MAKATI CITY – Trade Secretary Ramon M. Lopez unveiled the Securing Manufacturing Revitalization & Transformation (SMART) Program to business leaders and manufacturers present at the Manufacturing Summit 2019 held at Manila Peninsula Hotel, Makati City, early this December.

Speaking at the Summit, Secretary Lopez supported the program’s objectives of revitalizing the manufacturing sector to continue its high growth trajectory and help transition the industries to Industry 4.0. He explained that the projects to be supported under the program would have to be performance-based, targeted, time-bound, and transparent.

The “SMART program will support the adoption of Industry 4.0 technologies, upgrading processes, upgrading products, upgrading services, and development of new business models,” Sec Lopez announced, “For this, we are proposing to spend Php25-30 Billion to support small, medium, and even large companies for a period of 3 years,” he furthered.

The program will support the industry through soft loans, grant vouchers, incentives (through the SIPP), standards, safeguard measures, fund support (similar to the CARS program), and reduction in trade barriers.

The following criteria will be considered in the selection of firms under the SMART program: (a) Global Value Chain upgrading; (b) Social Benefits and externalities (EV: E-PUV, E-jeepneys, E-trikes, E-buses); (c) Adoption of Industry 4.0 technologies to catalyze manufacturing growth & the economy; (d) Innovation, R&D, commercialization of market-oriented research; (e) Emerging industries, clusters & activities that would address gaps in supply/value chains; and, (f) Industrial development in rural areas.

At present, DTI is eyeing the following programs for funding support under SMART:

1. The ECO-PUV Program – this includes the manufacture of jeepneys using both ICE & EV technology, Parts & components of OEM platform & Eco-PUV body, and Production volume & fixed investment support.
2. DTI-National Development Corporation Co-investment Program – this program identifies Co-fund innovation projects to develop new products, new capabilities, provides funding assistance for developing & testing technology projects, and bestows Matching Grants.
3. EV Incentive Scheme (EVIS) Program – this program provides CARS-like incentives (fixed and production volume incentives) to electric vehicle production. Examples are E-jeepneys, buses, trikes, motorcycles.
4. Industrial Transformation Program – this program would provide support to companies that are shifting to Industry 4.0 technologies to improve productivity (digitalization, automation)

The SMART program fully supports the new flagship industrial strategy of the government as it is consistent with the Philippine Development Plan, the i3S (Inclusive Innovation Industrial Strategy), and the inclusive Filipinnovation & Entrepreneurship Roadmap.