The country’s metalworkers are sounding the alarm over what they see as a quiet but consequential retreat from industrial policy.
The Philippine Metalworkers’ Alliance (PMA) has urged President Ferdinand Marcos Jr., Congress, and key economic agencies to immediately restore funding for the automotive sector, warning that recent budget decisions threaten jobs, supply chains, and long-term manufacturing growth.
The group criticized in a statement the defunding of the Comprehensive Automotive Resurgence Strategy (CARS) and the effective stalling of the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) Program. Both programs were excluded after the President vetoed items under the Unprogrammed Appropriations, despite their inclusion in the Department of Trade and Industry’s proposed 2026 budget.
“This is not just a budget issue. It is a policy issue,” said PMA National President Narciso Lozano Jr. He argued that placing CARS and RACE under discretionary, unprogrammed funds signals that industrial development is optional rather than a core government commitment. For investors and manufacturers, he said, that weakens policy credibility.
CARS and RACE are designed to rebuild domestic vehicle manufacturing, deepen local supply chains, and support higher-value jobs—key pillars of the Philippine Development Plan 2023–2028.
According to Board of Investments data cited by PMA, the automotive sector directly employs about 8,000 workers, with roughly 340,000 more dependent on related industries such as auto parts, metalworking, electronics, and logistics.
PMA warned that pulling P4.32 billion in CARS funding and scrapping RACE financing could ripple across this ecosystem. “These are skilled, productive, and relatively well-paid manufacturing jobs,” Lozano said.
The group also flagged the policy contradiction of defunding domestic auto programs while allowing tariff-free imports of electric vehicles and parts.
Without sustained support, PMA warned, the Philippines risks premature de-industrialization—ceding manufacturing capability just as regional competitors double down on it.
