Electric Vehicles (EVs) have gained attention globally as countries pursue the use of alternative technologies that reduce harmful emissions, climate-related effects and reliance on the use of fossil fuels. In the Philippines, policies and programs in support of the EV industry have been implemented, while a pending legislation awaits enactment. In an attempt to contribute insights to the policy discussion on EVs, the study examines the EV industry in the Philippines, current regulations, and challenges faced by the industry. The study finds strengths and opportunities in the EV industry, which include positive industry outlook and prospects for manufacturing in the supply chain. It also identifies weaknesses and threats related to technology utilization and competition. The study also presents recommendations to take advantage of the industry's potentials.
The Philippines enacted two legislations to promote renewable energy (RE) deployment (i.e., Renewable Energy Act of 2008 and the Biofuels Act of 2006) in recognition of the advantages of the use of RE as energy source. However, there remain issues and criticisms on the promotion of RE technologies and on the implementation of the RE laws. Both sides of the debate have their justifications for supporting or not supporting the use of RE resources and technologies. The implementation of the RE laws, rules, and regulations has also been receiving criticisms. For this paper, data and information on the areas of debate were collected and examined. Findings provide some reference for revisiting the RE laws and regulations to improve their implementation and produce better outcomes for stakeholders.
MSMEs find it challenging to undertake innovation activities given their limited resources and capabilities. Studies on innovation in MSMEs have identified internal and external factors that affect innovation capabilities and activities, one of which is government support. Incentives such as tax deductions/credits, grants, subsidies and other similar instruments have been used by governments to promote innovation especially in MSMEs. Using the 2015 Survey of Innovation Activities of Establishments, this paper presents a profiling of innovation activities and characteristics of surveyed MSMEs in the Philippines, and attempts to estimate the impact of government incentives on their innovation behavior and outcomes. Findings indicate that more MSMEs undertake knowledge management, organizational and marketing innovationthan product or process innovation. Receipt of government financial support for innovation activities was found to have a positive impact on organizational and marketing innovation.
The Philippines demonstrated significant economic growth - and is still gaining momentum - in recent years. This was after being tagged as the 'sick man of Asia' for showing slow growth while its Asian neighbors flourished. To sustain the current growth momentum and make it inclusive, transforming the economy becomes crucial. The government developed a new industrial strategy. It started with the Manufacturing Resurgence Program which developed industrial roadmaps with the help of the private sector. This was meant to evolve into a Comprehensive National Industrial Policy (CNIP) that integrates industry/manufacturing with agriculture and services. The overall strategy identifies competition, innovation, and productivity as the underlying framework. The New Industrial Policy has further evolved into an Inclusive, Innovative Industrial Strategy (I3s) recognizing the crucial role of innovation especially as we are on the road towards Industry 4.0. The overall objective of the Philippine industrial strategy is to build globally-competitive industries as well as strong domestic and global linkages. Currently, there are 12 priority industries identified. To boost growth and make these industries competitive and productive, several strategic actions/measures have also been identified, such as addressing supply chain gaps, providing HRD and skills training, developing small and medium enterprises, considering innovation and upgrading, intensifying investment promotion, and addressing horizontal issues e.g. infrastructure, logistics, and regulatory processes, among others. With the strong economy that the Philippines has been experiencing and a new industrial policy being implemented, attaining growth that is sustainable and inclusive is promising. Manufacturing growth surpassing services sector growth in the last three years is a testament to the impact of the new industrial policy on the economy, especially in the manufacturing sector. With the continued implementation of the strategic actions and programs and support from stakeholders, goals that strengthen SMEs, industry and innovation hubs establishment, more and quality labor generation and labor productivity enhancement, among other aspirations for the industry, can be achieved.
The slow progress of the Cadastral Survey Program in the Philippines has been associated with implementation issues that have affected the effectiveness and efficiency of the program. A review of the processes, procedures, and existing institutional set-up in the conduct of cadastral surveys helped identify factors behind the slow progress and delays in implementation. These factors include the tedious procurement process and procedures; slow verification of survey reports/returns; peace and order situation in areas subject to cadastral survey; lack of cooperation from the local government units; and inaccurate and dated land database. The paper assessed the accomplishments of the cadastral survey program and estimated the funding requirements needed to finish the remaining surveys based on data and information made available by the Department of Environment and Natural Resources/Land Management Bureau and other government agencies. Based on the findings, recommendations on how the program may be improved were presented.
How are the ASEAN+1 free trade agreements facilitating the flow of goods in the supply chain in East Asia? This chapter looks at the experience of the Philippine automotive and electronic sectors–-two sectors that are well integrated into the supply network in East Asia. Using firm interviews, the study outlines the firms' segment of the supply chain and identifies impediments at points critical for firms, particularly in relation to free trade agreements. FTA utilization and awareness, trade facilitation, logistics and government support are some of the issues that come to light.
Free Trade Agreements (FTAs) are known to enhance trade through reduction or elimination of barriers, such as tariffs on imported goods. The difference between the preferential tariff rate under an FTA and the most-favored-nation (MFN) rate can be significant enough to encourage trade under an FTA. The Philippines has signed several FTAs and has enjoyed a reduction and even the elimination of tariffs on specific commodities. This research aims to understand the relationship between preferential margin and FTA utilization rates in the case of the Philippines. It uses an empirical model to estimate this relationship using an FTA import ratio as a variable for utilization and the difference between MFN and FTA tariff rates as a variable for margin. Findings suggest that the preferential margin is positively associated with the utilization rates for FTA agreements. Results are found to be relatively robust after controlling for different fixed effects variables. Among the Philippines' FTA partners, margin is revealed to be significant in increasing imports from its ASEAN neighbors. Furthermore, the study found a positive and significant relationship between margin and imports of nearly all commodity groups.
