By Secretary Fred Pascual
Reflecting on the accomplishments of the Department of Trade and Industry (DTI) over the past two years shows significant strides in tackling economic challenges and promoting national development. This article highlights our key achievements and progress in advancing our nation’s economic goals.
Such achievements are not mere statistics; they reflect the hard work and strategic initiatives planned and implemented by the hard-working teams of the DTI under our administration. For instance, our focus on boosting domestic industries and improving the investment climate has yielded significant results.
More investments, more jobs
From July 2022 to May 2024, the DTI approved 1,090 investment projects worth PHP 2.73 trillion through the BOI and PEZA. These projects have significantly bolstered the nation’s investment pipeline, which is essential for infrastructure and industrial development in the near to medium term. They are projected to generate 182,000 direct jobs for Filipinos, underscoring the country’s favorable business environment and high investor confidence.
Among the notable investments realized during the period were the expansion projects of several manufacturing companies producing food products, printers, electronic devices, and healthcare products for domestic and export markets. Several data centers, telecom towers, and IT-BPM offices were also established. Major state-of-the-art expansions of cement and steel factories were inaugurated recently. They will support the government’s Build Better More infrastructure and the growing construction industry. New industrial parks were inaugurated as well.
Also noteworthy is the collaboration between the DTI’s National Development Company and a local pharmaceutical firm to establish the country’s inaugural vaccine manufacturing facility. This facility will ensure ample vaccine availability and reduce dependence on external sources, highlighting our commitment to improving public health infrastructure.
Protecting consumer welfare
The DTI has been proactive in ensuring the protection of consumers. We created Task Force Kalasag (TFK) at the central office of our Fair Trade and Enforcement Bureau to ensure market players’ compliance with trade and industry laws. Since its inception, TFK has conducted extensive monitoring and enforcement activities nationwide. From April to July 2024 alone, TFK conducted ten targeted field deployments, covering four of the eight area clusters in the country. These operations resulted in the monitoring and inspection of 1,201 establishments and the seizure of PHP 73 million worth of violative products such as vapes and electric appliances.
TFK’s efforts have significantly increased consumer protection and awareness by removing uncertified and dangerous products from the market. This initiative protects consumers and prevents economic losses from health and safety-related hazards. The rigorous enforcement of technical regulations and fair-trade laws underscores our commitment to maintaining market integrity and consumer safety.
Additionally, we have implemented the Central Medical Store (CMS) to address the availability of medicines and the variability of prices across government entities. The CMS offers medicines for primary healthcare, focusing on the requirements of the Department of Health’s Botika Ng Bayan and the Philippine Health Insurance Corporation’s Konsulta. As of June 2024, several local government units and DOH-retained hospitals have availed of CMS services, enjoying savings of up to 42% of the Approved Budget for the Contract. This initiative ensures that essential medicines are affordable and accessible to all Filipinos.
This week, the DTI issued an order temporarily suspending the online sale of vape products until companies operating e-marketplaces submit to DTI satisfactory proof of adequate and effective measures to ensure their full compliance with the proof-of-age verification and all other mandatory legal requirements of RA 11900 and other pertinent laws. This order aims to prevent access to vape products by minors and curb the proliferation of illegal, unregulated, and substandard vape products online.
Legislative milestones
Two significant laws, the Tatak Pinoy Act and the Internet Transactions Act, were enacted with the active support of the DTI through drafting and advocacy. The Tatak Pinoy Act is a pivotal seeks to legislation aimed at fully industrializing our country through proudly Philippine-made products and services that are competitive in the global market.
On the other hand, the Internet Transactions Act and its associated regulations provide a comprehensive framework for regulating e-commerce in the Philippines. By establishing clear guidelines and empowering the DTI to enforce compliance, the Act aims to create a safe and trustworthy environment for online transactions while fostering innovation and economic growth in the digital marketplace.
Easing MSMEs’ access to technology and finance
Micro, small, and medium enterprises (MSMEs) are the backbone of our economy, driving job creation, innovation, and economic diversification. President Marcos Jr. approved the six-year MSME Development Plan, embodying the government’s bold vision for promoting innovative and resilient MSMEs. This plan aims to spearhead the digital transformation of MSMEs by integrating cutting-edge digital tools and technologies, including artificial intelligence (AI). By simplifying access to advanced AI systems and offering comprehensive training, the Plan empowers businesses to enhance their operations and competitiveness.
The Plan includes improved access to finance by increasing the authorized capital of the Small Business Corporation (SBCorp) to PHP 50 billion, with an initial infusion of PHP 10 billion in 2025. This capital infusion will extend vital financial assistance to more MSMEs, especially in underserved areas of the country, fueling their growth and sustainability. As of May 2024, SBCorp’s P3 program reached 420,000 MSME borrowers, up from 297,000 in June 2022. The total loan amount released reached nearly PHP 37 billion, compared to PHP 27 billion in June 2022. These figures demonstrate our commitment to supporting MSMEs and driving economic growth.
Enhancing innovation and global competitiveness
The DTI has launched the Center for Artificial Intelligence Research (CAIR) to elevate the country’s brand of innovation. CAIR will be a hub for collaborative AI research and development, producing AI products and services and providing AI training programs. This initiative aims to harness AI’s potential and drive the digital transformation of industries for improved production and global competitiveness.
In addition, we have launched the National Startup Accelerator Platform in collaboration with an international accelerator, Plug and Play. This initiative will promote the advancement of startups in the country, improving access to efficient technologies and fostering a vibrant entrepreneurial ecosystem. Partnerships with international corporations will also be facilitated. One important aspiration is nurturing unicorns (startups with a valuation of USD 1 billion or more).
Bureaucratic efficiency
Streamlining processes and enhancing efficiency have been a cornerstone of my administration. The DTI’s online business name registration system has seen a 5.6% increase in registrants from January to May 2024 compared to last year. Within five months this year, there were already 605,581 registrants. The BN Registration System Next Gen maintained its efficiency, allowing end-to-end online registration within eight minutes, from submitting applications to downloading a registration certificate.
Concerning this, the DTI launched the Philippine Online Dispute Resolution System (PODRS) as the Consumer Complaints and Resolution System (CAReS). This system provides easy access for reporting and tracking complaints from filing to resolution. A consumer can create an account in Consumer CAReS within ten minutes while lodging a complaint (with proof of transaction), which can be done in 10-20 minutes, depending on the complexity of the complaint. This online system demonstrates our dedication to facilitating ease of doing business and protecting consumer rights.
Social welfare initiatives
In collaboration with the Departments of Agriculture and Energy, the DTI signed Joint Administrative Order No. 24-02 on 21 March 2024. This order increases the special discount for senior citizens and persons with disabilities (PWDs) on purchases of basic necessities and prime commodities. The new purchase cap is PHP 2,500, compared to the previous limit of PHP 1,300 per week set almost 14 years ago. This initiative ensures that our most vulnerable citizens can afford essential goods, reflecting our commitment to social welfare.
Reflecting on progress
The achievements of the DTI demonstrate our commitment to driving economic growth, supporting innovation, and ensuring social welfare. From legislative milestones and investment approvals to innovative initiatives and social welfare programs, our efforts have made a tangible impact on the lives of Filipinos.
We have fostered a favorable investment climate, created thousands of jobs, and introduced measures to protect consumers and support MSMEs. Our initiatives in AI research, digital transformation, and clean energy are paving the way for a more resilient and competitive Philippines.
While challenges remain, the journey ahead is promising. As we continue to build on these accomplishments, we invite everyone to witness the transformation we bring to the Philippines. Together, we can achieve a prosperous and resilient Bagong Pilipinas.
