PH champions SME cause in Apec meetings

MANILA, Philippines–The Philippines will urge member-states of the Asia Pacific Economic Cooperation (Apec) to implement programs that will help link small and medium sized enterprises (SMEs) to automotive global chains during the 22nd Automotive Dialogue forum.

The move to champion the cause of SMEs—one of the four priorities of the Philippines as host of the Apec meetings this year–was meant to recognize “SME development and capacity building as one of the pillars of the Apec economies’ collective efforts towards building more inclusive societies,” the Department of Trade and Industry said Tuesday.

This year’s Automotive Dialogue, which starts Wednesday, will focus on the theme “Integrating SMEs into the Automotive Global Value Chains.”

This forum has become an avenue for Apec officials and senior industry representatives to formulate strategies to raise the level of integration and development of the region’s automotive sector.

Trade Assistant Secretary Ceferino S. Rodolfo will be the keynote speaker for the 22nd Apec Automotive Dialogue, while Ramon Vicente T. Kabigting of the Philippine Automotive Competitiveness Council, Inc. (PACCI) will discuss “The Role and Contribution of Parts and Components SMEs in the Development of the Automotive Industry.”

The DTI has been actively supporting and beefing up the capacities of local industries as the country gears to become a competitive manufacturing base for motor vehicles as well as parts and components by 2025.

This was in line with government moves to implement a new industrial policy centered on deepening the local companies’ participation in the global value chains (GVC).

Trade Assistant Secretary Rafaelita M. Aldaba earlier said the DTI’s new industrial policy was expected to enable better coordination across government agencies; effectively address the binding constraints that are preventing new investors from coming in or moving up the value chain; and allow local firms to build economies of scale to reduce costs and eventually, participate in the large global production networks.

“The focus of the industry policy is not for the government to provide blanket subsidies such as income tax holidays. What we are pursuing is more focus on the global value chains,” Aldaba said.

“This is what we need to look at because this is the way for us to have access to technology, new markets, and consequently, maximize the opportunities in an open trading environment. It also calls for the government to be more proactive,” she added.

At the heart of this industrial policy is the development of the Philippine automotive industry through its integration into the production and sales systems of global automakers, Aldaba earlier said.