Department of Trade and Industry (DTI) Secretary Alfredo Pascual highlighted the Philippines’ readiness to welcome global investors, and the nation’s strategic trade policies and investment priorities at the 10th Milken Institute Asia Summit on September 14, 2023 in Singapore.
During the panel discussion titled “Global Overview: Illuminating Pathways Through Complexities,” Pascual described the Philippines as a rapidly developing hub for global investments. He identified the telecom, media, technology, semiconductor, aerospace, and healthcare as the key drivers for the nation to enhance its participation in the global value chain.
The DTI Secretary noted the Philippines is one of the fastest-growing economies globally in the last two decades, securing a pipeline of big-ticket investments exceeding the initial target under the Marcos Jr. administration. Despite facing some setbacks, the Board of Investments increased the target from the original USD17 billion to USD26 billion.
According to Secretary Pascual, the ratification of the Regional Comprehensive Economic Partnership (RCEP), coupled with the revitalized and forward-thinking Philippine Export Development Plan (PEDP), sets a promising trajectory to bolster the nation’s position in the global market. He explained the administration is working on industry-specific and firm-centric plans to ensure the development of trade policies in the country.
Recognizing the pivotal role of micro, small, and medium enterprises (MSMEs), referred to as the ‘backbone and lifeblood’ of the country, the DTI Secretary mentioned the government is initiating concerted efforts to introduce digitalization in MSME operations.
As part of the digital shift, Secretary Pascual said the DTI launched a Philippine E-commerce Platform to expand the market reach of small businesses, both nationally and globally. He also cited the establishment of a center for artificial intelligence, designed to serve the needs of both small and large businesses in optimizing the application of AI in their operations.
Further, he cited the implementation of an Industry 4.0 pilot factory aimed at equipping businesses, especially MSMEs, with the knowledge to integrate new technologies into their operations.
He noted the government is revisiting the legal framework governing Internet transactions through the introduction of the Internet Transaction Act, which seeks to protect consumers and facilitate the participation of small businesses in the digital economy. He linked this to the efforts of harmonizing national regulations with regional and international standards, including the recently launched Digital Economy Framework Agreement in Jakarta.
With the emerging field of cybersecurity, Secretary Pascual mentioned the government is keen on developing the capability particularly of the young Filipino population, recognized to have a significant presence in the IT and business process outsourcing sectors, and stands as a driving force in the transition to digital economy.
Secretary Pascual also highlighted the proactive strategy of the government in pursuing free trade agreements (FTAs), including the recently concluded one with South Korea, as part of the country’s broader strategy to expand its market access, particularly for exports. He said the government is optimistic on its goal of becoming a middle-income country in the next two to three years.
The Milken Asia Summit is a prestigious event known for gathering the world’s most influential leaders and thinkers that continues to foster dialogues that shape the future of Asia and the world. It features a roster of high-profile speakers including global policymakers, industry leaders, and financial experts.
