Trade Chief highlights PH economic growth and investment surge in Post-SONA conference | Department of Trade and Industry Philippines

In photo: Department of Trade and Industry Secretary Fred Pascual with other Cabinet officials during the post-State of the Nation Address conference

Pasay City, Philippines—On July 23, Department of Trade and Industry (DTI) Secretary Fred Pascual underscored the Philippines’ significant economic achievements and growing global partnerships during a panel discussion on food security and economic development, held as part of the post-State of the Nation Address conference.

“We in the DTI have been exerting effort to attract investments to our country. The moment the interest has been expressed and pursued by foreign investors, they encounter obstacles in implementing their projects,” Secretary Pascual affirmed.

One of the DTI’s flagship achievements is the facilitation of 83 strategic investment projects worth PHP 2.45 trillion through the Green Lane initiative. These projects, spanning renewable energy, digital infrastructure, food security, and manufacturing, are expected to create thousands of jobs and reinforce investor confidence in the Philippines.

“We proposed to the President that we institutionalize the green lanes, which will be the system by which we can speed up the implementation of projects, starting with the approval, permitting and licensing phases dealing with local governments and national governments,” DTI Secretary Fred Pascual added.

Efforts to expedite project implementation include the One Stop Action Center, established in the DTI’s Board of Investments. These initiatives have been successful in attracting investments PHP 3 trillion in aggregate investments, encompassing more than 100 projects.

This success aligns with President Marcos recent SONA, where he emphasized the country’s focus on promoting investment-led growth. He highlighted the DTI’s enactment of policies and programs to create an environment conducive for businesses to thrive, such as reforms in the capital market and fast-tracking green projects.

“We have green-lane certified around a hundred projects with a total investment of three trillion pesos across the sectors of renewable energy, digital infrastructure, food security, and manufacturing,” said President Marcos Jr. as he lauded the green lane certification of approximately 100 projects in key sectors such as renewable energy, digital infrastructure, food security, and manufacturing.

As of May 21, 2024, the DTI is monitoring 231 investment leads or projects worth more than USD 76 billion or PHP 4 trillion from foreign visits. Of these, 12 projects worth USD 327.92 million have already started their operations, while 21 more (USD 1.64 billion) have been registered.

Building on these efforts, the Philippines’ active participation in international trade agreements and economic forums—such as the Indo-Pacific Economic Framework for Prosperity and the Regional Comprehensive Economic Partnership—has further strengthened the country’s economic ties with global partners.

These partnerships, coupled with a recently signed free trade agreement with South Korea and ongoing negotiations with other countries, diversify markets and opportunities for Filipino businesses and workers.

Beyond trade agreements, Secretary Pascual also highlighted the launch of the Luzon Economic Corridor (LEC) during the Philippines-US-Japan Trilateral Leaders’ Summit in April 2024. The LEC is a flagship infrastructure development and connectivity project that aims to boost economic activity and enhance food security in the region.

The DTI has launched its own initiatives to further bolster food security. These include the national food fair, a platform for micro, small, and medium enterprises (MSMEs) in the crucial food and beverage industry, which accounts for nearly half of all MSMEs in the Philippines.

Additionally, the DTI has established the National Food Hub in Clark, Pampanga, as part of the administration’s “farm-to-fork” strategy outlined in the Three-Year Food Logistic Action Agenda. This seeks to revolutionize the food distribution network in the country, particularly in Northern and Central Luzon.

Recognizing MSMEs as the backbone of the Philippine economy, the DTI’s strong support is also evident through programs like the Pondo Para sa Pagbabago at Pag-asenso. Through this program, the Department has released PHP 8.16 billion in loans to over 154,423 micro-entrepreneurs from July 2022 to May 2024. Furthermore, the DTI’s digitalization efforts have onboarded 47,591 MSMEs onto e-commerce platforms, significantly boosting their market reach and operational efficiency.

“The success of our MSMEs is a testament to the resilience and ingenuity of Filipino entrepreneurs. By providing them with the necessary resources and digital tools, we are empowering them to thrive in a competitive market,” said Secretary Pascual.

Consumer Protection has been another key focus for the DTI, with diligent monitoring firms for compliance with fair trade laws and product standards. The establishment of Task Force Kalasag in April 2024 has further intensified these efforts, aiming to safeguard both consumers and legitimate businesses.

To further enhance the business landscape, the DTI led the passage of the Internet Transactions Act, creating a comprehensive legal framework for e-commerce, promoting trust and fair competition in online transactions. This, coupled with the streamlined business processes through digital initiatives like the Business Name Registration System Next Generation and the Philippine Online Dispute Resolution System, has significantly improved the ease of doing business in the country.

“These accomplishments collectively demonstrate the DTI’s dedication to fostering a conducive business environment, supporting MSME development, protecting consumers, and enhancing the country’s overall economic competitiveness,” said Pascual.

“The DTI is committed to driving initiatives that transform the vision of a ‘Bagong Pilipinas’ into a reality, where economic growth is inclusive, sustainable, and beneficial to all Filipinos,” the trade chief added.

However, the evolving business landscape also necessitates a reevaluation of certain sectors to ensure continued alignment with national interests and economic priorities. Following President Marcos Jr.’s announcement to ban Philippine offshore gaming operators and his directive to facilitate job placements and assist displaced workers, the DTI has pledged its full support in ensuring a smooth transition for affected workers while minimizing any adverse economic impact. ♦

Date of release: 23 July 2024

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