Keynote Address of Secretary Ramon M. Lopez
Philippine Quality Challenge (PQC) Awarding Ceremony
13 December 2018, Board of Investments Building

Good afternoon everyone. First of all, hihingi po ako ng paumanhin sa aming delay sa pag-akyat dito, due to a long meeting we had downstairs. It was a year-end meeting. Napakaimportante that we also plan for next year, to prepare for the huge challenges, especially in the trade and industry sector.

Let me also share with you the developments about the priorities and programs of the country. We are in a very good situation in the sense that ang growth ng ating bansa ay napakaganda. Over 6% GDP growth, much of this can be attributed to manufacturing. The manufacturing sector is growing faster than 6%, in fact nagpo-post po siya ng growth between 6% to 8%. That’s very important, because we ride the future of our country in this sector. Our exports may be growing, but it’s not growing faster than imports. That’s why it’s really important for the manufacturing sector not only to grow, but to grow fast.

As we highlight the importance of that, it is also important to grow the manufacturing sector to supply the needs of a growing economy. As the economy grows, there is increasing demand for cement, steel, and other products. Kapag kulang ang supply, anong nangyayari? Nag-iimport. That’s why we have large imports, hindi mapantayan ang demand. Ang resulta, we are having a trade deficit.

The trade deficit is not new; we are a perennial trade deficit country. Bata pa lang ako at tayong lahat, may trade deficit na sa Pilipinas dahil lagi tayong nag-iimport ng mas marami kaysa nag-eexport. In the administration of President Duterte, we are trying to leapfrog our manufacturing sector. Only then will we have a strong, vibrant, innovative, and quality-oriented manufacturing sector that can match the demand of the local economy and the exports. ‘Yun po ang importansya ng ginagawa natin ngayon.

For so many years, ang growth ng manufacturing is around 3%, now it’s in the 6% to 8%. Hindi na po naiiwan ang manufacturing industry. Dahil sa ating ekonomiya, nandiyan po ang ang, industry, at services. Madalas nago-grow ay services. Ngayon si industry, humahabol na.

In that context, I’d like to specify, in relation to our activity this afternoon, the importance of quality. If we are to grow, hindi pwede yung pwede na at gawin ‘yung ginagawa natin dati pa. There has to be a culture of innovation, excellence, and quality. As we pursue quality-oriented manufacturing growth, down the road we want to tell the world, na kapag gawang Pilipinas, gawang kalidad.

We want to associate ourselves with Kalidad Pilipinas. That’s why in the last Philippine Quality Awards we said that we have to hone that particular additive. Because even Japan before, they are not known for quality products. American muna, then later on Japan, then Taiwan. Ngayon China, naririnig niyo just a few years ago kapag China-made, hindi maganda ang quality. Pero ngayon, China is getting that image of quality. Our cellphones, iPhones are made in China.

You have to earn that respect, earn that image. We have to work for that. It’s important in events in events like these and partners like you, the academe and the research institutions. Of course the MSMEs [micro, small, and medium enterprises], we have to start them young. We really want to start early, that culture of quality and excellence.

The DTI is ready to support you through trainings, seminars, technical assistance, anything that we can do to help your sector. Undersecretary Barba was discussing that a few weeks ago, we had the PQA [Philippine Quality Awards], dapat magkakasama na siguro ‘yung award na for this, from SMEs to big companies. Dapat sa Malacanan na gawin para makilala rin kayo ng Presidente.

Ang advocacy ng ating Presidente ay magkaroon ng solid na industrialization strategy. Siya nga po ang nagtutulak sa amin, na dapat ang ating industry, may iron and steel din tayo. So kaya ngayon, masaya kami na mag-aannouce bukas na may pipirma na ng integrated iron and steel project. Integrated, ibig sabihin mula sa minerals, iron ore into the slabs, ito ‘yung parang chocolate bars na mahaba. Ito ay nagiging sheets at nagiging body ng mga appliances, mga kotse. Hindi po ginagawa sa atin ‘yan ngayon.

Even ‘yung mga billets na pahaba na kapag tinunaw nagiging rebar na gagamitin sa construction, dito na rin gagawin. Ngayon kasi ini-import natin ang mga raw materials. This is our way to address the trade deficit. Ibig sabihin, binaba mo ‘yung imports, nakapag-export ka pa. That is our industrialization plan, and quality will always be there.

We all have roles to play. Please maximize the programs that we have and strive for continuous innovation. Good afternoon and Merry Christmas.