TACLOBAN CITY – The National Economic Development Authority (NEDA) in Eastern Visayas foresees a possible slowdown of economic growth this year amid the indefinite stoppage in operation of the country’s only copper smelter and refinery which is based in Leyte.
The Philippine Associated Smelting and Refining Corporation (PASAR), the region’s biggest contributor to the economy from the manufacturing subsector, announced last February 24 that it is putting the plant in Isabel town into care and maintenance.
PASAR said the decision came as part of an “ongoing evaluation of the operation and increasingly challenging market conditions.”
NEDA regional director Meylene Rosales said that while Easternn Visayas has consistently recorded an annual economic growth exceeding six percent in the last four years, sustaining it will be a key challenge in 2025 due to the status of PASAR.
The Philippine Statistics Authority in the region announced on Tuesday a 6.2 percent growth of the gross regional domestic product in 2024.
Rosales said the manufacturing, which is the largest sub-industry in the region contributing 15.5 percent of total output, made a modest growth of 0.9 percent, down from 1.3 percent in 2023.
“This underperformance was driven by volatility in the copper processing industry, caused by weaker exports and maintenance disruptions at the PASAR during the second and third quarters of 2024,” she said.
Challenging 2025
Copper and related articles which are manufactured in PASAR makes up the biggest import of Eastern Visayas.
PSA regional data shows that from January to November 2024, Eastern Visayas recorded a total import amounting to $185.02 million of which $125.74 million or 68 percent comes from copper. China remains its biggest market accounting to $82.37 million of its export receipts.
“The key challenge for 2025 will be sustaining this momentum amid ongoing disinflation and a potential slowdown in manufacturing, following the PASAR Leyte plant’s recent transition to “care and maintenance” status for an indefinite period – a development likely to create ripple effects across related industries,” Rosales said.
She said the indefinite shutdown of PASAR’s operation has already prompted the Regional Development Council to push for the immediate conduct of dialogues among key stakeholders to come out with solutions.
Rosales said the discussions at the RDC also seek to identify opportunities within sectors poised for growth such as agriculture and fishery, non-manufacturing industries, and the services sector.
“On a broader scale, the current PASAR situation highlights the urgent need to diversify and revitalize the manufacturing subsector, while supporting MSMEs in boosting their productivity and competitiveness,” she added.
She said the RDC is Eastern Visayas is also asking for the swift passage of the Leyte Ecological Industrial Zone Act, which aims to attract sustainable, future-ready industries and strengthen resilient value chains across the region.
The LEIZ bill passed the third and final reading at the House of Representatives but failed to make any headway at the Senate.
#WeTakeAStand #OpinYon #OpinYonNews