DTI PREPARES TO REVITALIZE MANUFACTURING AND EMBRACE INDUSTRY 4.0

MAKATI CITY - The DTI is in the thick of preparations to revitalize manufacturing & embrace Industry 4.0, as it surges forward with its flagship industrial strategy which it introduced in 2016, the Inclusive Innovation Industrial Strategy or i3S.

Speaking at the recently held Manufacturing Summit 2019, DTI Secretary Ramon M. Lopez provided a detailed picture of the Philippine manufacturing sector’s performance since 2013. While the country’s manufacturing sector exhibited a slowdown in growth in the recent quarters of this year due mostly to the US-China Trade War overall global slowdown in growth, and rising global protectionism, he pointed out that looking at the bigger picture, Philippine manufacturing has been growing at a respectable rate, with manufacturing share-to-GDP remaining almost unchanged for the past few years. “Despite (the slowdown), we are enjoying fast growth due to domestic demand,” Trade Secretary Lopez declared.

“The bright spot is, our investments continue to grow,” Secretary Lopez mentioned, as he noted that significant increases in approved manufacturing investments were expected to expand production capacities, address supply chains gaps, and improve Global Value Chain Participation. Data shows that IPA-approved investments in 2016-2018 were at Php 730B, 57.3% higher than during the period 2013-2015. Moreover, growth in Board of Investments – approved manufacturing investments increased 8-fold: from 82% in 2016, it grew to 95% in 2017 then zoomed to 327% in 2018.

In order to revitalize Philippine manufacturing towards a sustainable and inclusive industrial development, Secretary Lopez laid down plans to address growth constraints and leverage government support. These include: HR development to upskill workers and increase productivity; small value chain interventions to address raw materials shortage; incentivizing energy technologies to help bring down power cost; logistics interventions to cut down red tape and standardize shipping cost; and countering unfair trade practices including smuggling and substandard and counterfeit goods through mandatory product certification.

He also gave the audience a peek at industry 4.0 readiness initiatives that the DTI is planning to do to prepare firms, industries, and workers for the future. These include the SME academy as training facility for 4IR technologies to upskill and reskill our workforce to be 4IR-ready; positioning the Philippines as an AI Center of Excellence; Industry 4.0 roadmaps for specific sectors, and an Industry 4.0 pilot factory to serve as a demonstration facility. “We have to increase domestic capacity to support the growing demand of our economy. We should be prepared,” Sec Lopez reiterated. “There is a need to revitalize the manufacturing sector. This is the sector that can create more jobs, better income for our Filipinos.” Sec Lopez concluded.

DTI Targets Truckers, Forwarders to Adopt New Road Freight Transport Standards

The Department of Trade and Industry- Competitiveness Bureau (DTI-CB), in cooperation with Bureau of Philippine Standards (BPS) and DTI- Region 3 Office pushes the adoption of Philippine National Standard on Road Freight Transport (PNS 2135:2018) to fleet operators and hauling companies, in a bid to improve the competitiveness of logistics services sector in the country.

“An efficient and reliable logistics services plays a critical role in supporting the development of our industries. We are pleased to introduce our programs that can cater to the needs of trucking sector and enable us to learn and implement the best global practices and standards as a way to help improve the competitiveness of the country’s logistics services sector.” DTI Competitiveness Bureau Director Lilian Salonga said.

During the Forum on Standards and Other Concerns Affecting Logistics Sector held in Subic, Zambales, the DTI-CB in partnership with BPS presented the guidelines of the PNS 2135:2018 to the fleet operators and freight forwarders who are planning to adopt the said standard.

The PNS 2135:2018 provides indicators and targets on how to measure performance of road freight activities and initiatives to enhance road freight transport operations. It is hinged on four principles:

• Safety - Freedom from unacceptable risk of goods, humans, property, equipment and environment during road transport of commodities.
• Reliability - Ability to perform a required function under given conditions for a given time interval e.g. on time delivery, no damaged goods, preserved quality, no pilferage etc.
• Cost-efficiency - Ability to perform a required function at a minimum possible cost.
• Environmentally sustainable - Ability to perform a required function with minimal negative impact to the environment.

The PNS 2135:2018 was approved in December 2018 through the recommendation of the Technical Committee (BPS/TC 84: Logistics) chaired by DTI-CB and assisted by the DTI-BPS. The committee was composed of members from the truckers’ group, academe, consumer, professional association, research and development, and testing institutions.

The Forum was attended by stakeholders from the trucking and hauling sector, freight forwarding, government, and business community. Resource speakers include Ms. Ma. Theresa Ocampo, Sales and Marketing Superintendent of Subic Bay International Terminal Corp. (SBITC); Mr Samuel Bautista, President and Chief Learning Officer of the Academy of Developmental Logistics Inc., the first organization to adopt the PNS 2135:2018, and Mr. Michael Philip Lazaro, Assistant General Manager of the Subic Bay Metropolitan Authority (SBMA).

