Ladies and gentlemen, magandang hapon po sa inyong lahat!
For this afternoon, mayroon lang po akong pinrepare na mga ilang slides to give you an update kung nasaan na po ang ating ekonomiya at ang mga plano po ng Department of Trade and Industry (DTI) and in general ang plano po ng gobyerno, para tayo makaka-survive at revive dito sa ating pandemic economy.
Ang title po ng aking presentation is about REBUILD PH! This is ‘Revitalizing Businesses, Investments, Livelihoods, and Domestic Demand.’ ‘Yan po ang nakikita naming paraan para tayo ay maka-build back better.
This basically will tell us ano ‘yung mga kailangan nating gawin in the economy para talagang maka-build back better tayo. Sa atin po sa mga policymakers at ekonomista, dalawa po ang tinignan natin dito. One is creating the demand, reviving ‘yung demand ng ating ekonomiya para magkaroon ng sigla at pagkatapos ay dahil dito, mahahatak naman niya ‘yung demand mula sa mga nagpoproduce ng mga produkto para ma-increase ang mga supply.
Ang atin pong objective para magkaroon parin, kahit dito sa pandemiya, of course sa DTI of course madami tayong ginagawang fire-fighting at marami po tayong ginagawa, at being an active member of the Inter-Agency Task Force (IATF), para mabuksan ulit ang economy, reopening which sectors, allowing certain sectors at mga workers to go, and making sure ‘yung mga cargo ay unimpeded. But in the end, we just have to stay the course and we always have to look at how we can REBUILD to have a stronger, modern, and dynamic trade and industry sector. Ito po ay basically pinapalakas po ang mga industriya natin na aside from modern at dynamic, maging mas mataas pa ang employment generation at maging inclusive, meaning madaming nakakapag-participate. ‘Yan po ang ating stratehiya para makabalik ang ating economy.
Noong nangyari po ‘yung pandemiya, marami talagang nahirapan at nagsarang kumpaniya, at kung kayo po ay isa doon, hindi po kayo nag-iisa. In fact, doon po sa survey ng DTI, towards around April, May, and June or at the height of the lockdown, talagang ang mga nagsara na companies ay nasa 38%. Pero towards po when we started to reopen the economy at tayo po sa DTI ay para po tayong nagpopropose sa IATF which sectors to reopen. Essentially, we saw more reopening ineemphasize lang natin na gradual at safe reopening para habang nagrereopen, hindi mag-spike ulit ang mga kaso ng COVID. I must say, noong mga towards November and December, kahit tayo ay nagreopen, nakita natin na ‘yung cases natin ay bumaba. I would say that may good level of success ‘yung ating gradual at safe na stratehiya, making sure na lahat ng taong lumalabas will follow the minimum health protocols so that a good health number of statistics will still allow us to reopen further.
Why is it important? When we start to reopen, we start to bring back jobs, jobs that will create incomei, income will generate more demand at ito po ‘yung magpapaikot ulit ng economy at magdedemand po ulit ‘yan na ang mga kumpaniya, magproduce pa nang marami so ‘yung supply, aangat. Kapag nag-increase ang demand for more supply of products or services, dadami na naman po ang investments at dadami na naman ang trabaho. And the virtuous cycle will continue, with more jobs and more income again. That is our approach to bring back demand.
Sa atin po mayroon po tayong framework na sinusunod. Sa mga nag-aral ng economics noong grade school sila, maalala natin na may mga tinatawag na consumption (C), investments (I), government expenditures (G), exports (X), at imports (M). Madami po tayong programa pero hindi ko na po iisa-isahin pero essentially, ito po ‘yung mga factors that we want to resuscitate and revive: increasing consumption, making sure na may trabaho, may income, may demand. We also promote local products, “Buy Local, Go Lokal!” Itong mga program natin to generate consumption, ito po talaga ‘yung mga programa that will make sure na mag-survive ang mga MSMEs.
Paano po natin ginagawa iyan? I will discuss later pero for now, even ‘yung pagpasa po ng mga Bayanihan I at Bayanihan II, na nagbigay ng mga pondo that will support that MSME sector and all the other sectors na talagang malaking naaapektuhan, lalo na tourism sector, even agriculture sector, manufacturing, and of course, services.
Mayroon pong approach diyan na financial na tinulungan ng Bayanihan I and II na may pondong nilaan ang gobyerno. If you remember, dito po sa Bayanihan I, ang DTI, through the Small Business Corporation (SB Corp.), mayroon kaming budget na ginamit Php1 billion, mabilis naubos iyan. Ang mas maganda dito sa Bayanihan II, na-replenish po ‘yun at na-allocate ang DTI ng Php10 billion, Php6 billion po doon is for tourism na MSMEs at ang Php4 billion is the balance SME sector. At marami pang pondo na napunta sa DBP at sa Landbank, itong mga financial institutions would also be supporting SMEs, making use of microfinancing institutions (MFIs) and of other financial institutions.