This paper is a narrative account and assessment of the grassroots participatory budgeting (GPB) process in three municipalities of the Negros Province, namely, Sagay City, Hinigaran, and Cauayan. The GPB process was implemented with the objective of empowering civil society organizations (CSOs) to engage with local government and national government agencies in local development planning. This study is a rapid assessment of the GPB process and involved interviews and focus group discussions with key stakeholders from the local government and civil society, and collection of relevant documents to examine how the GPB FY2015 planning process and prioritization of projects were implemented on the ground on the aspects of CSO participation, LGU-CSO engagement, and integration of GPB process in the local planning process; and to identify bottlenecks in the implementation of subprojects identified in FY2013 and FY2014 GPB process. The paper also provided some insights on areas for further improvement in the subsequent rounds.
In November 2015, the ASEAN Community composed of three (3) pillars: the ASEAN Economic Community (AEC), the ASEAN Socio-Cultural Community (ASCC), and the ASEAN Political-Security Community (APSC) was established as a response by the ASEAN Member states to the need to develop a Post-2015 Vision of a cohesive, economically integrated, socially responsible and a truly people oriented, people -centered and rules-based ASEAN. Each pillar corresponds to a blueprint, and are part of the general master plan called ASEAN Community Vision 2025 with the theme "ASEAN 2025: Forging Ahead Together". This study focuses on the AEC Blueprint 2025 and its characteristics and elements. After five years upon establishment, there is a need to assess how the Philippines has fared in achieving the key result areas in the AEC Blueprint 2025. By comparing the baseline with the most recent data, this study found that the Philippines is among the middle of the pack (ranking from 4th to 6th) among the ASEAN countries. In terms of AEC vision and goals, the Philippines performance suggests that the country is generally on track and is progressing in the right direction.
This study looks at the effectiveness of the strategy and the complementary interventions of the Sustainable Livelihood Program's Self-Employment Assistance Kaunlaran (SLP SEA-K). The SLP SEA-K uses a microcredit strategy that intends to provide credit access to the poor, improve the ability of the group to borrow, and enable it to engage in income-generating activities. Microcredit services are generally believed to have a positive socioeconomic impact; however, the success of projects may depend largely on the management of the program. The authors found out that the government lacks the capacity to handle microcredit programs. Additionally, they see the one-size-fits-all strategy of the program as a problem because of the diverse range of beneficiary profiles.
The Philippines has been more cautious in its policy toward free trade agreements (FTAs) than other ASEAN member-states, having signed, so far, only one bilateral agreement with Japan in addition to the various ASEAN+1 agreements. While the government is expected to progressively reduce preferential tariffs to zero, Philippine firms have historically been slow to take advantage of FTAs. This survey reaffirms that this awareness and the usage of FTAs need significant improvement among both manufacturing and services sector firms.Identified as the main source of information for FTAs, the government needs to increase the efficiency, scope, and reach of its promotional and technical training programs and to rely further on technology to deliver results. These efforts to enhance FTA utilization are directly linked with the easing of rules of origin (ROOs) compliance and administration. At the national level, these efforts include reforms toward electronic Certificates of Origin and self-certification, and linkage to the national single window. This will improve timelines and ease the entry of micro, small, and medium enterprises. Regional efforts to harmonize ROOs can increase FTA utilization across ASEAN member-countries and pave the way for the forthcoming Regional Comprehensive Economic Partnership.
The National ICT Household Survey (NICTHS), conducted by the Department of Information and Communications Technology (DICT) in partnership with the Philippine Statistical Research and Training Institute (PSRTI), is the first-ever household survey in the country focusing on ICT. The NICTHS is one of the strategies of DICT to jumpstart the generation of official information and communications technology (ICT) statistics critical for monitoring ICT development, particularly the expansion and diffusion of digital technologies, as well as for national development planning and policymaking. The NICTHS has a wealth of information describing households' ICT equipment and individual uses of ICT (information technology, fixed-line, and mobile Internet). This study analyzes the results of the NICTHS to help the government in developing and evaluating ICT policies and strategies, including measures to address issues, such as the digital divide, and in assessing ICT developments in the country compared to that of its peers. The study looks into ICT access and use as they pertain to living conditions (and livelihood) of households, skills of individuals (particularly in mobile telephony and the Internet), and the sharing of equipment within a household (including gender issues), that in turn, can provide clues on the potential impact of increased ICT adoption in the country on productivity, growth, jobs, and inclusion.
As 2015 draws near, assessing ASEAN's progress toward the ASEAN Economic Community (AEC) defined by the AEC Blueprint is necessary and instructive. This paper constitutes the Mid-Term Review (MTR) of the AEC Blueprint for the Philippines. The Philippines Country Report presents the results of the surveys related to the MTR on areas including trade liberalization and facilitation, services and investment liberalization, labor mobility, and agriculture. In assessing the progress of implementation of the country's commitments under the AEC, a scorecard mechanism is applied. The report also covers two case studies as well as discussions on the role of the private sector and SMEs, and concludes with recommendations to raise the implementation rate of the AEC measures in the country.Overall, the survey results demonstrate how the AEC and the AEC Blueprint could address some of the issues that have constrained private sector response to the opportunities provided by greater openness in the Philippines, particularly the complex and inefficient administrative processes and procedures, and lack of effective competition in key sectors of the economy. While the Philippines has demonstrated its commitment to the AEC and the AEC Blueprint, key measures still need to be realized, particularly those that relate to services liberalization, customs integration, and ratification of transport protocols and agreements. The analyses of the study have demonstrated the benefits of the accomplishment of AEC measures in the Philippines, particularly those that precisely addressed the key institutional weaknesses faced by the private sector. Further delays in implementation could be costly for the country.
