Trade execs draw up blueprint to level up PH industrialization
Trade Undersecretary Adrian S. Cristobal Jr. EU PHOTO FROM BOI.GOV.PH
MANILA, Philippines—The Department of Trade and Industry is developing a new industrial blueprint that may serve as the foundation for the government’s investment policies.
Trade Undersecretary Adrian S. Cristobal Jr. explained that, as part of the DTI’s peer review process in crafting the 2014 Investments Priorities Plan (2014 IPP), the agency has tapped experts and economists to provide their views on how to develop the new industrial policy, and come up with more sophisticated criteria on prioritizing certain economic activities for the state to support.
Cristobal said the economists would have to gauge if the incentives being offered really served to attract investments, generate employment and ensure revenue returns for the government.
“Overall, what we want to see is the economic outcome of our investment regime and our incentive policies. I want to stress the economic outcome because we need a broad perspective and not simply look at the direct output of certain industries,” Cristobal said.
“Economic outcome does not only mean simply counting how many pesos and centavos are invested, and how many jobs are generated. It also includes multiplier effects, and how an economic activity may have spillover effects … on other industries down or up the supply chain. It will be that kind of perspective that we want to look at—the economic outcome, rather than simple output,” the trade official explained.
Consultations for the 2014 IPP are expected to start this month, but its issuance remains uncertain.
The 2014 IPP is said to improve on the existing one as the DTI is looking to further narrow down the list of industries and core activities, basing it on the value chain approach instead.
The rationale is that certain segments in a particular category, sector or industry may no longer need the support of the government and must be excluded from the 2014 IPP.
Trade Secretary Gregory L. Domingo earlier said that there are about 50 sectors that should no longer be eligible to receive additional incentives and that should be reflected in the IPP for this year. The ideal would be to put certain industries and activities on the IPP list for about three to five years before removing them from the list.
According to the DTI, the activities that may be included in this year’s IPP list are manufacturing, services, agribusiness, and infrastructure; trade/market activities both local and foreign sourced which will cover packaging, labelling, and product testing laboratories; and inputs/support industries, which include, among others, raw material supply, semi-manufactured products, plantation, machinery and equipment, labor/HR development, utilities (power, water, heat, etc.), research institutions, machinery repairs and maintenance, and other services.—Amy R. Remo