The Philippine National Standards on Road Freight Transport (PNS 2135:2018) is one of the key initiatives outlined in the 10 Commitment of Philippine Logistics Services Sector that underscored the government and private sector’s role in advancing a globally competitive logistics sector.

DTI and Sakeholders Set to Discuss Trade Issues and Strategies Under the Trade War

25 November 2019, Manila – The Department of Trade and Industry will hold an international trade forum to discuss international trade policy issues, including the ongoing trade frictions between the world’s economic heavy weights. The forum is part of the DTI’s One Country, One Voice (OCOV) Stakeholder Consultation mechanism on trade policy formulation.

In particular, the forum aims to foster dialogue on how the Philippines can capitalize on the opportunities presented by the trade war and how to address the challenges that hamper Philippine industries from taking full advantage of these opportunities. The forum also aims to tackle how the DTI could enhance its international trade policy strategy, leverage its participation in regional and global value chains, and maximize trade policy tools in light of the rising global protectionism.

Economic simulations of the trade war’s impact on the Philippine economy illustrate minimal negative effects on exports. “While the Philippines is not as vulnerable as other economies, a prolonged trade war could eventually impact Philippine exports” said DTI Secretary Ramon M. Lopez.

Both the United States and China are major trading partners of the Philippines. The country currently enjoys preferential market access to the United States through the GSP scheme and also has an FTA with China under ASEAN. Secretary Lopez added that apart from these existing mechanisms, “enhanced engagement with other major trading partners as well as with non-traditional partners are also being pursued to help strengthen and diversify Philippine export markets”.

The forum, which will be held in December in Manila, will bring together international experts on trade policy, business leaders, policymakers, industry representatives, and government officials, among others.

Undersecretary Ceferino Rodolfo highlighted that “the One Country, One Voice consultations is an important pillar in our unified industry and trade strategy that helps ensure that our trade negotiating position remains rational, responsive to, and grounded on the needs of our stakeholders”. Launched in 2011, OCOV ensures transparency and accountability as government undertakes the process of engaging in dialogues, building mutual trust, and arriving at rational, sound and balanced trade policies in pursuit of national development.

DTI brings only the best from the Cordilleras for the 24th IMPAKABSAT Regional Trade Fair

The Department of Trade and Industry-Cordillera Administrative Region (DTI-CAR), formally launches the IMPAKABSAT Regional Trade Fair 2019, last November 15, at Festival Mall, Alabang, Muntinlupa City, which saw the gathering of around 80 micro, small, and medium enterprises (MSMEs) from the region’s provinces.

Regional Director for CAR, Myrna Pablo, accentuated through the opening program, IMPAKABSAT, which stands for the region’s six provinces, namely, Ifugao, Mountain Province, Abra, Kalinga, Apayao, Benguet, and the city of Baguio and is then completed with the Ilocano word “kabsat” which means brother or sister, describes the whole of the Cordilleras. This is a manifestation of the rich and vibrant culture in the region and how the products of the participating MSMEs reflect such.

One Town One Product (OTOP) Next Gen Program Manager and Regional Operations Group Assistant Secretary Demphna Du-Naga encouraged the MSMEs to continuously innovate their products through availing OTOP assistance on product development, design, packaging, branding, production capability, among others, transitioning them to be more market-oriented and innovation-driven.

“Ang mandatos ng ating Presidente ay tulungan ang lahat ng mga negosyante sa bansa. Sa pamamagitan ng OTOP Next Gen, ang simpleng produkto ninyo ay sasailalim sa product development at innovation tulad ng packaging at branding. Mas magiging marketable ang produkto, mas mabenta sa merkado.” ASec. Naga said during the opening ceremony.

The annual IMPAKABSAT aims to develop and strengthen small and medium enterprises from the region, through the promotion of its indigenous crafts, skills, resources and investment potentials. Products featured at the trade fair vary from organic and natural products, fresh & processed food, wearables and homestyles, coffee, bamboocraft, woodcraft, and furniture & furnishings.

This year’s edition of the trade fair puts the Comprehensive Agrarian Reform Program (CARP) and OTOP Next Gen Program beneficiaries on the spotlight. Likewise, CAR being the coffee capital in the Philippines, visitors and shoppers during the fair were served the best coffee in the region through KAPEtirya.

IMPAKBSAT 2019 will run from November 15-24, 2019, with regular exhibit hours, 10:00 a.m.-9:00 p.m.

