November 29, 2023

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Department of Trade and Industry highlights efforts for Industry 4.0

Department of Trade and Industry (DTI) Secretary Ramon Lopez stressed the agency’s commitment in pursuing inclusive innovation in various industries as the world enters the Fourth Industrial Revolution (Industry 4.0).

This can be achieved through greater collaboration with other government agencies and the private sector.

As reported, they are determined to create an inclusive as well as innovative culture and environment where everyone can advance even at different paces.

This will guarantee that no Filipino shall be left behind in Industry 4.0.

Collaborative efforts in preparation for Industry 4.0

During the recent 2019 Inclusive Innovation Conference, the Secretary shared collaborative efforts of government and private sector in improving the country’s technology, human capital, as well as institutional framework in preparation for Industry 4.0.

The Department has been working with several agencies to drive this endeavour. These are:

  1. The Department of Science and Technology (DOST)
  2. The Department of Information and Communications Technology (DICT)
  3. The National Economic Development Authority (NEDA)

Support will be provided for those who need assistance in adopting advanced technologies and adapting to new realities.

At the same time, they will ensure that the positive impact and benefits of Industry 4.0 innovations are felt by all in the country, regardless of geography or generation.

Innovation is the best way for the Philippines to prepare for future production.

Steps being done

In the advent of Industry 4.0, the Department recognised the need to update roadmaps and incorporate innovation as a key element.

Measures, which will enable MSMEs and industries to upgrade and sustain their competitiveness, are included.

DOST Secretary Fortunato Dela Peña underscored the significance of science and technology in innovation and encouraged inventions as well as researches to be commercialised.

DTI and the Board of Investments (BOI) have included the use of new technologies as well as the shift to Industry 4.0 technologies in the Investment Priorities Plan.

These were also among the criteria recommended in selecting industries and activities to be included under the Strategic Investment Priority Plan (SIPP), which will be entitled to new incentives under the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA).

Among the priority sectors identified under the SIPP are innovation, R&D activities, and start-ups.

DTI and BOI are also prioritising the development of the electric vehicle (EV) industry in the country, through the proposed EV Incentive Strategy program.

It will provide comprehensive fiscal and non-fiscal support to enable the traditional motor vehicle industry to shift to EV and begin its development.

What the Philippines needs

NEDA Secretary Ernesto Pernia explained that the new globalisation is characterised by volatility, uncertainty, complexity, and ambiguity.

The Philippines needs voice, unity, consultation, and agreement to address these challenges.

Although Industry 4.0 technologies will drive the Philippine industries forward, any significant digital transformation will require new business models and workforce reskilling.

Companies are encouraged to begin their respective digital transformation as soon as possible.

The importance of Industry 4.0 in manufacturing performance and future production lies in making manufacturing more efficient and scalable.

Furthermore, there is a need to sustain, institutionalise, and expand the Regional Inclusive Innovation Centres (RIICS).

These will help in commercialising market-oriented research to encourage competitiveness in the regions.

The RIICs, built in partnership with DOST and other agencies, aim to generate better employment opportunities, more entrepreneurial activities, and sustainable economy.


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