LAST Monday, President Marcos Jr. signed a new law, Republic Act 11982, also called the Tatak Pinoy Act, which was readily praised by Trade and Industry Secretary Alfredo Pascual along with senators and representatives who shepherded the measure in their respective legislative chambers. This newly-enacted legislation was touted by its proponents, including the President, as the one law that will empower Philippine industries to manufacture a broader range of higher quality and sophisticated products, elevate the country’s position in the global value chain, and enhance productivity and competitiveness in the global market.
Under the law, a Tatak Pinoy Council will spearhead the development and implementation of a multi-year strategy focusing on five key pillars: human resources, infrastructure, technology and innovation, investments, and sound financial management.
“We are confident that this legislation will bolster our ongoing programs, propelling industries towards greater global recognition and success. It underscores our commitment to implement measures that enhance the competitiveness of our local industries, ensuring that the world gets to experience what the Philippines has to offer,” Pascual said.
‘Behind all this acclaim for the law’s potential benefits to the economy and the people, we still see rough sailing for the manufacturing sector in the Philippines, especially because local capital sources are just not enough to bankroll giant manufacturing ventures.’
Supporting and promoting the production of more sophisticated and high-quality products are the lofty intentions of this law, even as it builds on the existing flagship initiatives of the DTI, such as the One Town, One Product (OTOP) and Malikhaing Pinoy Program, which cultivate and promote unique products and empower local entrepreneurs and innovators to elevate the quality and marketability of locally made products.
Tatak Pinoy is poised to revolutionize industries, particularly Philippine manufacturing, amidst the entry of Fourth Industrial Revolution technologies. It will amplify DTI’s efforts in building an Industry 4.0 Pilot Factory, establishing a Center for Artificial Intelligence Research (CAIR), and supporting the country’s Regional Inclusive Innovation Centers (RIICs). The new law will also drive innovation and facilitate Industry 4.0 adoption, especially among micro, small and medium-sized enterprises (MSMEs).
It is worth mentioning that our government leaders saw the enactment of template laws such as the Tatak Pinoy Act as in line with President Marcos’ priorities in the Philippine Development Plan (PDP) 2023-2028. They said this Act lies at the core of the nation’s industrialization strategy, revitalizing and driving the economic agenda with precision. With its focus on promoting industrial excellence, embracing innovation and navigating contemporary challenges, Tatak Pinoy is a transformative legislation that empowers Philippine industries to thrive in an intensely competitive global landscape.
Another DTI undersecretary said the Tatak Pinoy Law is a significant milestone that will enable our industries to climb up the economic complexity ladder, making the Philippines a more formidable player in the global market. Tatak Pinoy will enable our industries to embrace new technologies and effectively overcome the challenges of the modern world.
Secretary Pascual said a critical provision of the law is the mandate for the Philippine government to prioritize Filipino products and services in government procurement, strengthening collaboration between the public and private sectors.
Behind all this acclaim for the law’s potential benefits to the economy and the people, we still see rough sailing for the manufacturing sector in the Philippines, especially because local capital sources are just not enough to bankroll giant manufacturing ventures. That is why we need foreign investments, and all these years president after president has been spending much time and money on foreign travel, investment caravans, etc. to attract foreign money, with few results to show for their efforts.
We do not need to go further in research to know why. Foreign investors are always on the lookout for opportunities to make profits, and they will not decide to set up shop in a place where power is so expensive.
If you are a manufacturing concern, say a steel plant or vehicle factory, electricity eats up from 35 to 40 percent of your cost, and it would be very hard to run the business, lower your overhead and notch some profit.
While power is not the only concern of investors, solving its high cost locally will go a long way in catalyzing industrialization, even more efficiently than legislation.
