance regional socio-economic supply-demand competitveness disparity in the gaps region Continuously enhance regional competitiveness as a global business hub Enhance skills and human resource capabilities in the region thru tying up human resource development to industry, R&D priorities and concerns Build up adoption of knowledge-based industries and information exchange to spur innovation and research and development efforts Ensure equitable access to basic social services while pursuing Millennium Development Goals Sustain local Preserve ecological Multi-stakeholder governance partnership integrity 22 capacities escalate Midterm Development Goals and Outcomes 2013 to 2016 Maintain high, sustained and • GRDP growth targets within 5.5 to 7.6 inclusive percent from 2013 to 2016 economic growth Improve provision • Maintain unemployment rate within 8.6 of equal access to to 9.4 percent development • Underemployment kept below 17.5 opportunities percent until the end of the plan Advance delivery • Intensify efforts to achieve MDG targets focused among lagging provinces and of social safety indicators with low probability of nets achievement Challenges Industry Sector • Volatility in foreign exchange rates and financial markets continue to pose challenges to the region’s economy, particularly the export-oriented manufacturing industry • Low capability of local producers and suppliers for positioning in the global value chain Challenges Services Sector • Dependence of the IT/BPM industry to the performance of foreign markets and its susceptibility to market shocks and uncertainties • Low level of preparedness of industries to the impact of AEC 2015 and inter-regional trade Challenges Agriculture Sector • Uncompetitive agri-based products due to weak agri- industry linkages and lack of value-adding • Vulnerability to climatic changes, disaster and infestations Prospects and Opportunities Services Sector Sources of Growth: Private services, Trade, Finance, Real Estate ,Government Services, Communications, Increase demand for various ICT services, finance and trade activities Largest number of OFs, comprising 18.4% of the total OFWs. Prospects and Opportunities Industry Sector Sources of Growth: Manufacturing, IT/BPM, Ecozones locator firms; High population demand, OFs and families Sustained demand in international market for electronics and semiconductor products Sustained aggressive outbound investment promotion thru trade fairs and product-promotion activities Prospects and Opportunities Agriculture and Fishery Sector Sources of Growth: High value vegetable and commercial crops, Poultry and livestock, Aquaculture industries, Agri-SMEs Sustained high value commercial crop production especially among the upland areas Sustained growth in poultry, egg and hog food consumption in the region's urban centers and NCR food market Calabarzon Major Strategies Industry and Services Strategies Enhance capability of local producers & suppliers in the global value chain positioning for AEC 2015 Enhance economic competitiveness & improve access for financing opportunities for MSME Improve responsiveness & relevance of current education curricula to labor market demands & industry requirements Industry and Services Strategies (cont’n) Efficiently mobilize financial resources Improve financial inclusion mechanism Strengthen/improve enabling environment for the financial system Mobilization of OFs remittances Industry and Services Strategies (cont’n) Scale up maintenance of industrial labor relations
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