Mayroon din naman pong non-financial, ito po ‘yung mga training na tuloy-tuloy na binibigay ng DTI. Ito po ‘yung mga trainings on how to improve your products, on marketing, digitalization para ma-elevate ‘yung mga kakayanin ng mga MSMEs, mentorship, etc.
On investments, we continue to promote ‘yung kailangan maganda pong investment climate. Kaya nga po tinutulak ng DTI kasama po ‘yung ibang mga ahensiya led by Department of Finance (DOF) ‘yung pagpasa po ng CREATE (Corporate Recovery and Tax Incentives for Enterprises) bill. Ito po ay ang bill that will immediately improve the investment environment. Paano po? It will help by bringing down the corporate income tax. Imagine ‘yung 30% corporate income tax will immediately go down to 20% kung tayo po ay MSMEs. Doon pong large naman po, immediately from 30% to 25%.
Isa pa napagana, napalakas, at na-enhance pa ang mga insentibo: If you are a qualified and eligible company in a Strategic Investment Priorities Plan (SIPP), you will be eligible for 4-7 years of income tax holidays at pagkatapos po ay may 10 years pa na low income tax rate, something like 5% of the gross income earned. Mayroon ding option na enhanced deduction, ibig sabihin po madami kang pwedeng i-deduct para ‘yung tax due mo ay magiging maliit nalang. ‘Yan po ay napasa na sa Senate at nagbibicam meeting, ibig po nagmeemeeting ang Kongreso at Senado para ma-finalize ito. This is one game-changer na bill that we are really trying to push for na sana po ay mapasa na agad ng Kongreso at Senado so that it will immediately be for the signature of our President. Malaking bagay po ‘yan para sa ating mga MSMEs.
There are other reforms sa retail trade at public services that will encourage more investments. We also promote ‘yung ating intellectual property discipline that will encourage again great confidence in the business sector to invest in the Philippines.
Sa government expenditures, nandiyan po ‘yung ‘Build, Build, Build’ program that will create and enhance economic infrastructures para po mas maganda ang operations, mas mababa ang cost, at mas efficient ang operations ng maraming businesses. This involves very aggressive program under the Duterte administration. We’re spending for the first time that an administration has spent, something around 5-7% of GDP, when it comes to budget for infrastructure. Habang ginagawa ‘yung infrastructure ang dami naeemploy din niyan, may multiplier effect sa pag–create ng mas maraming trabaho. At ‘yung mga projects na ginawa are all really needed in the economy. I always refer to those as economic infrastructures. Of course, that will also create more demand that will hopefully make use of locally-made materials, like cement at steel, para the more they use local content, mas lalakas ang employment dito sa mga industriya na ito at mabubuhay ulit ang mga industriya na naka-experience ng pandemic.
We continue to promote the exports and work on free trade agreements (FTAs). Kapipirma lang nung Regional Comprehensive Economic Partnership (RCEP), ibig sabihin nito, mas bukas ang merkado around ASEAN plus five other countries at mas madali tayong mag-supply sa kanila o mag-export. O kung tayo ay nagpoproduce dito, we can also easily get ‘yung mga intermediate goods and raw materials na kailangan natin when we produce locally. Dahil sa ganyan, ‘yung local manufacturing natin, mas lalakas.
Sa imports, we’ll have to manage imports o ibig saihin lang na we have to make sure na ang imports natin na kailangan natin let’s say sa ‘Build, Build, Build’, the cement, the steel, and all other intermediate products are of standards. Kasi pag substandards, kawawa ang mga consumers at kung hindi maganda ang infrastructure. Kaya napakadiin po ng DTI sa ensuring compliance sa product standards. We’re adding more and more products—dito po sa recent announcements namin, marami tayong sinasamang produkto aside from the cement at steel, just recently nag-include tayo ng plywood, tiles, at roofing materials para sa safety and protection ng consumers and at the same time, fair trade and fair competition vis-à-vis local manufacturers who are following standards. Ibig sabihin, iniiwasan natin ‘yung imported substandard materials kaya marami tayong tests na ginagawa.
Nabanggit ko ‘yung programa ng DTI outside sa financial support ng MSMEs, we follow the 7M framework sa trainings. Ito po yung changing Mindset; giving Mastery or entrepreneurship concept, from product development, market development, financial literacy, business plan preparation, etc.; mayroon ding Mentorship; we also have a program for Money, which is microfinancing or pagbibigay ng loans; Machines that will improve productivity ng mga entrepreneurs; as well as offer different business Models para sa hindi makaisip kung anong negosyo ang papasukin ko ngayon, we also offer Models of franchising; at kung may produkto na, ‘yung Market or helping you sa marketplace or incubation.
