Thursday, May 03, 2007 Strong peso doesn't do manufacturers good By Grace L. Plata
THE strengthening of the peso against the dollar may have a lot of positive effects to the economy but not so far as the country's workers in the manufacturing sector are concerned.
According to economist and Institute of Popular Democracy researcher Jude Esguerra in a press conference Monday, the strength of the peso makes it possible for businessmen-manufacturers to import intermediate goods at a lower price thus lessening the need for local employment.
"Yung imported goods eh kumpleto na, mura pa at i-assemble na lang kaya dun na kumukuha ang mga negosyante. That lessens the need for workers na gagawa nung produkto using the local raw materials," Esguerra explained, adding that this is a cause for worry for those who are employed or looking for employment in manufacturing.
Aside from this, Esguerra said the strengthening of the peso makes it possible for the government and companies to get loans from foreign investors.
However, added loans will pose as a problem should the peso value depreciate again.
"Mas malaki na ang babayaran at lalaki pa interes pag nagkataon," Esguerra said.
