The Department of Trade and Industry (DTI) is pushing for import substitution of domestic consumer goods to produce more competitive products, particularly packaged foods, as part of its export recovery program.

DTI Secretary Alfredo E. Pascual said this Wednesday, Nov. 22, during a panel discussion on "Economic Outlook and Strategies for 2024" at the Pilipinas Conference 2023 at The Peninsula Manila, amid strong doubt that the $126 billion exports this year can still be attained. 

Pascual stressed the need to implement an import substitution policy but not like the 1950s policy which restricted the imports of manufactured goods.

“Just producing products that will compete with imported consumer goods will be almost like exporting,” he expressed, adding that there are a lot of products that can be industrialized.

In support, Pascual emphasized that the DTI is working closely with micro, small, and medium enterprises (MSMEs) through its Regional Inclusive Innovation Centers (RIICs) and provincial Negosyo Centers.

The country has been experiencing an import dependence with a trade deficit that stood at $58.43 billion last year.

In the first semester of this year, the exports of goods, merchandise, and services declined by 6.6 percent, which makes it unlikely for the Philippines to reach its $126 billion export target.

Pascual said the DTI plans to allocate, not mentioning the amount, for Shared Service Facilities (SSF) by next year to support MSMEs in improving the quality of their manufactured goods and boost the country’s export potential.

“For next year, we will have an allocation for shared service facilities, which will enable us to help our MSMEs produce competitive consumer products, particularly packaged foods,” he said.

The SSF Project supports MSMEs in various industries, aiming to improve product quality and competitiveness. It addresses processing and manufacturing gaps, addressing facilities lacking, low capacity, or unaffordable services.