The debate in the Philippines is still stuck in the old way of thinking. Need to read up guys
A large gap in productivity exists between manufacturing and services in Malaysia, and this gap has only accelerated in recent years. However, this gap is not the inevitable consequence of a country’s economic evolution. There is no intrinsic characteristic of manufacturing that translates into inevitable productivity growth. Rather, in the current global environment, ‘industrial versus nonindustrial’ is no longer the appropriate distinction for designating high-productivity/low-productivity production. The key designation is ‘modern versus traditional’ activities. Therefore, rather than advocate for a particular sector as the source of stronger growth in Malaysia, there is a stronger need for broad structural transformation; that is, moving to higher productivity production in both goods and services.
via How to avoid middle-income traps? Evidence from Malaysia | vox.