BETTER DAYS
Senator Sonny Angara
Over the past three years, I have been advocating for a transformation among our industries — from one that produces common, low-value goods to one that churns out complex, high-value products. We dubbed this Tatak Pinoy (Proudly Filipino), which embodies our vision and ambition to see Philippine industries, entrepreneurs, professionals, workers, artisans and farmers becoming globally competitive so that the country can export more complex, high-value products and services.
Take for instance mangoes. The Philippines is known to produce some of the world’s best mangoes and these are exported to various destinations. But more than just the fruits themselves, the country is also exporting processed mangoes in the form of dried mangoes and even candy. Unlike the fresh fruits, the processed mangoes last longer and can easily be transported to even more destinations that do not impose restrictions on the entry of certain agricultural products.
Another example would be semiconductors. This segment of the electronics sector remains as the top export for the Philippines. These include integrated circuits, diodes and transistors that are being used by manufacturers around the world for the production of complex, high value products that eventually end up being imported by the Philippines for domestic consumption. What can be done so that we export, instead of import, these high-value products?
In 2020, we exported $106 billion worth of products. Imports, on the other hand, reached $130 billion, resulting in an overall trade deficit in goods and services. If we look at our ASEAN neighbors, most of them are already posting trade surpluses. Vietnam for one has moved to an export-led economy while Indonesia has focused its efforts towards industrialization. During a hearing conducted by the Committee on Trade, Commerce and Entrepreneurship last week, the Department of Trade and Industry noted that while the Philippine economy is growing, there is still a huge reliance on imports of commodities such as steel, cement and petroleum that all contribute to the deficit in our balance of trade.
I raised this question to the DTI: Is this a sustainable direction for us as a country or do we want to reverse this? We need to find out if we are on the right track in terms of producing higher-paying jobs and higher-value industries. If the data shows we are not, then we have to reverse track at some point.
This is what we are trying to achieve with our Tatak Pinoy advocacy. Through our office, we are rallying the public and private sector to achieve these goals: Providing support to priority industries; helping create more high quality and globally competitive products and services; promoting Philippine products and services under a brand of quality to encourage global demand; highlighting the ingenuity, creativity, and innovativeness of Philippine workers, craftsmen, laborers and professionals; encouraging job-generating investments — both local and foreign; creating a new generation of highly-skilled Filipinos who are well-prepared for today’s fast changing world; reversing the phenomenon of brain drain; spurring innovation and encouraging active collaboration between the government, academe, and the private sector; pursuing legislation whenever appropriate; and instilling pride and optimism in every Filipino about the Philippines. This is all about making “Proudly Made in the Philippines” a compelling brand and value proposition that is well-known across the world.
It was very encouraging to hear DTI Secretary Fred Pascual echoing our views and recognizing the need to move towards industrialization in order to sustain the growth of our economy and make it more inclusive. Sec. Pascual hit the nail on the head when he said that providing stable, better quality and higher paying jobs for our people is the only way to reduce, if not eliminate the constant exodus of talent to other countries and cut down our reliance on OFW remittances as a way to prop up our economy, which he said is unsustainable.
The bottom line is that we need to strengthen our industries, move them up the value chain so that we can produce more jobs and increase the incomes of our people. We need a whole of government approach and have a laser-like focus on this effort in order to achieve results. The DTI should take the lead and meet with our manufacturers to determine why they are not occupying higher producing product spaces. If they say they lack the skilled manpower or technology or partners, then there should be a corresponding push from the Department on this front.
We should look in this direction of having more higher paying jobs and higher value products. Our GDP per capita has been increasing but only incrementally. If we’re looking for more dramatic increases, we need to make changes in this direction.
Email: [email protected]| Facebook, Twitter & Instagram: @sonnyangara
Senator Sonny Angara has been in public service for 18 years — nine years as Representative of the lone District of Aurora, and nine as Senator. He has authored and sponsored more than 250 laws. He is currently serving his second term in the Senate.