THE RESTORATION of funding for the Comprehensive Automotive Resurgence Strategy (CARS) program can be the starting point for restoring investor confidence, industry groups said.
Philippine Chamber of Commerce and Industry (PCCI) President Ferdinand A. Ferrer called the restoration of the vetoed funding “a small step” among the “several tasks that need to be done to restore investor confidence in the country.”
He said the return of the withdrawn funding for the CARS program “is a clear indication that the government will support critical industries and prior commitments.”
The Philippine Parts Makers Association (PPMA) said funding for the programs, which serve as an incentive for automakers assembling cars in the Philippines, “would reaffirm the government’s commitment to revitalizing domestic automotive manufacturing.”
“PPMA notes that the P4.32-billion allocation for CARS is vital in supporting the continued operations and production plans of the program’s participants, including vehicle manufacturers and the supplier base that supports them,” it said.
“This resolution strengthens policy stability, protects jobs, and helps preserve the manufacturing ecosystem that the Philippines has worked hard to build over the years,” it added.
The Federation of Philippine Industries (FPI) said reinstating the funding “is a vital step toward rebuilding investor confidence and honoring commitments to manufacturers.”
“Policy consistency is the true cornerstone of competitiveness, and we call on government agencies to turn bold pronouncements into timely, transparent action,” FPI Chair Elizabeth H. Lee said via Viber.
“Only by sustaining industrial programs with credibility can the Philippines position itself as a trusted destination for long-term manufacturing investments,” she added.
President Ferdinand R. Marcos, Jr.’s veto of unprogrammed funds included P4.32 billion in fiscal support for the CARS program and P250 million for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program.
On Friday, Finance Secretary Frederick D. Go said the government has arrived at a funding solution for the CARS program.
“We are truly thankful to the secretaries of the different departments who have worked diligently through a whole-of-government approach to find a funding solution,” Board of Investments Managing Head and Trade Undersecretary Ceferino S. Rodolfo said in a Viber message.
“This conveys a strong positive signal to the investor community in general and to auto and auto parts companies in particular. At the end of the day, the thousands of workers in the automotive supply chain will be the ultimate beneficiaries,” he added.
However, PPMA urged the government to implement the RACE program as soon as possible, as its fiscal support remains unfunded.
“We underscore that only P125 million is needed to initiate and operationalize RACE, an amount that can unlock significant benefits for the broader industry, especially for local automotive parts manufacturers who are key contributors to inclusive industrial growth,” it said.
The group said that the program will help strengthen the domestic supply chain by “supporting investments in tooling, technology upgrades, quality and safety certifications, productivity improvements, and local-content expansion.”
“These are critical interventions that enable more Filipino parts makers to participate meaningfully in vehicle production and compete within the Association of Southeast Asian Nations (ASEAN) region,” it added.
It also cited the role of the program in laying the foundation for the upcoming Electric Vehicle Incentive Strategy (EVIS), which aims to build the electric vehicle (EV) supply chain.
EVs require a wide range of components that Philippine manufacturers can supply, including wiring harnesses, stamped and structural parts, body components, electronics housings, thermal systems, and eventually power electronics and battery-related components,” it said.
“Strengthening the parts sector today through programs like RACE will ensure that the Philippines is ready to capture these EV opportunities as EVIS accelerates industry transformation,” it added. — Justine Irish D. Tabile
