Technological Institute of the Philippines

CONTRIBUTION TO

THE PHILIPPINE

ECONOMY
 Technological Institute of the Philippines

The Philippine Economy has been drastically suffering from the COVID-19

pandemic, the Philippines records a -8.3% Gross Domestic Product - GDP growth

rate in the fourth quarter and has -11.4% at the third quarter of the year 2020 based

on the Philippine Statistics Office. Many factors contribute to the least of the

Philippine economy, such as construction with -39.8 growth, real estate with -22.5,

and manufacturing with -9.7 growth rate. Some industries contribute to the

economy's growth, namely, financial and insurance with 6.9%, public information

and defense with 4.5%, and agriculture with 1.2%.

Figure 16.1.1 Gross Domestic Product Growth Rate in the Philippines

Source: Philippine Sweepstakes Office
 Technological Institute of the Philippines

According to the Asian Development Bank (ADB), The Philippines is

expected to have a strong GDP rebound in 2021, especially in the trade and

manufacturing sectors. The ADB expects the Philippine GDP to grow and contract to

6.5% and -7.3% respectively, GDP growth rate based on the government's

enhanced community quarantine last March 2020.

Figure 16.1.2 Philippines Gross Domestic Product Forecast

Source: Asian Development Bank

The Philippines' inflation rate is expected to reach 2.6% in 2021 and may

affect the global oil market. The ADB projects the inflation rate to remain in the range

of 2% - 4% to be prepared for the pandemic's unpredictable circumstances to the

world's economy.
 Technological Institute of the Philippines

Figure 16.1.3 2021 Inflation Forecast

Source: Asian Development Bank

Etzene Philippines Corporation aims to boost up the GDP and shrink the

inflation rate in the Philippines. As an Ethylbenzene producer, the company visions

to strengthen the economy and fiscal conditions. Through production output, the

company will help in increasing the GDP of the Philippines.

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The historical demand and supply of Ethylbenzene from years 2011 to 2020

is presented by the table below.

Table16.1.1 Historical Demand and Supply of Ethylbenzene from 2010-2020

YEAR DEMAND (MT) SUPPLY (MT)

2011 1,292.11 179.90
2012 1,452.08 212.81
2013 1,810.39 245.65
2014 6,534.51 1,034.83
2015 12,681.15 393.47
2016 6,905.32 677.49
2017 14,651.43 762.81
2018 10,707.17 612.50
2019 8,782.17 725.00
2020 8,202.62 802.50

Source: Securities and Exchange Commission and Philippine Statistics Authority

and United Nations Commodity Trade

Table 16.1.1 shows that there was a high demand of ethylbenzene in the

Philippines during the latter years. One of the main reasons is due to no existing

plant manufacturers of ethylbenzene in the country. All of the supply of ethylbenzene

comes from the importation outside the Philippines and because of these; high

portion of the demand is not satisfied.

The table below shoes the Projection of Demand and Supply of

Ethylbenzene from years 2021 to 2041.

 Technological Institute of the Philippines

Table 16.1.2 Basis for Market Share Projection

YEAR DEMAND (MT) SUPPLY (MT) UNSATISFIED (MT) % UNSATISIFIED

2021 13,226.00 914.39 12,311.60 93.09
2022 14,303.11 977.98 13,325.13 93.16
2023 15,380.22 1,041.56 14,338.66 93.23
2024 16,457.33 1,105.14 15,352.19 93.28
2025 17,534.44 1,168.72 16,365.72 93.33
2026 18,611.55 1,232.30 17,379.25 93.38
2027 19,688.66 1,295.88 18,392.77 93.42
2028 20,765.77 1,359.46 19,406.30 93.45
2029 21,842.88 1,423.05 20,419.83 93.49
2030 22,919.99 1,486.63 21,433.36 93.51
2031 23,997.10 1,550.21 22,446.89 93.54
2032 25,074.21 1,613.79 23,460.41 93.56
2033 26,151.31 1,677.37 24,473.94 93.59
2034 27,228.42 1,740.95 25,487.47 93.61
2035 28,305.53 1,804.53 26,501.00 93.62
2036 29,382.64 1,868.12 27,514.53 93.64
2037 30,459.75 1,931.70 28,528.06 93.66
2038 31,536.86 1,995.28 29,541.58 93.67
2039 32,613.97 2,058.86 30,555.11 93.69
2040 33,691.08 2,122.44 31,568.64 93.70
2041 34,768.19 2,186.02 32,582.17 93.71

Table 16.2 shows the projected demand and supply of Ethylbenzene from

2021 to 2041. Due to Ethylbenzene’s increasing demand that the available supply

cannot satisfy, their difference shows high projected unsatisfied demand in which the

Etzene Philippines Corporation would like to lessen.

EMPLOYMENT OPPORTUNITIES

The unemployment rate is interpreted as the number of unemployed

workers in the total labor force. According to Trading Economics, the Philippines'
 Technological Institute of the Philippines

unemployment rate rose to 8.7% in the fourth quarter of 2020. This unemployment

rate is equivalent to the 3.8 million Filipinos who do not have work or unemployed.

Source: Trading Economics

Figure 16.1.4 Unemployment Rate in the Philippines

It is the responsibility of Etzene Philippines Corporation to increase

employment in the Philippines and help our economic progress. It is undeniably one

of the biggest contributions of this company set up to Filipino people. Professional

and technical skills acquisition and personnel hiring are essential to lower the

unemployment rate and poverty rate.

Ethylbenzene has a diversified and established market that involves many

individuals like raw material suppliers, manufacturers, vendors, end-users,

authorized distributors, and many more. As the only Ethylbenzene producer in the

Philippines, Etzene Philippines Corporation ensures to increase the employment rate

and to improve the socio-economic conditions for the vast majority of Filipino.
 Technological Institute of the Philippines

CONCLUSION

The demand for Ethylbenzene is growing progressively, and importation

from neighboring countries cannot supply all the demand through the years.

Ethylbenzene has always been imported for different countries since there is no

existing plant in the Philippines. It is the vision of Etzene Philippines Corporation to

accommodate the demand of Ethylbenzene in the Philippines and increase

employment for construction and plant employees.

The Etzene Philippines Corporation will contribute to the rise of the

Philippine Economy for the industrial sector. Furthermore, the company would be

able to satisfy the demand for Ethylbenzene that is continuously growing. Out of the

unsatisfied demand, the company would be able to take 30% of the market share at

the first year of its maximum plant capacity production which is at 2028. By doing so,

the sectors needing the Ethylbenzene will be given aid by procuring a local

manufacturer such as The Etzene Philippines Corporation.

Through this, The Etzene Philippines Corporation is able to aid the

unemployment and underemployment rates that Philippines are suffering from. By

being a local Ethylbenzene manufacturer, our company will require a certain amount

of manpower and labor. The employment will be accompanied by various training

and seminars that will also aid to the Philippine Economy by making the employees

gain more knowledge and literacy.

 Technological Institute of the Philippines

Ethylbenzene is mainly used in the styrene production. Having an

Ethylbenzene manufacturing plant in the Philippines will not just help in the growing

productin of plastics but will also contribute in different industries such as paint, oil,

electronics, construction, and agriculture. Also, The Etzene Philippines Corporation

is planning for expansion in the future. Thus, promoting the demand that will be

satisfied and also creating more opportunities for unemployed and underemployed

Filipinos to get a job by working for the company. Since the expansion and the

growth to other industry will involve another load for manpower and costing,

providing more jobs.