DTI sets Forum on Standards in Logistics Services in Subic and Cebu: Truckers and haulers urged to adopt the PH National Standard on Road Freight Transport

The Department of Trade and Industry- Competitiveness Bureau (DTI-CB), in cooperation with Bureau of Philippine Standards (BPS) and DTI- Regional Offices 3 and 7, will conduct a Forum on Standards and other concerns in logistics services sector in Subic, Zambales (18 November) and Cebu City (22 November) with the aim to promote the adoption of Philippine National Standard on Road Freight Transport (PNS 2135:2018) to fleet operators and hauling companies in the country.

“We organized this series of fora to educate the trucking sector about the benefits of implementing the PNS 2135:2018 to their respective companies. We encourage our truckers and haulers to adopt the best global practices and contribute to improving the competitiveness of the Philippine logistics services sector. This offers them an advantage over other companies in providing world-class quality logistics services to our industries.” Competitiveness Bureau Director Lilian Salonga said.

The PNS 2135:2018 was approved in December 2018 through the recommendation of the Technical Committee (BPS/TC 84: Logistics) chaired by DTI-CB and assisted by the DTI-BPS. The committee was composed of members from the truckers’ group, academe, consumer, professional association, research and development, and testing institutions.

Last October, DTI-CB held its first Forum in Tagaytay City, with the BPS presenting the guidelines of the PNS 2135:2018 to the fleet operators and freight forwarders who are planning to adopt the said standard.

“We identified these locations (Region 3, Region 4A, Region 7) for our forum considering its strategic importance to logistics and industries. Being the home to regional gateways and fast growing in terms of economic performance, it is only necessary to advance the development of the logistics services sector in these areas.” Director Salonga added.

Aside from the presentation of PNS 2135:2018 by BPS, the Competitiveness Bureau will share updates on government programs and policies for the development of a globally-competitive logistics services sector, while the Subic Metropolitan Authority (SBMA) and Cebu Ports Authority (CPA) were invited to present for Subic and Cebu City fora, respectively.

For interested parties, you may contact the Supply Chain and Logistics Management Division Program Officer Ms Maria Dalisay Alba thru phone (0632.8899.6247) or email: MariaDalisayAlba@dt.gov.ph. You may also visit DTI-Competitiveness Bureau Official Facebook page for event updates.

DTI Chief sees more Job Opportunities in Trucking Industry

Manila — At the first Logistics Services Philippines Conference held on 6 December, Department of Trade and Industry (DTI) Secretary Ramon Lopez revealed that there are more job opportunities in the domestic trucking industry, which has expanded so fast because of the country’s growing economy.

“The growing investments in the country, especially in the manufacturing sector, increased the demand for trucking, shipping, and other logistics services. Many have invested in these sectors and are now looking for people to be part of their operations. This means more jobs for our people,” said Sec. Lopez.

During the event's press conference, Marilyn Alberto, President of the Philippine Multimodal Transport and Logistics Association, Inc. (PMTLAI), shared that there is now a shortage of drivers and truck helpers in the country.

Sec. Lopez said that those interested to join the workforce can get training from the Academy of Developmental Logistics, Inc., led by Sam Bautista, and the Technical Education and Skills Development Authority (TESDA).

“It is a given that you have to train well to provide good service. But the opportunity is there, we just have to let the people know so we can link them to the proper training institutions,” said Sec. Lopez.

Nestor Felicio, President of the Supply Chain Management of the Philippines (SCMAP), agreed with the Secretary’s assessment and said that proper training is required before one enters the trucking business.

“Not everyone can put up a trucking company; it’s about effectiveness. We’re willing to pay for quality service and choose good and reliable truckers,” said Felicio. SCMAP is composed of companies that avail trucking and logistics services.

The two-day conference, which was themed “Trabaho and Negosyo: Creating Opportunities in the Logistics Services Sector,” gathered around 500 participants from the logistics services industry, government sector, and development partners.

"Logistics is the lifeblood of businesses and the economy as a whole. And as our manufacturing industry grows, the demand for logistics services grows with it,” said Sec. Lopez.

The conference, organized by the DTI and the Board of Investments (BOI), was attended by stakeholders from the public and private sectors. The highlight of the event is the presentation of the Ten Commitments of the Philippine Logistics Services Sector.  The DTI Secretary also enjoined the stakeholders to follow through with the solutions to issues that came up during the summit.

Sec Lopez said that the overall goal is to lower the cost of logistics in our country, since according to the policy brief, logistics cost in the Philippines comprised 27.16% of total sales, higher than other ASEAN countries like Indonesia (21.40%), Vietnam (16.30%), and Thailand (11.11%).

“This can be done with the ongoing aggressive infrastructure development program of the Duterte administration, the hard and soft infrastructure development, more capacity building and training, and working on addressing the various regulatory frameworks that affects logistics competitiveness and efficiencies,” Sec. Lopez said.