MAPping the Future

About a year ago, on February 26, 2024, a historic piece of legislation was signed into law: the Tatak Pinoy Act, or Republic Act No. 11981. This landmark act represents not just a policy shift but a bold assertion of the Philippines’ aspiration to become a globally competitive industrialized nation. It is a commitment to harnessing the ingenuity, craftsmanship, and resilience of Filipino talent to elevate locally-made products and services to world-class standards.

For far too long, the Philippine economy has grappled with structural challenges that have stifled industrial growth—outdated technologies, a shortage of skilled workers, high production costs, infrastructure inefficiencies, and low foreign direct investments (FDI). Meanwhile, our ASEAN neighbors, particularly Vietnam, Malaysia, and Indonesia, have surged ahead, leveraging industrial policies that foster economic complexity and high-value exports. The question is no longer whether we can compete, but rather: will we rise to the challenge and fully embrace our industrial potential?

A New Industrial Vision

The Tatak Pinoy Act provides a concrete framework to address these challenges. Central to this Law is the Tatak Pinoy Strategy (TPS), a multi-year, multi-sectoral approach designed to build the Philippines’ industrial base through five key pillars: human resources, infrastructure, technology and innovation, investments, and financial support.

To oversee this transformation, the Law establishes the Tatak Pinoy Council, an inter-agency body tasked with implementing and monitoring strategic initiatives that promote economic complexity and industrial sophistication. Furthermore, the Act mandates a preference for locally made goods and services in government procurement, encourages investment in research and development (R&D), and streamlines regulatory processes to attract and sustain high-value industries.

The Case for Industrial Transformation

Empirical evidence underscores the strong correlation between economic complexity and national income. Countries that manufacture and export sophisticated, high-value products enjoy higher standards of living. In 2021, the Philippines ranked 33rd globally in economic complexity, lagging behind regional peers, like Thailand (23rd) and Malaysia (28th). Our share of high-value exports—dominated by semiconductors and electronics—remains disproportionately small compared to our potential.

We must change this trajectory. The Tatak Pinoy Act envisions the Philippines moving beyond assembly-line manufacturing into advanced production—integrated circuit (IC) design, precision engineering, biotechnology, renewable energy technologies, and aerospace manufacturing. It is a call to move beyond traditional labor-intensive industries into the era of mindfacturing—where intellectual capital, innovation, and technology drive industrial growth.

Lessons from the Region

Industrial success does not happen by accident; it requires deliberate strategy and sustained commitment. Singapore’s Manufacturing 2030 vision, which aims to increase manufacturing output by 50% by the end of the decade, is built on robust R&D investment, digital transformation, and a skilled workforce. South Korea’s industrial rise was driven by strong government support, strategic investment in education, and targeted incentives for high-value industries.

The Philippines must take decisive steps to emulate these models while adapting them to our unique context. This approach means fostering industry-academe linkages to produce the next generation of highly skilled workers, incentivizing domestic firms to scale production capabilities, and attracting global technology leaders to invest in Philippine industrial hubs.

Opportunities for High-Value Industries

The Tatak Pinoy Act prioritizes industries with the highest potential for global competitiveness. These include:

• Semiconductors and Electronics – Strengthening our existing advantage in electronics by moving up the value chain from assembly to high-value R&D and manufacturing.
• Aerospace – Expanding our foothold in aircraft parts production and maintenance, repair, and overhaul (MRO) services.
• Electric Vehicles (EVs) and Green Technologies – Leveraging the Philippines’ abundant nickel and cobalt reserves to become a key player in EV battery manufacturing.
• IT and Digital Services – Enhancing our leadership in IT-BPM while venturing into artificial intelligence (AI), robotics, and engineering services outsourcing.
• Biotechnology and Life Sciences – Developing world-class capabilities in pharmaceuticals, medical devices, and health technology.
• Creative Industries – Positioning the Philippines as Asia’s creative hub in digital content, game development, and animation.

The government must lay the groundwork for this transformation through strategic initiatives that aimed at cultivating innovation ecosystems that nurture high-tech enterprises and integrate Filipino industries into global supply chains.

A Collective Call to Action

The Tatak Pinoy Act is not just a policy—it is a national mission. Its success depends on the sustained commitment of government, industry leaders, academia, and civil society. We must instill a culture of industrial ambition, where Filipino products are not just made for the domestic market but are recognized worldwide for their quality, ingenuity, and excellence.

The private sector must take bold steps to invest in R&D, modernize production systems, and upskill workers. The academe must align curricula with industry needs to produce a workforce equipped for the demands of an innovation-driven economy. The government must ensure policy continuity and streamline regulations to create a business environment that encourages industrial investment.

Above all, we must foster national pride in Philippine-made products and services. If we truly believe in the world-class potential of our industries, we must champion them—not just in rhetoric, but through tangible support in investment, procurement, and global promotion.

The time for incremental progress has passed. It is time for a bold industrial leap. Let the Tatak Pinoy Act be the catalyst that finally unleashes the full potential of Filipino industry—one that competes, innovates, and thrives in the global arena. The future of Philippine industrialization is in our hands. Let us seize it with conviction and resolve.

(The author is former President of the MAP and former Secretary of the Department of Trade and Industry (DTI). Feedback at <map@map.org.ph> and <aepascual@gmail.com>).