THE PHILIPPINES needs to improve the availability of raw materials to give large manufacturers an option to support domestic suppliers, a San Miguel Corp. (SMC) official said.
“Part of what we do is import raw materials that are not available here,” said Raoul Eduardo C. Romulo, SMC chief finance officer, at a panel discussion at the Metro Manila Business Conference on Thursday.
“But if our contractors and our suppliers can produce their goods, we will contract with them, agree to the terms, and buy completely from them,” Mr. Romulo said.
He said San Miguel is looking to expand domestic purchases of food, yeast, and steel if possible.
“The country is food deficient, and San Miguel has various product lines in food … and we will appreciate it if you can (provide the) quantities we need,” he said.
“We also have beer products, and we have very little yeast here, so the bulk of the (raw materials for) San Miguel beer has to come from another country, although we try to use as much as the locals can supply,” he added.
San Miguel is also involved in tollways, railways, seaports, and airports.
“Unfortunately, we don’t have a steel industry in the country, so we have to depend on foreign components,” Mr. Romulo said.
President Ferdinand R. Marcos, Jr., has directed the Department of Trade and Industry to update the Iron and Steel Roadmap in order to improve the balance of trade in steel.
Within the Association of Southeast Asian Nations, the Philippines remains the only country without an integrated steel mill.
At a budget hearing on Aug. 14, Trade Undersecretary and Board of Investments Managing Head Ceferino S. Rodolfo identified processed food and beverages and iron and steel as the primary contributors to the trade deficit.
He said the trading relationships that were the source of the largest deficits were China, Indonesia, South Korea, Thailand, Malaysia, Singapore, Australia, Vietnam, Saudi Arabia, and Taiwan. — Justine Irish D. Tabile