We develop programs like GoLokal! ‘yung mga stores na nasa malls that will carry your products for free kapag pasado kayo at kapag na-curate kayo in terms of quality and attractiveness of the product. We also with product design kapag maganda na, may market na pagbebentahan. Ang maganda doon, you need not pay the rental in the mall. Alam niyo para magrenta sa mall, mahal-mahal din po iyan, you’ll have to pay easily maybe Php25,000 or even over a Php100,000 depende sa size. So ito, mabibigyan ng exposure ang produkto at makakahanap kayo ng buyers eventually, madidiscover kayo doon. So we have those kinds of stores, GoLokal!, as well as OTOP Hub or One Town, One Product Hub para libre ang exposure niyo. ‘Yung malls, kapartner din nating ang SM at iba pang malls in many ways para matulungan ang SMEs at ma-promote ang products.
Of course, I also mentioned training on digitalization para kung wala kayo physically sa mga malls, pwede narin madevelop ang mga MSMEs para makabenta online at ang e-commerce talagang lumawak ang kanilang market kasi nadidiscover na sila online.
There are other programs even the Negosyo Centers, we have over 1,100 Centers nationwide. We give out livelihood support programs, ‘yung Negosyo Serbisyo sa Barangay, ‘yung mga tao mismo at the barangay level kahit walang bayad si DTI diyan, nakikipartner lang tayo sa mga barangay chairman para mabuksan ‘yung segment na ‘yan at maabot ng DTI and Industry. ‘Yung mga mentoring at ‘yung mga Philippine Trade Training Centers (PTTC) marami po tayong portions diyan parang academic institutions ng mga entrepreneurs. Just go to the website ng DTI, look for PTTC and other programs ng DTI.
We really encourage you na attend nang attend ng webinars para makakuha ng ideas at knowledge how to run and grow your business. Our objective really is to create smarter entrepreneurs, hindi pwedeng small ka forever or micro entrepreneur ka forever. We want to create smarter and innovative entrepreneurs kasi ‘yan ang susi talaga para talagang lumakas at lumaki ang business.
May program rin tayong para sa naapektuhang biktima binibigyan din po sila ng livelihood programs. Dito nakakakuha tayo ng extra budget thanks to Senator Bong Go, tinutulungan tayo na napupuntahan natin ang mga nasunugan, mga nabaha, at lahat ng victims of calamities, lahat ng mga pinupuntahan nating ‘yan pinupuntahan ni Senator Bong. Binigyan natin ng livelihood support, something like Php8,000 to Php10,000 grant mga gamit pang-negosyo sa marami nating kababayan. On the other hand, CTRL + BIZ Reboot rin po is just one of the many digital training programs that we are sharing with the SMEs.
Just an update rin on the microfinancing, nabanggit ko na nakapagpahiram tayo ng
Php1 billion to over 17,000 borrowers under Bayanihan I. Ngayon we have about Php10 billion as mentioned so we target about 60,000 borrowers in Bayanihan II. Kauumpisa palang nito kaya ang naabot palang ay over 2,000 borrowers. Dito, we also invite everyone na mag-apply kayo dito kasi online at may automaticity lalo na kung registered kayo, you just have to show your income tax return, automatic approval for a certain amount. At may grace period pa anywhere from six months up to one year, at zero interest rin po at maliit lamang ang service fee, papatak lang halos 8% kapag four years ang loan term.
Ang ating celebrity endorser rin po sa OTOP si Miss Universe Catriona Gray, ginagawa ito for free, she’s doing this para sa bayan. At marami pa po tayong programa sa DTI, hindi ko na po dadaanan lahat.
Sa Philippine business outlook naman po, definitely negative na po tayo noong 2020, but what we all see is a positive growth for 2021. Kaya maganda po talaga na mag-umpisa at ma-pivot natin ‘yung businesses para lumakas ang negosyo natin this 2021 onwards. ‘Yan yung mga iba’t ibang indicators kung bakit napakalakas ng ating mga financial standing despite the pandemic. In fact, number six tayo sa ranking ng The Economist na napakalakas ng fiscal management.
This shows also na second fastest growing economy tayo bago magpandemiya in growing over 6%. But as you know, first quarter last year, bumaba na -0.7% at noong second quarter ang pinakamababa na -16.5% pero the third quarter, umakyat na ito -11.5% nalang. Hopefully umakyat pa, closer to zero at least para hindi na masyadong negative ang overall GDP rate. We are seeing signs of recovery naman especially when we started to reopen the economy.
