The shrinking wage gap between emerging economies and developed countries could make the Philippines (along with other countries such as India) an attractive manufacturing location by 2030.
The Global Wage Projections to 2030 study of PwC reported that the narrowing wage gap between developed and emerging economies, which will significantly catch up by 2030, is a result of higher labour productivity and appreciation of currencies.
“The Philippines could be one of the most attractive South East Asian locations (alongside countries such as Malaysia, Thailand, Indonesia and Vietnam) taking over from China as a key low cost production hub,” the report read.
But PwC noted that improvements in institutional environment and transport and energy infrastructure must be made for this to be realised.
The report analysed data from the International Labor Organisation and IMF World Economic Outlook database.