The Department of Trade and Industry (DTI) urged government offices to prioritize locally-manufactured products when procuring materials and supplies for their operations in order to help local businesses struggling due to the adverse economic effects of the Covid-19 pandemic.
According to DTI Secretary Ramon Lopez, such a move will help Filipino-owned businesses remain afloat and eventually recover from the adverse effects of the Covid-19 outbreak.
The country’s gross domestic product (GDP) suffered a 16.5-percent contraction in the second quarter after a 0.7 percent drop in the first three months of 2020. The DTI had earlier reported that over 50% of micro, small and medium enterprises (MSMEs) have halted operations as a result of the pandemic. Unemployment has also hit a record high at 17.7%.
“If you’re using government resources, taxpayers’ money, magandang magamit ito para mabili ang mga locally manufactured products,” said Lopez.
“If you’re using government resources, taxpayers’ money, magandang magamit ito para mabili ang mga locally manufactured products.”
Under the Bayanihan To Recover As One Act” or Bayanihan 2 Act that was recently approved by the House of Representatives on third and final reading, the government is mandated to give preference to the procurement of products, materials and supplies produced, made or manufactured in the Philippines.
The government is mandated to give preference to the procurement of products, materials and supplies produced, made or manufactured in the Philippines.
Aside from this, the bill also mandates the government to give preference and to provide incentives to locally-manufactured medical products––including but not limited to face masks, personal protective equipment (PPE), shoe covers, and face shields, among others.
Malacañang earlier issued an Administrative Order urging government agencies to give preference to products manufactured in the Philippines in the procurement of materials and other supplies. The said order covers local government units, government-owned and controlled corporations, and state universities and colleges, among others.
Various sectors have called on the government to procure locally-manufactured products, such as face masks, test kits, and personal protective equipment, rather than purchase expensive goods sourced from other countries.
The government has also been encouraged to purchase goods from local farmers and to utilize local cement and other construction materials for its “Build, Build, Build” program to stimulate the economy and to help provide employment for Filipinos.
“We need to encourage consumers to buy local, to shop, eat and travel local, and to patronize locally-made products or services as it creates local jobs,” Lopez stressed.
The Philippine Retailers Association (PRA) is among one of the groups that has expressed its support for the DTI initiative, stressing that initiatives like these would aid local industries recover from the negative economic impact of the pandemic.