The Department of Trade and Industry (DTI) is actively pursuing a science, technology and innovation-driven industrialization strategy to sustain the Philippines' growth trajectory amid economic challenges, DTI Secretary Alfredo E. Pascual reiterated Wednesday, Nov. 22.
“In the face of domestic and global economic headwinds, we, at the DTI, are working to uphold our country's growth trajectory through strategic programs and initiatives,” Pascual said during the Pilipinas Conference 2023 at The Peninsula Manila.
At the moment, the DTI chief said his department is negotiating a $400-million Asian Development Bank (ADB) loan to establish the DTI Innovation Gateway in Manila, as well as to promote integrated innovation and entrepreneurship through the collaboration among government, enterprises, and academia.
In terms of industry development, Pascual said a science, technology and innovation-driven industrialization strategy is needed based on the Inclusive Filipinnovation and Entrepreneurship Roadmap, which encompasses specific vital actions.
These actions include the creation of inclusive innovation centers; the push for digital transformation of micro, small, and medium enterprises (MSMEs) and their onboarding of e-commerce platforms; and the enterprise adoption of Industry 4.0 technologies.
It also includes the integration of industry development, trade, and investment policies; the upscaling and rescaling of the workforce; and the regional development innovation and entrepreneurship.
Pascual said that the Innovation Gateway will feature advanced technology centers that will transform Manila into an international innovation hub, including the Industry 4.0 Pilot Factory; the National Center for Artificial Intelligence Research; and a tech startup open innovation platform.
In addition, he said that the DTI is promoting various creative industries, such as audio visual media, digital media, interactive media, design, publishing, and performing arts, among others under the Philippine Creative Industries Development Act (PCIDA).
Based on a recent report, the creative industries contributed 15.5 percent to the gross domestic products in the third quarter of this year, bringing in P52.8 billion in value added.
Meanwhile, Pascual said that the DTI is leading a nine government agency task force to develop the Halal industry, targeting a significant share of the $7 trillion global halal market.
He added that the government will tap the domestic market and 57 countries that are members of the Organization of Islamic Cooperation (OIC) spanning Asia, the Middle East, Africa, Europe and the Americas for the growing demand for halal food, pharmaceuticals, tourism, Islamic finance, and modest fashion.
Further, Pascual stressed that the DTI is still exploring various industries with potential for export market development, including industrial manufacturing, transport, telecommunications, media, technology, health, biosciences, resilient economy, and infrastructure.
In terms of trade efforts, the DTI chief noted that the Philippine Export Development Plan for 2023-2028, aiming to boost the competitiveness of Philippine exports will guide industry-centric and frame-level interventions to support export growth.
Pascual also highlighted the country’s participation in bilateral, multilateral, and plurilateral trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP), ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), and the Philippines-South Korea Free Trade Agreement (PH-KR FTA), “opening new markets, ensure preferential tariff commitments and enhanced supply chain resilience”.
The DTI chief added that the European Commission's proposal for the rollover of the existing GSP plus for another four years has been supported by the European Parliament and Council.
On investment promotion, Pascual said that the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) are leading the investment promotion for attracting foreign and local investors to boost economic growth.
“The recently enacted economic liberalisation laws and policy reforms have made the business environment of the Philippines more attractive to investors, particularly foreign investors,” he said.
With its foreign investment promotion missions, DTI has been able to showcase to prospective investors abroad the Philippines as an ideal investment hub given the strategic location; young, highly trainable workforce; abundant natural resources; large domestic market; and market access to East Asia and the RCEP region.
The DTI chief added that the DTI is also collaborating with other government agencies to enhance ease of doing business, including the DTI-BOI's green lanes initiative, under EO 18.
“Collectively, we can craft a narrative of hope for our nation’s inclusive and resilient development. We want every Filipino to enjoy the rewards of our combined progress,” Pascual said.