The Department of Trade and Industry (DTI) has gathered the support of eight of the country’s conglomerates to one of its flagship initiatives to drive digital transformation, a pilot research center towards industry 4.0.
At the budget hearing at the House of Representatives yesterday, DTI Secretary Alfredo Pascual further pledged support to the country’s micro, small and medium enterprises (MSMEs) by proposing to make it mandatory for government to purchase from these entities.
The proposed budget of the agency in the 2023 National Expenditures Program (NEP) has been reduced by 10 percent to P22.196 billion from P24.596 billion in 2022.
Budget for MSMEs was slashed by 35 percent.
Pascual said the DTI will inaugurate today the industry 4.0 factory which will host pilot demonstration learning laboratories for industry 4.0 technologies, such as robotics, intelligent manufacturing systems, and cyber physical systems.
It will serve as pilot demonstration and learning laboratories with innovative products, modern technologies and digital processes technology platform for various stakeholders from industry, a training and research hub for cutting edge technologies and solutions where MSMEs, researchers and universities will have hands on lessons on industry 4.0.
Established in cooperation with Siemens of Germany, the pilot factory has gotten funding from the top conglomerates in the country.
“We have talked to them we have at least eight conglomerates, having made commitments to support this center. In effect the center will be a public-private partnership,” Pascual said.
He said the facility will be co- located in the innovation campus of one of the country’s major conglomerates in Laguna , very close to the many of the industrial estates.
In support of MSMEs, Pascual said the country could replicate what Indonesia has done.
“.. in Indonesia… it is mandatory for the government to purchase requirements from MSMEs before importing… and we can do it,” Pascual added.
At the hearing, Rep. Edcel Lagman noted how the DTI can fully achieve the full development of MSMEs with a reduced budget.
Pascual said the DTI will harness private -public sector partnership to extend assistance for the agency ‘sMSME programs.
“Money can come from the private sector if there is no government support,” said Pascual.
He cited Go Negosyo Center as an example of how many big companies support training centers. – Irma Isip
