-
New Philippine Export Development Plan aims to transform the country from an exporter of commodities and intermediate goods to an exporter of high-value products and services
-
The Department of Trade and Industry industrial, manufacturing, and transport; technology, media, and telecommunication; health and life sciences; and resource-based enterprises as priority clusters for development support
-
DTI’s strategic priority is to upgrade, upskill, and upsize MSMEs
The Department of Trade and Industry is eyeing the transformation of the Philippines into a high-value exporter of products and services from an exporter of commodities and intermediate goods under the new Philippine Export Development Plan (PEDP), Trade Secretary Alfredo Pascual said.
For the 2023-2028 PEDP now being drafted, “new directions are headed toward complete data analytics, stronger and wider stakeholder engagement, product and market matching, and a proactive legislative agenda,” Pascual said.
The PEDP defines the country’s medium-term annualized export thrusts, strategies, programs and projects that shall be implemented jointly by the government, exporters and other concerned sectors.
In this regard, the Department of Trade and Industry (DTI) will support industry development through priority clusters, namely, industrial, manufacturing, and transport (IMT); technology, media, and telecommunication (TMT); health and life sciences (HLS); and resource-based enterprises, Pascual said in a speech during the recent general membership meeting of the Philippine Exporters Confederation Inc.
Pascual said the DTI will build on the initial gains in 2021 until the first half of this year, with the following commodity groups presenting strong growth: electronics, other manufacturers, mineral products, cathodes, refined copper, chemicals, and coconut oil, among others.
He said the first cluster, IMT, will provide the country with upgrading opportunities in aerospace, automotive, and semiconductors while the second cluster, TMT, will provide opportunities to digitalize services.
As pharmaceuticals, medical devices, and healthcare services become more integrated, they will facilitate the emergence of the third cluster – HLS – in the Philippines.
Over the next decade, manufacturing medicines faster and cheaper will continue to be the goal of multinational companies, Pascual said. The sector will also witness smaller, more agile pharmaceutical companies taking a more critical role in bringing medicines, including generics, to the market, he said.
DTI will also promote resource-based industries, particularly ore processing.
Pascual said the Philippines has two billion metric tons of nickel, 1.1 billion MT of copper, and 260,000 MT of cobalt reserves, which can be used for downstream industries such as electronic vehicle batteries, hyperscaler data centers, and renewable energy.
Further, DTI will collaborate with the Department of Agriculture to help address food security challenges by improving food value chains through upgraded transport and logistics facilities, including cold storage and cold chain facilities.
In trade, Pascual said DTI continues to harness opportunities offered by the country’s free trade agreements (FTA).
“We further aim to expand our FTAs to help diversify the country’s exports, first in terms of products and services and second in terms of country destinations,” he said.
DTI continues to push for the Senate’s ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement, seen to help the country take advantage of trade and investment opportunities through partnerships between the Association of Southeast Asian Nations plus China, Japan, Australia, New Zealand, and South Korea.
RELATED READ: Delay in RCEP participation costly to PH, DTI chief warns
Micro, small, and medium enterprises (MSME) – which comprise 99.5% of about a million registered businesses in the country, including exporters – will also get priority.
Pascual said DTI’s strategic priority is to upgrade, upskill, and upsize MSMEs.
For MSMEs to continue to scale, there is a need to address their constraints to access finance, technology, and the market, he said.
DTI further seeks opportunities for MSMEs in the Philippines to integrate into domestic value chains and to penetrate multinational companies’ global value chains.
DTI, in collaboration with the Department of Information and Communications Technology, will likewise promote digitalization and digital transformation programs for MSMEs.
“By embracing digital transformation, MSMEs can also operate efficiently, reduce costs, and earn profits while manufacturing more affordable products. Digital transformation further enables MSMEs to adapt and become sustainable businesses, for example, by being able to provide services and goods even amid disruptive events,” Pascual said.
