Published on Wednesday, 24 October 2012 20:15 [businessmirror.com.ph ]
Written by Max V. de Leon / Reporter
The government and private sector will
implement a road map that will solve the country’s housing backlog estimated at
4.65 million units by the end of 2016.
The work plan, prepared through the
initiative of the Subdivision and Housing Developers Association (SHDA), calls
for various support programs, including the grant of incentives and faster
release of housing permits and licenses.
“Before the road map process, the
industry was aware that a housing backlog exists but the extent was not very
clear. Now that we have prepared the road map, we were able to probe the issues
affecting the value chain of our sector and factors that could help it grow,”
Paul Tanchi, SHDA president, said.
SHDA worked with 10 other industries
in preparing the mass housing road map.
It was turned over to the Board of
Investments (BOI) of the Department of Trade and Industry (DTI) earlier this
month.
It identified issues such as delays in
development permits at local government unit level, rising costs of utilities,
brain drain, lack of funding for the poor, informal settlers and rising costs
of land.
“Among the priority strategies
identified by the group include ensuring the housing production momentum, which
means making the processing of housing permits and licenses faster,” Tanchi
said.
The road map called for the provision
of steady financing schemes to make housing units affordable, as well as a
comprehensive government housing assistance for targeted segments.
“We recognize the need for stronger
collaboration among industry players, key shelter agencies, and the national
government to address these gaps,” Tanchi said.
Trade Undersecretary and BOI Managing
Head Adrian S. Cristobal has asked the various industries to prepare their
respective road maps and committed to implement these through genuine
collaboration between the government and the private sector.
“We are reviving industry policy
through the industry development roadmaps project so we can all agree on
visions, strategies, and deliberate actions for industries to create meaningful
jobs in the country,” he said
He added that same shift to industry
policy is also happening not just in the Philippines but also in Europe, South
Asia and South America.
Based on the mass housing industry
road map, a P1 increase in investment in the housing industry generates P3.32
additional output to the economy.
Also, a P100-million investment in
construction is estimated to generate P47 million in additional household
income which corresponds to 228 direct jobs created.
The industry road map initiative,
launched by the DTI January this year, is the government’s strategic approach
to policy development to ensure that trade and investment policies are
consulted with stakeholders and international negotiating positions support the
growth of key Philippine industries.
It is also meant to link the
manufacturing sector with the rest of the economic sectors of the economy.
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