Maganda narin sa pag-umpisa ng negosyo dahil nakikita rin natin ang signs of recovery, ‘yung unemployment rate dati nasa 4.5%, 5.3% pero nung nagpandemiya at maraming businesses ang nagsara dahil sa lockdown, umakyat sa 17.7%. Noong nagreopen tayo, nag-improve na sa 10.0% at 8.7% noong mga nakaraang buwan. So pababa na ‘yan nang pababa, hopefully bumalik na tayo to where we were bago ang pandemic.
Ito naman po ang Purchasing Managers’ Index (PMI) ng Pilipinas that show na napakataas tayo noon over 50, that is the benchmark na anything above 50 is growth sa manufacturing bago ang pandemiya. Pero bumagsak ng about 30 nung nagpandemic pero signs of recovery po na umakyat na closer to 50.
Ganyan din ang nakita natin sa exports—tayo ang isa sa mga kaunting bansa na nag-gogrow prior to the pandemic, pero again, pandemic bumagsak ito by half pero umakyat na tayo so that -50% became –30%, -15%, -9% and no we are positive 3%, that is the latest, which is November. So nakikita na natin ‘yung signs of recovery.
Even in our investments even in the pandemic, naka-hit pa tayo ng Php1 trillion and this is the second highest since 2019, which was Php1.14 trillion, trillion po hindi billion, first in the history. Every year, nahihit po natin ang record under the Duterte administration ng mga investments registering sa Board of Investments (BOI). Parating nagrerecord tayo ng Php617 billion (in 2017), Php915 billion (in 2018), tapos nag-Php1.14 trillion, and last year, nag-hit ng Php1.02 trillion kahit na may pandemic. That shows the confidence parin satin mga investors na nagpaparegister sa BOI.
On foreign direct investments (FDI), it’s a bit of a challenge dahil pandemic pero our foreign direct investments have seen improvements lalo na noong the past four quarters, except the last one. ‘Yung growth rate natin we were in over 40% growth rate compared to the previous year so it’s a pretty good indication. Kailangan lang ma–sustain natin kasi nag-eerratic lalo na nung last measure, pero nung four months before that, every month nag-gogrow naman siya.
In terms of ‘yung mga nag–register dahil madaming nag-digitalization, ‘yung dating nag–register sa DTI 1,700 lang nung January to March pero from March up to December, naging 86,000, more than 40 times, napakalaki ng growth. That shows talaga na ang mga kababayan natin ang talagang, ang alam natin dito madaming naapektuhan at nawalan ng trabaho pero talagang naghanap ng negosyo at laban nang laban lang. It’s a good time to do business and a good time to invest parin po.
Ito naman po ‘yung mga priority industries and while I won’t name each one na po, all we’re saying is that we have identified priority industries in the Agriculture, Industry, and Services dahil nandito po natin ‘yung mga key industries where the Philippines would have a comparative advantage na kapag dinevelop natin ito, makaka-export parin tayo at mas marami tayong mapoproduce for the local economy at maiiwasan natin mag-import. We have identified certain approach in Industry Development.
We can heal as one but we can just say also is that ang mga Philippine businesses not only recover but surge for 2021. We can build back better for a stronger, responsible, and more dynamic Philippines. Let’s work together for a brighter 2021.
I would just like to cite some businesses na pinublish ng mga kaibigan natin sila Carl Balita but I will just encourage you to visit their site na naka-indentify doon anong mga produkto at businesses that might have good opportunities ngayong 2021 and moving forward during the pandemic year. Kasama dito ang agricultural products, natural and healthy food alternatives, homemaking and house maintenance products and services, franchising, professionals home services, personal home services, personal tutorial, sales of mobility vehicles, food delivery platforms, bazaar organizers, small supermarkets and market cooperatives, social entrepreneurship, at ‘yung mga may environmental value proposition.
Isa pang kaibigan natin si Paulo Tibig has identified mga businesses na nakikita niya ‘yung nasa food trends, agribusiness, delivery services, trading, I.T related services dahil related ‘yun sa digitalization, online information business, cleaning and hygiene products, fitness and wellness programs, skincare products, at online retail. Nandiyan ‘yung common industries nilang dalawa na agribusinesses, delivery services, at trendy healthy food.
So, let me just conclude with some quotes from former British prime minister Winston Churchill, “Never let a good crisis go to waste.” At ito naman si Mr. Henry Ford, founder ng Ford Motors, “Coming together is the beginning, keeping together is progress, and working together is success.”
Magandang hapon po sa inyong lahat. Let us heal us one, let us recover as one. Thank you! ♦
Date of Release: 10 January 2021